c) The Fluoro speciality Intermediates business vertical of Laxmi Organic Industries is a highly specialized segment with complex chemistry and limited competition. Leveraging the acquisition of Miteni SpAโs Fluoro Specialities and electrochemical fluorination assets, the company has gained access to world-class technology, infrastructure, and a diverse product portfolio with over 100 offerings. With a dedicated facility in Lote-Parshuram, Maharashtra, the company is strategically positioned to establish a strong foothold in the Fluoro speciality Intermediates market. Fluoro speciality intermediates manufactured by the company will find applications in agrochemicals, cosmetics, flavours & fragrances, dyes & pigments, and in the medium to long term in electronics and automotive. The company has 50+ products and 620+ active customers. It has 4 manufacturing facilities (including two upcoming manufacturing facilities at Lote & Dahej). It expanded its scale of operations and global footprint with customers in over 52 countries including China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and United States of America.
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#SALES #GROWTH
In FY24, the consolidated sales grew by 2.6% YoY to โน2,865 cr. The growth was led by 20% YoY volume growth while price realization remained under pressure. Segment wise, the essentials segment sales grew by ~3% YoY and specialties segment sales grew by ~15% YoY. Industry wise, the agrochemical segment continues to face intense competition, and pricing in the pharma segment remains under pressure. Geography wise, the growth was led by domestic market and North America market while Europe market witnessed weak demand for products. In 9M FY25, the sales grew by 9.6% YoY to โน2,276 cr led by 15% volume growth across both business segment. Segment wise, the essentials segment sales grew by 5% YoY and specialties segment sales grew by 20% YoY. The company witnessed volume growth mainly in Q2 FY25 of 14% YoY and in Q3 FY25 of 17% YoY. The revenue from domestic stood at 64% and exports at 36% in 9M FY25.
In FY24, the consolidated sales grew by 2.6% YoY to โน2,865 cr. The growth was led by 20% YoY volume growth while price realization remained under pressure. Segment wise, the essentials segment sales grew by ~3% YoY and specialties segment sales grew by ~15% YoY. Industry wise, the agrochemical segment continues to face intense competition, and pricing in the pharma segment remains under pressure. Geography wise, the growth was led by domestic market and North America market while Europe market witnessed weak demand for products. In 9M FY25, the sales grew by 9.6% YoY to โน2,276 cr led by 15% volume growth across both business segment. Segment wise, the essentials segment sales grew by 5% YoY and specialties segment sales grew by 20% YoY. The company witnessed volume growth mainly in Q2 FY25 of 14% YoY and in Q3 FY25 of 17% YoY. The revenue from domestic stood at 64% and exports at 36% in 9M FY25.
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#EBITDA #GROWTH
In FY24, the EBITDA grew by 7% YoY to โน256 cr because of decline in power & fuel cost and other expenses. The power & fuel cost declined by 9% YoY to โน229 cr (v/s โน252 cr in FY23) led by reduced coal prices. Segment wise, the specialties segment contributed 67% (FY23: 69%) to the EBITDA and essentials segment contributes about 33% (FY23: 31%) to the EBITDA. The companyโs loss of profit insurance claim for FY22 was settled in Q4 FY24 which added โน10 cr to the EBITDA. During the year, the company witnessed supply chain challenges due to the ongoing Red Sea crisis. The companyโs key raw material are acetic acid and ethyl alcohol. The price of acetic acid is linked to crude oil prices. Similarly, the price of local ethyl alcohol, derived from sugarcane molasses, is cyclical. In 9M FY25, the EBITDA grew by 31% YoY to โน221 cr led by strong growth in both the essentials and specialties segment.
In FY24, the EBITDA grew by 7% YoY to โน256 cr because of decline in power & fuel cost and other expenses. The power & fuel cost declined by 9% YoY to โน229 cr (v/s โน252 cr in FY23) led by reduced coal prices. Segment wise, the specialties segment contributed 67% (FY23: 69%) to the EBITDA and essentials segment contributes about 33% (FY23: 31%) to the EBITDA. The companyโs loss of profit insurance claim for FY22 was settled in Q4 FY24 which added โน10 cr to the EBITDA. During the year, the company witnessed supply chain challenges due to the ongoing Red Sea crisis. The companyโs key raw material are acetic acid and ethyl alcohol. The price of acetic acid is linked to crude oil prices. Similarly, the price of local ethyl alcohol, derived from sugarcane molasses, is cyclical. In 9M FY25, the EBITDA grew by 31% YoY to โน221 cr led by strong growth in both the essentials and specialties segment.
