Laxmi Organic IPO Subscription Status: FINAL
Laxmi Organic Industries Limited, incorporated in 1989, is the leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. It 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 IPO Subscription: End of Day Update
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Laxmi Organic IPO Subscription: Analyst Recommendations
CHOICE BROKING – SUBSCRIBE WITH CAUTION [ Report ]
At a higher price band of Rs. 130, the company is demanding a P/E valuation of 77.2x (to its restated FY20 EPS of Rs. 1.7), which is at a significant premium to the peer average of 43.4x. However, if we annualize the H1 FY21 EPS, the demanded valuation P/E comes out to be 37.7x. Considering the sectoral tailwinds and demanded aggressive valuation, we assign a “Subscribe with Caution”
ICICI DIRECT – CAUTION
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side, given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,”
ANGEL BROKING – Subscribe
“We believe (the price) is reasonable. The company is the only manufacturer of diketene derivatives in India with a diversified customer base. Looking at the competitive advantage and strong growth potential, we are assigning a ‘subscribe’ recommendation to the issue,”
MARWADI FINANCIAL SERVICES – SUBSCRIBE for long-term
Laxmi Organic IPO Subscription: Key IPO Details
|Issue Size||₹600 Cr|
|Face Value||₹2/- per Equity Share|
|IPO Price||₹129 – ₹130|
|Lot Size||115 shares|
|Lots||Min 1 – Max 13|
|2018||2019||2020 Mar||2020 Sep|
|Revenue from Ops||₹1,393.07Cr||₹1,568.52 Cr||₹1,534.12 Cr||₹814.35 Cr|
|Profit before Tax||₹113.31 Cr||₹97.59 Cr||₹55.14 Cr||₹56.20 Cr|
|Profit after Tax||₹75.70 Cr||₹72.39 Cr||₹70.21 Cr||₹45.48 Cr|
|As of March 2020||EPS||P/E (Floor)||P/E (Cap)|
|Based on basic EPS||2.86||45.45||45.10|
Comparison with listed industry peers
Laxmi Organic IPO Subscription – FAQs
1. How to apply for Laxmi Organic IPO in Retail Category?
A: An investor in retail category may either apply through the UPI process via DEMAT account or the ASBA process via bank account
2. How to apply for Laxmi Organic in HNI Category?
A: An investor can apply in HNI category only through the ASBA process via bank account
3. Where can I find the Red Herring Prospects (RHP) details?