LXCHEM trade ideas
Laxmi Organic Industries Ltd- Sector headwinds causing problems
- Targets given in the chart - SL 243
Significant investments in Dahej and Lote facilities for future growth and profitability.
Opportunities in the export market, particularly in the Specialties vertical.
Well-positioned in the fluorine intermediates space with differentiated technologies.
Fundamentals
Market Cap
₹ 7,901 Cr.
Current Price
₹ 298
Stock P/E
80.2
Book Value
₹ 53.2
Dividend Yield
0.17 %
ROCE
11.5 %
ROE
9.18 %
Face Value
₹ 2.00
Promoter holding
72.4 %
EPS last year
₹ 4.70
EPS latest quarter
₹ 1.44
Debt
₹ 406 Cr.
Pledged percentage
0.00 %
Net CF
₹ 47.4 Cr.
Price to Cash Flow
39.7
Free Cash Flow
₹ -277 Cr.
Debt to equity
0.29
OPM last year
8.87 %
OPM 5Year
10.3 %
Reserves
₹ 1,359 Cr.
Price to book value
5.62
Int Coverage
11.6
PEG Ratio
7.73
Price to Sales
2.85
Sales growth 3Years
22.2 %
Profit Var 3Yrs
35.8 %
LXCHEM BULLISHBreakout in laxmi organic , can cross 300 tomorrow, but stock is overvalued, currently trading at a PE of 71, market cap 6995cr, ROE 10.13%
Lakshmi Organics=> Harmonics bat pattern in weekly timeframe
=> After a consolidation breakout happen..First target 0.382 fib level, second target 0.5 level
LAXMI ORGANICSLaxmi Organic Industries Limited was established in 1989 and is in the business of specialty chemicals. The Company primarily manufactures Ethyl Acetate, Acetic Acid and Diketene Derivative Products (DDP). DDP is a specialty chemical group, the technology and business of which has been acquired by the company from Clariant Chemicals India Limited.
The company’s business operations are carried in over 30 countries including 11 offices located in India
ITS HAS SHOWN BIG MOVE TODAY MAY GO UP AS WELL IF IT CONTINUES
CUTTRENT PRICE-283
TARGET PRICE-335
views on lxchem in wcbNSE:LXCHEM presently trading near supply zone after made multi-month trendline BO. Closing above supply zone will rally further and as well as change of trend will happen.
Disclaimer - This chart analysis is only for educational purpose. Do proper research before trade/investment or consult with your financial advisor. This expressed opinion/view/analysis isn't a trade/investment advice/recommendation.
--SEBI unregistered independent trader/analyst.
LAXMI ORGANICS Laxmi Organic Industries Limited was established in 1989 and is in the business of specialty chemicals. The Company primarily manufactures Ethyl Acetate, Acetic Acid and Diketene Derivative Products (DDP)
Company has delivered good profit growth of 29.0% CAGR over last 5 years ; Price to book value 6.88 ; Debt to equity ratio 0.11
Looking good in charts ( symmetrical / Ascending triangle )
Break out Above 488 , we can expect upmove till 500.
LXCHEM - short term tradeBuy LXCHEM @/above 302
Intraday/Short term Target 324
Stop Loss 298
Profit approx. 7%
Medium term Target 386
Stop Loss 291/below
Profit approx. 27%
LXCHEM - READY FOR 5TH WAVE - ELLIOT WAVE ANALYSISLXCHEM seems like it's done A - B - C correction of wave 4. It can launch to 5th wave now.
- Definitely not SEBI - Registered. So, this is only for educational purpose.
LAXMI Organic Industries | LXCHEM | Longterm and Short term ViewCurrently at buy Zone 444
SUP is at 435/416/393
Ascending triangle pattern
Target of 500/600/650
Laxmi Organic Industries ltdLaxmi Organic Industries locked in upper circuit on healthy Q3 earnings
Laxmi Organic Industries' December quarter operating revenue grew 97 percent year-on-year to Rs 859.9 crore
Why Laxmi Organics is a strong Short to Medium term BUY NSE:LXCHEM
TEN POINTS
1. Laxmi Organic Industries is a specialty chemical manufacturer, focused on two key business segments - Acetyl Intermediates (AI) and Specialty Intermediates (SI)..The company is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. Laxmi Organic exports about 25% of the manufactured products.
Additionally, it is the only manufacturer of diketene derivatives in India with a market share of approximately 55% of the Indian diketene derivatives market in terms of revenue in FY21 and one of the largest portfolios of diketene products
2. Stock gained 50% in one month only after listing -hitting a high of 628 and reported a significant jump in its net profit to ₹98.68 crore in the quarter ending June as compared to ₹18 crore in the corresponding quarter of the previous fiscal. Its revenue from operations also witnessed a massive jump to ₹689 crore from 354 crore in the year-ago quarter.
3. However massive rainfall in Pune factory forced the company to close one of its factories for some time during the SEP 21 quarter and Net profit tumbled from ~98 cr in SEP 21 to 10.3 cr in SEP 21 qtr.
4. Coupled with profit booking the stock tumbled to 385 levels.
5. After a 3 month consolidation the company seems to be turning around its limitations shown in the previous quarter.
6. On the positive side- India Ratings and Research (Ind-Ra) has upgraded Laxmi Organic Industries Limited’s (LOIL) Long-Term Issuer Rating to ‘IND AA-’ from
‘IND A+’. The Outlook is Stable, the ratings agency quoted
7. Despite 60% decline in SI volumes on qoq basis on account of 45 days shut down at SI Unit (Mahad) which caused heavy loss, Laxmi’s H1FY22 profits were close to FY21 performance led by rapid growth in specialty business and higher spreads in acetyl business during the first quarter and normalised acetyl spreads during the second quarter. There is a strong visibility on SI order book for H2FY22. Laxmi has acquired significant international accounts during Q2FY22, as 24% of SI sales were from exports as against 5% in Q2FY21.
8. Buying at current levels is recommended for a short to medium term target of 500-520 for the short term and 620 for the longer term.
9. Maintain stop loss around 430
10. Risk reward ratio of 1:3
Our Favorite LaxmiChit Fund ready again.NSE:LXCHEM Looking Bullish after budget session, Taken multiple time support and has broke the Stage 3 distribution Channel.
LAXMI ORGANICLaxmi Organic is near its strong resistance zone of 444-454 with more than average volume.
Could be bought only above 454 with mentioned targets & stoploss.
Go long on Lxchem Lxchem making a nice rounding bottom pattern . It can start it's 2nd run-up . Accumulate Fast !
Laxmi Organic @ 26 Nov 2021Laxmi Organic - The pattern that cover is Alternate BAT and with retracement percentage it may be BAT or Crab. Will review in coming days
Laxmi organicChart is forming a Bullish Bat formation at 392
price should bounce 20% from 392 levels!
LXCHEMElliots wave current status. We should wait and watch. If market moves may be we could figure out which direction its taking may be wave A will continue or might do a corrective wave B.
Laxmi Organic Industries, Short term BearishThe Uptrend was either A-B-C or, we are in the impulsive move making 1-2-3-4-5, where now, we are ready for wave-4 correction.
The long term trend still uptrending
