Laxmi Organic Industries Q2 Results Review - Performance Impacted By Plant Shutdown: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Prabhudas Lilladher Report

Laxmi Organic Indsutries Ltd.'s specialty intermediates revenue visibility remains high given long term contracts from global majors while fluorochemicals business faces time and cost overruns, and is likely to scale up gradually once commissioned by Q4 FY23.

Acetyl intermediates and specialty intermediates will remain Laxmi Organic’s core businesses in the medium term, while fluorochemicals will be a long term earnings driver.

We believe, Ebitda contribution from higher value segments (specialty intermediates plus fluorochemicals) will increase to ~70% by FY25E from ~55% in FY22 as specialty intermediates Ebitda grows at ~22% compound annual growth rate and fluorochemicals earnings commence in Q4 FY23.

While we like Laxmi Organic’s stronghold in both acetyl intermediates and specialty intermediates business, we believe that fluorochemicals scale up will be gradual, while most positives are factored in its valuations.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.