Laxmi Organics share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about laxmi organics share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned laxmi organics share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Laxmi Organics Share Price Target 2022, 2023, 2024, 2025, and 2030
Laxmi organics was set up nearly three decades ago with the objective of manufacturing alcohol-based chemicals. In its early days, Laxmi Organics focused primarily on the production of bulk chemicals. Subsequently, Laxmi Organics progressed up the value chain and started producing ethanol downstream, and pioneered the manufacturing of solvents in India.
Due to its high standards in quality and meticulous focus on customer satisfaction, Laxmi organics became one of the preferred partners of choice of pharmaceutical companies and ink manufacturers. In the past decade, the company has expanded its capabilities to specialty intermediates. The addition of Diketene to its product portfolio has solidified our position as a leading manufacturer of fine and specialty chemicals in the country.
In the coming years, Laxmi Organics aims to establish itself as a leader in specialty intermediates and become the growth partner of choice to global Life Sciences, Crop Sciences, and Pigments companies.
Our scale of operations and global footprint covers customers in over 30 countries including Argentina, Armenia, Austria, Belgium, China, Cyprus, the Czech Republic, France, Germany, Italy, the Netherlands, Portugal, Romania, Russia, Singapore, Spain, Sweden, the U.A.E., the U.K. and the U.S. Our international operations are supported by our offices in Leiden (Netherlands), Shanghai (China) and Sharjah (United Arab Emirates).
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Laxmi Organics Share Price Target 2022
The Company along with its sister concern Yellowstone Chemicals Private Limited (YCPL) is one of the largest global producers of Ethyl Acetate. It is also one of the largest suppliers of fuel-grade ethanol to the oil marketing companies under the oil blending program of the Government of India. The Company has a more than 1/3rd share of the Indian market in Ethyl acetate and has been the leading exporter of the product consistently over the last several years. This will have a positive impact on Laxmi Organics share price target for 2022.
The Company has a diversified customer base in India, in high-growth industries having double-digit CAGR growth. It supplies to nearly all the pharma, agro, inks, coatings, and flexible packaging players in India. Internationally, the consuming sectors are growing at high single-digit CAGR numbers. During the year the Company has exported to more than 30 countries and has been the largest exporter from India to Europe. With stock points in western and southern Europe, Laxmi is the only Indian company with a direct presence on the continent, enabling the Company to provide just in time service to its customers. The other dominant markets for the Company are the Middle East, North Africa, and South Asia.
This vertical includes the distillery operations of the Company as well. It has two in-house distilleries in Satara and Kolhapur which support both the ethyl acetate and ethanol for the oil blending businesses. During the year the Company clocked a standalone revenue (including its exports to its European subsidiary) of 9139 million against Rs 8145 million of the previous year registering a growth of 12% on the back of higher volumes and better prices. This will help Laxmi organics share price target for 2022 to achieve as fast as possible.
towards the last quarter of the financial year. The Company continuously endeavors to enhance its asset utilization by de-bottlenecking capacities on the ground. Typically, this is a moderate EBIDTA (earnings before interest, depreciation, taxes, and amortization) margin and high RoCE (return on capital employed) business for the Company given the infrastructure built over time by the Company and its ability to leverage its scale to get the best in class cost synergies. By considering all these factors, Laxmi Organics share price target for 2022 is Rs 455.
|Laxmi Organics share price target 2022|
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Laxmi Organics Share Price Target 2023
The major products of the Company in this segment are Ethyl Acetate (ETAC) and various derivatives of ethanol including ethanol supplied under the Oil Blending Program of the Government of India. There is a strong demand for ETAC across varied end-use sectors, including the pharma and agro industries, packaging, inks, and coatings.
The demand for ethanol derivatives by oil marketing companies in India, among others, for blending with fuel as an initiative for emission reduction from fossil fuel will also continue to grow as the Government of India progressively moves towards achieving a 20% blending by the year 2030. Ethanol and acetic acid are the basic raw materials used to produce ethyl acetate. Both ethanol and acetic acid are building block chemicals available in abundance. While globally acetic acid has a market size of 12.8 million tons (Frost & Sullivan), the ethanol market size is ~ 90 million tons (Alternate Fuels Data Centre, US Department of Energy). This will have a positive impact on Laxmi Organics share price target for 2023.
The geographical distribution, however, is not uniform in terms of manufacturing capacities. While the USA and Brazil remain the largest global producers of ethanol, China is the largest producer and exporter of acetic acid. India’s capacity of acetic acid is 160,000 tons and that of virgin ethanol is 3.4 million tons (Ethanol capacities, supplies, and targets: October 2020, a CARE Report). Therefore, India remains a net importer of both acetic acid and ethanol for industrial use. This will act as an opportunity for the company to grow in this segment, by considering these opportunities, Laxmi Organics share price target for 2023 is Rs 515.
|Laxmi Organics share price target for 2023|
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Laxmi Organics Share Price Target 2024
India’s specialty intermediates market stood at USD 6.6 Bn in 2019 and is projected to grow at 10.2% CAGR over the next half-decade to reach USD 10.8 Bn by 2024F. India accounts for ~ 5-6% of the global specialty intermediates market. The ketene and diketene derivatives find wide application in pharmaceuticals, agrochemicals, industrial chemicals, polymers and resins, colours and pigments, flavors and fragrances, and dyes. The Indian market for these chemicals is ~ USD 230 Mn growing at 5-7% over the last five years and is expected to grow at a similar rate till 2024F. ~ 40% of this demand is serviced through imports from the USA, China, and Europe.
