Stock Performance Overview
On 26 Feb 2026, Laxmi Organic Industries Ltd’s share price declined by 0.31%, closing at Rs.130.3, which represents the lowest level ever recorded for the company. This decline is part of a broader trend, with the stock falling for five consecutive trading sessions, resulting in a cumulative loss of 7.81% over this period. The stock’s performance today was broadly in line with the specialty chemicals sector, which also experienced modest declines.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning underscores the challenges faced by the company in regaining investor confidence.
Comparative Benchmarking
When compared with the broader market, Laxmi Organic’s underperformance is stark. Over the past day, the stock’s decline of 0.31% contrasts with the Sensex’s marginal gain of 0.03%. Over one week, the stock fell 7.78%, while the Sensex dipped only 0.24%. The one-month performance shows a 6.12% loss for Laxmi Organic against a 0.94% gain for the Sensex.
More pronounced is the three-month performance, where the stock plummeted 28.44%, significantly underperforming the Sensex’s 3.87% decline. Over the last year, Laxmi Organic’s returns have been negative 30.00%, while the Sensex appreciated by 10.32%. Year-to-date figures reveal a 22.88% loss for the stock versus a 3.43% decline in the Sensex.
Longer-term trends further highlight the stock’s struggles. Over three years, the stock has lost 49.28%, in contrast to the Sensex’s 38.40% gain. Over five and ten years, the stock has effectively stagnated with zero returns, while the Sensex has surged 67.62% and 255.44% respectively.
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Financial and Valuation Metrics
Laxmi Organic Industries Ltd’s financial indicators reveal ongoing pressures on profitability and growth. The company has recorded negative net profits for four consecutive quarters, with the latest six-month period showing a profit after tax (PAT) of Rs.36.43 crores, reflecting a decline of 36.53% compared to the previous period.
Operating profit growth has been negative over the last five years, with a compound annual growth rate (CAGR) of -8.49%. This contraction in operating earnings highlights the difficulties in sustaining business expansion within the specialty chemicals sector.
Return on Capital Employed (ROCE) for the half-year period stands at a low 4.87%, while the average Return on Equity (ROE) is 8.76%, indicating modest profitability relative to shareholders’ funds. The most recent ROE figure is even lower at 4.3%, which, combined with a Price to Book Value ratio of 1.9, suggests the stock is valued expensively relative to its earnings capacity.
Cash and cash equivalents have also declined, with the latest half-year figure at Rs.82.44 crores, the lowest recorded in recent periods. This reduction in liquidity may constrain the company’s ability to invest or manage unforeseen expenses.
Relative Valuation and Market Position
Despite the stock’s recent price decline, it continues to trade at a discount compared to its peers’ average historical valuations. However, this discount has not translated into outperformance, as the stock has consistently underperformed the BSE500 index over the past three years.
In each of the last three annual periods, Laxmi Organic has generated returns below the benchmark, with a cumulative one-year return of -30.00% and a profit decline of 41.5% over the same timeframe. This persistent underperformance reflects structural issues within the company’s financial and operational framework.
Shareholding and Industry Context
The company operates within the specialty chemicals industry, a sector characterised by competitive pressures and cyclical demand patterns. Promoters remain the majority shareholders, maintaining significant control over corporate governance and strategic direction.
The company’s Mojo Score currently stands at 9.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 3 Nov 2025. The Market Cap Grade is 3, indicating a relatively modest market capitalisation within its sector.
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Summary of Key Challenges
The stock’s all-time low price reflects a combination of factors including sustained negative profit growth, low returns on equity and capital employed, and declining cash reserves. The company’s valuation metrics suggest a premium relative to its current earnings power, while its consistent underperformance against market benchmarks highlights ongoing difficulties in delivering shareholder value.
Trading below all major moving averages and with a strong sell rating from MarketsMOJO, Laxmi Organic Industries Ltd remains under pressure within the specialty chemicals sector. The company’s financial metrics and market performance indicate a challenging environment with limited recent improvement.
Market Context and Outlook
Within the specialty chemicals sector, Laxmi Organic’s performance contrasts with broader market trends, where many peers have maintained or improved valuations. The company’s promoter-led shareholding structure continues to influence strategic decisions amid these market conditions.
While the stock’s recent price action is notable for reaching historic lows, it remains important to consider the full spectrum of financial and market data when analysing the company’s position within its industry and the wider market.
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