Synopsis:
Laxmi Organic signed a Rs. 75 crore, five-year sourcing deal with Hitachi Energy to supply eco-efficient gas, reinforcing its focus on sustainable and green technologies.
During Wednesday’s trading session, shares of a leading Indian chemical company involved in the business of specialty chemicals are in focus on the stock exchanges, after the company announced securing a 5-year Global Sourcing Contract worth Rs. 75 crores from Hitachi Energy Limited.
At 12:34 p.m., the shares of Laxmi Organic Industries Limited were trading in the red at Rs. 224.7 on BSE, down by around 3 percent, as against its previous closing price of Rs. 231.65, with a market cap of Rs. 6,227.5 crores. The stock has delivered negative returns of over 29 percent in the last one year, but has gained by around 22 percent in the last one month.
What’s the News
As per the latest exchange filings, Laxmi Organic Industries Limited has entered into a Global Sourcing Agreement with Hitachi Energy Limited, Zurich, Switzerland, for the supply of an eco-efficient gas used in Hitachi Energy’s SF6-free high-voltage switchgear portfolio. This agreement, valued at around Rs. 75 crores, covers the supply of goods over a five-year period.
This partnership positions Laxmi Organic Industries to manufacture and supply eco-efficient gas that supports Hitachi Energy’s SF6-free switchgear portfolio, reflecting the company’s commitment to sustainable growth.
Financials & more
Laxmi Organic reported a marginal decline in its revenue from operations, showing a year-on-year decrease of around 3.5 percent from Rs. 718 crores in Q1 FY25 to Rs. 693 crores in Q1 FY26. Similarly, its net profit decreased during the same period from Rs. 34 crores to Rs. 21 crores, representing a fall of around 38 percent YoY.
For the Essentials segment, the company aims for an Asset Turnover of 3x-5x and an EBITDA margin of 8-12 percent. For the Specialties segment, the goals are an Asset Turnover of 1x-2x and an EBITDA margin of 20-25 percent. The combined Return on Capital Employed (ROCE) target is 20 percent, reflecting a balanced approach to growth and profitability across both segments.
Laxmi Organic Industries Limited is a globally integrated chemical manufacturer primarily engaged in the business of manufacturing and trading of acetyl intermediates and specialty chemicals. It is a top supplier in India and among the global leaders in niche segments such as diketene derivatives and electrochemical fluorination.
Supported by four strategically located manufacturing facilities in India and an expanding global footprint, Laxmi Organic is well-positioned to serve the high-growth industries, including pharmaceuticals, agrochemicals, inks and coatings, packaging, and personal care.
Written by Shivani Singh
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