Laxmi Organic hits new high; stock zooms 52% in 3 weeks on robust Q1 show

Laxmi Organic hits new high; stock zooms 52% in 3 weeks on robust Q1 show

Shares of surged 8 per cent to hit a new high of Rs 414.05 on the BSE in intra-day trade on Friday in an otherwise range-bound market. The stock of the specialty chemicals company was trading at the highest level since its listing on March 25, 2021.

In the past three weeks, the market price of Laxmi Organics has soared 52 per cent after the company delivered a robust financial performance for the quarter ended June 2021 (Q1FY22). With the past three weeks' rally, the stock has zoomed 219 per cent against its issue price of Rs 130 per share.

is a leading manufacturer of acetyl intermediates and speciality intermediates. Its products are currently divided into two broad categories viz. acetyl intermediates and speciality intermediates. Acetyl intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents while speciality intermediates comprise ketene, diketene derivatives viz. esters, acetic anhydride, amides, arylides and other chemicals.

In Q1FY22, the company’s consolidated operating revenues grew 82 per cent year-on-year (YoY) to Rs 736 crore.

The strong growth in revenues was fueled by the growth in acetyl intermediates (AI) and specialty intermediates (SI).

The robust performance in the AI business was attributable to higher realisations, whereas the SI business was driven by both volume and pricing. The demand from end-user industries also remained strong.

This resulted in corresponding growth of 246 per cent and 379 per cent YoY basis in Ebitda (earnings before interest, taxes, depreciation, and amortization) and profit after tax (PAT), respectively. Similarly, the Ebitda and PAT grew by 128 per cent and 181 per cent, respectively on a sequential basis. Ebitda margin expanded by 933 basis points (bps) to 19.73 per cent for the quarter.

Commenting on the outlook, Laxmi Organic said that ongoing capital expenditures at the speciality manufacturing site will be delayed due to the flood. However, the fluorochemicals site has been relatively unaffected and the ongoing capex plans at Lote Parshuram site remain on track.

Q1 has given a good start to the company, however, the market started to correct in the second quarter. Supported by the robust first quarter, the company said it remains focused to achieve FY22 annual business plans despite the flood-related disruptions.

The government’s Vision 2034 for the chemicals and petrochemicals sector, Atmanirbhar Bharat and the PLI schemes will foster the strengthening of domestic manufacturing, reduction in imports and attracting investments in the chemicals sector, it added.

Laxmi Organics jumps 10% after strong performance in Q1

New Delhi: Shares of Laxmi Organics soared 10 per cent in early trade on Tuesday after the company reported strong performance in June 2021 quarter.The specialty chemicals producer reported a 435 per cent jump in net profit to Rs 98.68 crore in the quarter ended on June 30, 2021, the regulatory filing said. The company had reported a net profit of Rs 18.45 crore in the year ago quarter.On a sequential basis, net profit jumped 215 per cent from Rs 31.23 crore in March 2021 quarter.Shares of recently-listed Laxmi Organics surged 10 per cent to Rs 299.50 on Tuesday. The scrip was trading at Rs 292.70 at 10 am. BSE Sensex was trading 238.46 points, or 0.44 per cent, higher at 54,641.31.The company reported almost double income from operation to Rs 689.72 crore in Q1 FY2022, as against 354.67 crore in the same quarter previous fiscal. On a QoQ basis, the revenue rose 48 per cent from Rs 467.44 crore.Listed in March 2021, Laxmi Organics sold its shares at Rs 130 apiece during the IPO. The counter has gained about 131 per cent over its issue price.

Anti-dumping duty on arylides: Notification issued! Anil Singhvi says BIG news for Laxmi Organic, only company to manufacture the chemical - Check share target

Anil Singhvi, Managing Editor at Zee Business, on Monday said that the Government of India has issued a notification that will go on a long way in helping Laxmi Organic. In line with the notification, the Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duty on arylides coming from China.

The Market Guru said that the only company manufacturing arylides in India is Laxmi Organic, hence it is a big news for the company. He also said that the DGTR has suggested to impose the anti-dumping duty in the range of 24 to 44 percent.

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Chetan Bhutani, Special Correspondent at Zee Business, said that DGTR on behalf of the Government of India has issued a formal notification. He said that it is a big news for Laxmi Organic because in the formal order it was mentioned that the company holds 90 percent of the market hold in this particular product and the demand of the product is so high that sometimes the company is not able to meet it.

The government in its notification has also said that Laxmi Organic should do expansion in order to increase the demand of its product, Chetan added.

He said that Laxmi Organic is a good company as the duty which has been recommended is between the CIF value of 24 to 44 percent and arylides are used in the manufacturing of yellow pigments.

Explaining further, he said that the yellow pigments are the chemicals which are used in every day’s work like in the construction equipment manufacturing, in vehicles, etc.

Chetan said that in the coming time the Department of Revenue of Ministry of Finance will definitely issue a formal order in this regard.

While speaking on the shares of the company, Anil Singhvi said that this stock has always been in radar and after listing the shares of the company has shown a good action.

Sumeet Bagadia has suggested investors to hold their position in the stock as it is showing great momentum. He said that the company can give a level of Rs 390-400.