Upper Circuit Stock: Small-Cap Specialty Chemical Company Stock Price Locked in 20% Upper Circuit; Rs 1,100 Capital Expenditure Announced

On August 18 at 1:05 AM, the share price of Laxmi Organic Industries Ltd was trading at Rs 212.0, up by 15.86% from the previous session. Laxmi Organic Industries outpaced the broader market today, outperforming the Sensex by 5.82 per cent. The stock touched an intraday high of Rs 196.15, marking a rise of 7.27 per cent during the trading session.

Laxmi Organic Industries has outlined a total capex plan of Rs 1,100 crore for FY25–28, with Rs 800 crore allocated to its Dahej project, which is expected to achieve mechanical completion and chemical charging by Q3/Q4 FY26, followed by a ramp-up in FY27, with the midpoint of expenditure falling in FY26.

The company confirmed that the capex is progressing on time, within scope and budget. Additionally, Rs 550 crore has been earmarked for the Lote Fluoro Intermediates facility, acknowledged as having a lower asset turn but considered strategic for securing high-value contracts such as with Hitachi. Revenue contribution from FY26 is projected at 40–60 per cent of peak levels.

The Hitachi Energy SF6 replacement project is included within the Rs 1,100 crore envelope, with the contract expected to be finalised in Q2FY26. Furthermore, the company continues to invest in its innovation campus and digitization initiatives.

From a technical standpoint, the stock is trading above its 5-day, 20-day, and 100-day moving averages. However, it continues to remain below the 50-day and 200-day moving averages, reflecting a mixed trend in short- to medium-term performance.

Despite the recent upmove, Laxmi Organic Industries continues to face long-term challenges. The stock has declined 19.37 per cent year-to-date and is down by 43.30 per cent over the past three years.

About the Company

Laxmi Organic Industries Ltd was established in 1989 and is in the business of speciality chemicals. The Company primarily manufactures Ethyl Acetate, Acetic Acid and Diketene Derivative Products (DDP). DDP is a speciality 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

The company has a market cap of over Rs 5,800 crore. The company's working capital requirements have reduced from 20.3 days to 11.6 days. The stock is up by 32 per cent from its 52-week low of Rs 160.20 per share.

Disclaimer: The article is for informational purposes only and not investment advice.