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#PAT #GROWTH
In FY24, the PAT declined by 3.3% YoY to โน121 cr. The decline in profit was on account of increase in depreciation cost and higher effective tax rate. The depreciation cost increased by 47% YoY to โน107 cr from โน72 cr in FY23 mainly due to capitalization of two projects in subsidiary at site-2 in Mahad that came on stream in Q3 FY24 and Q4 FY24. The effective tax rate in FY24 stood at 29.4% in FY24 (v/s 27.9% in FY23). In 9M FY25, the PAT increased by 20% YoY to โน92 cr. The depreciation cost increased by 11% YoY to โน85 cr in 9M FY25 due to capitalization of assets in Lote.
In FY24, the PAT declined by 3.3% YoY to โน121 cr. The decline in profit was on account of increase in depreciation cost and higher effective tax rate. The depreciation cost increased by 47% YoY to โน107 cr from โน72 cr in FY23 mainly due to capitalization of two projects in subsidiary at site-2 in Mahad that came on stream in Q3 FY24 and Q4 FY24. The effective tax rate in FY24 stood at 29.4% in FY24 (v/s 27.9% in FY23). In 9M FY25, the PAT increased by 20% YoY to โน92 cr. The depreciation cost increased by 11% YoY to โน85 cr in 9M FY25 due to capitalization of assets in Lote.
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#EBITDA #MARGIN
In FY24, the EBITDA margin expanded by 36 bps YoY to 8.9% because of decline in power & fuel cost and other expenses. During the year, the gross margin of the company contracted by 71 bps YoY to 32.8% because of increase in raw material cost. The companyโs product ethyl acetate is a commodity product, and thus, vulnerable to volatility in raw material prices, which are governed by global supplydemand dynamics. The companyโs focus on high margin specialties products in the di-ketene derivatives and fluorochemicals segment will provide a stability to its earnings and improves its margins. In 9M FY25, the EBITDA margin expanded by 158 bps YoY to 9.7% mainly led by improvement in gross margin on account of operational efficiency. Segment wise, the essentials segment margin expanded by 88 bps YoY to 4.6% and specialties segment margin expanded by 169 bps YoY to 20.8%.
In FY24, the EBITDA margin expanded by 36 bps YoY to 8.9% because of decline in power & fuel cost and other expenses. During the year, the gross margin of the company contracted by 71 bps YoY to 32.8% because of increase in raw material cost. The companyโs product ethyl acetate is a commodity product, and thus, vulnerable to volatility in raw material prices, which are governed by global supplydemand dynamics. The companyโs focus on high margin specialties products in the di-ketene derivatives and fluorochemicals segment will provide a stability to its earnings and improves its margins. In 9M FY25, the EBITDA margin expanded by 158 bps YoY to 9.7% mainly led by improvement in gross margin on account of operational efficiency. Segment wise, the essentials segment margin expanded by 88 bps YoY to 4.6% and specialties segment margin expanded by 169 bps YoY to 20.8%.
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#ROCE
In FY24, the return on capital employed stood at 9.6%. The company has entered into fluorochemical specialty products which finds application in the pharmaceutical and agrochemical sectors. The company intend to leverage its existing relationships with customers by offering a diverse set of products while strengthening its position in the specialty chemicals segment simultaneously, it plans to reduce its dependence on commodities such as ethyl acetate.
In FY24, the return on capital employed stood at 9.6%. The company has entered into fluorochemical specialty products which finds application in the pharmaceutical and agrochemical sectors. The company intend to leverage its existing relationships with customers by offering a diverse set of products while strengthening its position in the specialty chemicals segment simultaneously, it plans to reduce its dependence on commodities such as ethyl acetate.
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#CASH #FLOWS
In FY24, the cash from operations increased to โน562 cr due to improved working capital days and efficient use of current assets. Purchase of property plant and equipment of โน247.6 cr and movement in other bank balances of โน156 cr led to cash outflow from investing activities of โน490 cr. The company reported cash outflow from financing activities of โน42 cr. This was on account of net proceeds from short term borrowings, interest, lease and dividend payment partly offset by proceeds from issue of share capital.
In FY24, the cash from operations increased to โน562 cr due to improved working capital days and efficient use of current assets. Purchase of property plant and equipment of โน247.6 cr and movement in other bank balances of โน156 cr led to cash outflow from investing activities of โน490 cr. The company reported cash outflow from financing activities of โน42 cr. This was on account of net proceeds from short term borrowings, interest, lease and dividend payment partly offset by proceeds from issue of share capital.
