Why is Laxmi Organic falling/rising?

Aug 19 2025 10:47 PM IST
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As of 19-Aug, Laxmi Organic Industries Ltd's stock price is 226.30, having increased by 3.12% recently. Despite strong short-term gains, the stock has a poor long-term growth outlook and has underperformed against the benchmark over the past three years.
As of 19-Aug, Laxmi Organic Industries Ltd's stock price is currently at 226.30, reflecting an increase of 6.85, or 3.12%. The stock has shown strong performance recently, gaining 23.76% over the last two days and outperforming its sector by 2.59% today. It opened with a gain of 2.07% and reached an intraday high of Rs 235.6, indicating positive momentum. Despite a year-to-date decline of 6.85% and a one-year return of -16.79%, the stock's recent upward movement is supported by a significant increase in delivery volume, which rose by 2925.09% against the five-day average, and it is trading above all key moving averages. However, the company faces challenges, including a poor long-term growth outlook with a -17.98% annual operating profit growth over the last five years and negative financial results reported for June 25.

In the broader market context, Laxmi Organic's short-term performance has significantly outpaced the benchmark Sensex, which only increased by 1.76% over the past week. While the stock has shown a strong recovery in the short term, it has consistently underperformed against the benchmark over the last three years, with a decline of -33.63% compared to the Sensex's gain of 36.88%. The company's low debt-to-equity ratio of 0.05 times and majority ownership by promoters may provide some stability, but the overall negative financial indicators, including a low return on capital employed and a high price-to-book ratio, suggest caution for long-term investors.
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