Stock Performance Overview
The stock has experienced a sustained fall, declining by 1.06% on the day against a modest 0.13% gain in the Sensex. Over the past week, Laxmi Organic has lost 6.13%, underperforming the Sensex’s 1.67% decline. The one-month return stands at -5.79%, contrasting with the Sensex’s positive 0.98% gain. More notably, the stock has plunged 28.49% over the last three months, while the Sensex fell by only 2.66% in the same period.
Year-to-date, the stock has declined 22.61%, significantly underperforming the Sensex’s 3.39% fall. The one-year performance is particularly stark, with Laxmi Organic down 29.76% compared to the Sensex’s robust 10.36% gain. Over three years, the stock has lost nearly half its value (-49.11%), while the Sensex has surged 38.46%. The five- and ten-year returns for Laxmi Organic remain flat at 0.00%, in sharp contrast to the Sensex’s 61.31% and 258.34% gains respectively.
Technical Indicators Signal Weak Momentum
Technical analysis reveals that Laxmi Organic is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short-, medium-, and long-term trends underscores the stock’s bearish momentum. The stock has also recorded four consecutive days of losses, accumulating a 7.39% decline during this period.
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Fundamental Metrics Reflect Strained Financial Health
Laxmi Organic’s fundamental indicators reveal a challenging financial landscape. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -8.49% over the past five years, signalling a weakening earnings base. Return on Equity (ROE) averaged 8.76%, indicating modest profitability relative to shareholders’ funds.
Recent financial results have been negative for four consecutive quarters, with the latest six-month Profit After Tax (PAT) at Rs.36.43 crores, reflecting a decline of 36.53%. Return on Capital Employed (ROCE) for the half-year period is notably low at 4.87%, while cash and cash equivalents have dropped to Rs.82.44 crores, the lowest recorded in recent periods.
Valuation and Comparative Analysis
The stock’s valuation metrics further illustrate its current market position. With a ROE of 4.3 and a Price to Book Value ratio of 1.9, Laxmi Organic is considered expensive relative to its profitability. However, it is trading at a discount compared to the average historical valuations of its peers within the specialty chemicals sector.
Over the past year, the stock’s returns of -29.76% have been accompanied by a 41.5% decline in profits, highlighting the disconnect between market performance and earnings deterioration. The stock has consistently underperformed the BSE500 index in each of the last three annual periods, underscoring its relative weakness within the broader market.
Shareholding and Market Capitalisation
The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. The market capitalisation grade assigned to Laxmi Organic is 3, reflecting its mid-tier market value within the specialty chemicals sector.
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Mojo Score and Ratings
MarketsMOJO assigns Laxmi Organic a Mojo Score of 9.0, categorising it with a Strong Sell grade as of 3 November 2025. This represents a downgrade from its previous Sell rating, reflecting deteriorating fundamentals and market sentiment. The Strong Sell rating is supported by weak long-term growth, declining profitability, and consistent underperformance against benchmarks.
Summary of Key Financial Indicators
Operating profit CAGR (5 years): -8.49%
Average Return on Equity: 8.76%
Latest six-month PAT: Rs.36.43 crores (-36.53%)
Return on Capital Employed (HY): 4.87%
Cash and Cash Equivalents (HY): Rs.82.44 crores
Price to Book Value: 1.9
Mojo Grade: Strong Sell (upgraded from Sell)
Comparative Market Performance
Laxmi Organic’s performance over multiple time horizons has been markedly weaker than the Sensex and BSE500 indices. The stock’s three-year return of -49.11% contrasts sharply with the Sensex’s 38.46% gain, while its five- and ten-year returns remain flat, underscoring a prolonged period of stagnation relative to the broader market.
Conclusion
The new all-time low of Rs.131 for Laxmi Organic Industries Ltd highlights the extent of the stock’s decline amid a challenging financial and market environment. The combination of negative earnings trends, subdued profitability metrics, and persistent underperformance against benchmarks has culminated in a Strong Sell rating by MarketsMOJO. The stock’s technical and fundamental indicators collectively point to a period of sustained weakness within the specialty chemicals sector.
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