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Shares of Laxmi Organic Industries surged 8 per cent to hit a new high of Rs 414.05 on the BSE in intra-day trade on Friday in an otherwise range-bound market. The speciality chemicals company’s stock was trading at the highest level since its listing on March 25, 2021. In the past three weeks, the market price of Laxmi Organics has soared 52 per cent after the company delivered a robust financial performance for the quarter ended June 2021 (Q1FY22). With the past three weeks’ rally, the stock has zoomed 219 per cent against its issue price of Rs 130 per share.
Laxmi Organic Industries is a leading manufacturer of acetyl intermediates and speciality intermediates. Its products are currently divided into two broad categories viz. acetyl intermediates and speciality intermediates. Acetyl intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents, while speciality intermediates comprise ketene, diketene derivatives viz. esters, acetic anhydride, amides, arylides and other chemicals.
In Q1FY22, the company’s consolidated operating revenues grew 82 per cent year-on-year (YoY) to Rs 736 crore.
The strong revenue growth was fueled by the increase in acetyl intermediates (AI) and speciality intermediates (SI).
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The robust performance in the AI business was attributable to higher realisations, whereas the SI business was driven by both volume and pricing. The demand from end-user industries also remained strong.
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