Shares of recently listed companies such as food delivery platform Zomato, cosmetics and fashion e-commerce firm Nykaa, and One97 Communications, the parent firm of digital payments app Paytm, have so far disappointed investors with dismal returns. However, some debutants without the arc lights have delivered impressive returns to investors since listing. Specialty chemical maker Laxmi Organic Industries is one such company.
Homegrown chemical manufacturer Laxmi Organic Industries has turned into a multibagger in just 11 months since its listing on the domestic exchanges. The chemical stock has risen 155% since its listing on March 25, 2021, from ₹164.45 to ₹427.7 in intraday trade today.
The company, which deals in acetyl intermediates (AI) and specialty intermediates (SI), was listed at list at ₹155.5 per equity share on the NSE and at ₹156.2 apiece on the BSE, against issue price of of ₹129 to ₹130. So far, the stock has given 3.3 times returns to those investors who hold the shares till date as compared with the upper band of issue price of ₹130 apiece.
If a person had invested ₹1 lakh in this textile stock on March 25 last year, it would be worth Rs ₹3.3 lakh at present.
Shares of Laxmi Organic have risen 15% over the past six months, while it delivered negative returns of 5% since the beginning of this year. It has fallen 4.5% in the last one month. The stock had hit its 52-week high of ₹628.05 on September 16, 2021, while it touched a 52-week low of ₹143 on March 25, 2021.
Laxmi Organic shares have been falling for the last three sessions and dropped 4.9% during this period. On Monday, the stock opened marginally higher at ₹427.70, against the closing price of ₹425.10 on the BSE. However, the stock soon pared gains and slipped into negative terrain to hit a low of ₹415.55 apiece on the BSE.
The stock was trading higher than 200-day moving averages, but lower than 5-day, 20-day, 50-day, and 100-day averages.
With a market capitalisation of ₹11,135.80 crore, the midcap stock has outshined some of its rival companies, such as United Phosphorus Ltd (32%) , PI Industries (14%), Bayer Corp Science (14%), BASF India (40%), and Anupam Rasayan (70%), in terms of one year returns.
For the second quarter ended September 2021, the company posted a 39.6% fall in consolidated net profit to ₹14.57 crore from ₹24.13 crore in Q2 FY21. However, revenue from operations surged 48.4% to ₹608 crore in Q2 FY22 from ₹409.79 crore posted in Q2 FY21.
In the first half of the current fiscal (H1 FY22), net profit jumped 157% to ₹116.89 crore, compared to ₹45.384 crore in the 6-months period ended September 30, 2020. The total income jumped 66% to ₹1,355.40 crore, against ₹814.355 crore in the same period previous year.