Laxmi Organics is the only producer of diketene derivatives in India and has a market share of ~ 55% in India. This basket also includes some ketene derivatives. The Company moved into this vertical in 2012 by acquiring the Indian business of Clariant, a global specialty chemical major, and relocating its assets to its current site at Mahad. Since the acquisition, the revenues from SI operations have grown by ~ 500% through the introduction of twenty new products and a nearly three-fold expansion of the capacities.
SI (specialty intermediates) also caters to high-growth industries having double-digit CAGR growth in India and overseas – pharma, agro, dyes and pigments, paints and coatings, flavors and fragrance, and stabilizers for polyester and PVC players. This business gets further traction due to the changing geopolitical and supply chain scenarios and shift in the sourcing strategies of the global customers. This is a multi-product business built on multiple synergistic chemistries. The revenue and margin profile of this business is highly dependent on capacity utilization and product mix. Laxmi Organics share price target for 2024 is Rs 600.
|Laxmi Organics share price target 2024|
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Laxmi Organics Share Price Target 2025
Laxmi Organics has a focussed approach to grow in this business, both in the domestic and exports markets. The strategy is to intensify R&D initiatives, introduce newer value-added products and increase the share of contract manufactured products. As in many specialty chemicals businesses, continuous investment in re-engineering facilities and investment in new downstream facilities is a way of life. Typically, this is a high EBIDTA margin and moderate RoCE business as it is in a growth phase and the Company will continue to invest and grow this vertical.
Currently, the Company is in the process of implementing several capexes worth approximately 2000 million which are expected to come on stream towards the end of this financial year; subject, of course, to delays related to the current ongoing global and local pandemic situation. Successful implementation of the capexes will result in inter-alia, into an increase in exports and the share of the contract manufactured business of the Company.
During the year the Company clocked a standalone revenue (including its exports to its European subsidiary) of 5069 million against 4368 million of the previous year registering a growth of 16% on the back of higher volumes and improved product mix. By considering the performance of the company and the opportunities that the company has to grow in the future, Laxmi Organics share price target for 2025 is Rs 730.
|Laxmi Organics share price target 2025|
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Laxmi Organics Share Price Target 2030
There are a limited number of fluorochemicals players in India and all the major players are integrated HF manufacturers. A large portion of the Indian demand for organfluoro compounds is catered through imports of fluorinated intermediates or formulated products. The growth in this segment is expected to be a high CAGR of 16.1%, propelled by India moving towards the domestic manufacture of many actives and intermediates which are currently imported from China and other countries.
Of the 3 commercial technologies in India, nucleophilic fluorination is the most commonly used. Electrophilic ] fluorination is not preferred as it’s extremely challenging to perform due to the high reactivity of the reagents. This segment will have a huge positive impact on achieving the Laxmi organics share price target for 2030.
Laxmi Organics initiated its investment in organic fluorospecialities and electrochemical fluorination by acquiring the assets, including plant and machinery, design and operating paperwork, REACH registrations, and patents of Miteni, Spa, Italy. Currently, the Company is pursuing the following processes:
- dismantling and relocating the facility at its new site in India at Lote Parshuram, Maharashtra
- absorbing and transferring knowledge and technology
- establishing an R&D and Kilo lab facility in Italy to help us with the technology transfer and eventually function as the Company’s front end to cater to the existing and emerging needs of the innovator pharma, agro, functional and specchem companies.
The addressable universe in this chemistry space for the Company is very large and the Company is well poised to leverage its existing customer relationships, familiarity with chemistry adjacencies, and ability to handle complex chemistries and downstream synergies with diketene and acetyl chemistries. Once operational this will be the third vertical for the Company and de-risk the revenues of the Company by reducing dependency on a few raw materials and a single site operation. By considering the opportunities Laxmi Organics has to grow its business in the future, Laxmi Organics share price target for 2030 is Rs 3,100.
|Laxmi Organics share price target for 2030|
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Laxmi Organics Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Laxmi Organics Share Price Target|
|Laxmi Organics share price target 2022||Rs 455|
|Laxmi Organics share price target 2023||Rs 515|
|Laxmi Organics share price target 2024||Rs 600|
|Laxmi Organics share price target 2025||Rs 730|
|Laxmi Organics share price target 2030||Rs 3,100|
Frequently Asked Questions
What is the target for Laxmi Organics?
Laxmi organics share price target for 2022 is Rs 455, Laxmi organics share price target for 2023 is Rs 515, Laxmi organics share price target for 2024 is Rs 600, Laxmi organics share price target for 2025 is Rs 730, and Laxmi organics share price target for 2030 is Rs 3,100.
What is the future of Laxmi Organics share?
Laxmi Organics has a focussed approach to grow in this business, both in the domestic and exports markets. The strategy is to intensify R&D initiatives, introduce newer value-added products and increase the share of contract manufactured products in the near future.
Is Laxmi Organics a good buy for long term?
Yes, Laxmi organics is one of the best companies. The company is very strong in terms of financials and fundamentals. The company has shown a good profit growth of 17% over the past 3 years and the company is significantly decreased its debt by 61 crores.