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#SECTOR #POTENTIAL
โข The essentials solvents business under the Acetyl Intermediates (AI) category are slated to grow at ~5-6% CAGR from 2022-2028. โข Global market for Diketene derivatives segment is around $1.7 billion and is expected to grow at ~5-6% CAGR in the next 5 years. There are multiple tailwinds driving demand for Diketene derivatives with consumer segments showing strong growth globally. Global crop protection chemicals market clocked ~$79 billion in 2022 having grown at a 9.9% over 2021. The market is expected to witness a similar growth in the next 5 years. Whereas the other important Diketene derivatives application in the pharma sector is also expected to witness a high growth of ~ 9% CAGR from $1.5 trillion in 2021 on a year-on-year basis. โข Global fluorochemicals market is growing at an attractive CAGR of 5-6% and is expected to touch $30 billion by 2025. Indian market itself for fluorochemicals is growing at a strong pace of 12% CAGR and given the increasing demand from pharmaceuticals, agrochemicals, EV and renewables applications, this growth rate could accelerate to higher levels of 12-14% over next few years. โข Indian market size is currently around $450 million and expected to reach $1 billion by FY26. There has been a tremendous surge in demand for fluorine based chemical products in the field of agrochemicals in tandem with the rise of use in pharmaceuticals. Fluorine has a special place in the toolkit of the agrochemical and pharmaceutical chemist. It has a significant impact on the biological activity of agrochemicals like fungicides, insecticides, herbicides, acaricides, and nematicides. Fluorine containing pesticides account for ~67% of the overall pesticides and over 53% of the pesticides introduced in the previous 2 decades. On the other hand, fluorine containing drugs account for ~2% of the drugs approved by FDA in the last 5 years.
โข The essentials solvents business under the Acetyl Intermediates (AI) category are slated to grow at ~5-6% CAGR from 2022-2028. โข Global market for Diketene derivatives segment is around $1.7 billion and is expected to grow at ~5-6% CAGR in the next 5 years. There are multiple tailwinds driving demand for Diketene derivatives with consumer segments showing strong growth globally. Global crop protection chemicals market clocked ~$79 billion in 2022 having grown at a 9.9% over 2021. The market is expected to witness a similar growth in the next 5 years. Whereas the other important Diketene derivatives application in the pharma sector is also expected to witness a high growth of ~ 9% CAGR from $1.5 trillion in 2021 on a year-on-year basis. โข Global fluorochemicals market is growing at an attractive CAGR of 5-6% and is expected to touch $30 billion by 2025. Indian market itself for fluorochemicals is growing at a strong pace of 12% CAGR and given the increasing demand from pharmaceuticals, agrochemicals, EV and renewables applications, this growth rate could accelerate to higher levels of 12-14% over next few years. โข Indian market size is currently around $450 million and expected to reach $1 billion by FY26. There has been a tremendous surge in demand for fluorine based chemical products in the field of agrochemicals in tandem with the rise of use in pharmaceuticals. Fluorine has a special place in the toolkit of the agrochemical and pharmaceutical chemist. It has a significant impact on the biological activity of agrochemicals like fungicides, insecticides, herbicides, acaricides, and nematicides. Fluorine containing pesticides account for ~67% of the overall pesticides and over 53% of the pesticides introduced in the previous 2 decades. On the other hand, fluorine containing drugs account for ~2% of the drugs approved by FDA in the last 5 years.
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#FUTURE #OUTLOOK
โข The company maintained its capital expenditure guidance of ~โน1,100 cr during FY24-FY28, both in the essentials and specialties segment. It includes โน800 cr at Dahej site & n-Butyl Acetate plant, โน50 cr in fluoro intermediates business, โน90 cr in Ethyl Acetate capacity addition at Lote and the rest capital expenditure at existing sites. With this capital expenditure plan, it expects to double its revenue and triple its EBITDA by FY28. โข In the essentials segments, the company would incur capital expenditure of ~โน550 cr at Dahej. It received relevant approvals for the same and construction has started. It expects revenue from Dahej to start flowing from FY26 and the peak revenue is expected by FY28. The company expects the asset turnover of ~3x-5x and EBITDA margins of ~8%-12%. โข In the specialties segment, it expects to incur a capital expenditure of ~โน550 cr. The asset turnover would be ~1x-2x and EBITDA margin of ~20%-25%. โข In the essentials segment, the company would increase its capacity by 1.75x from the current capacity of 240 KT (kilo tonne). In the specialty intermediates segment, the company is doubling the capacity of ketene & diketene derivatives. โข In n-Butyl Acetate plant at Dehej, Gujarat, the company propose capacity of 70 KTA (kilo tonnes per annum). The project will entail an investment of โน91.4 cr. It will be funded through a mix of internal accruals and debt. It is expected to be completed by Q4 FY26. โข In Ethyl Acetate at Lote, Maharashtra, the company propose capacity addition of 70 KTA. The project will entail an investment of โน90.5 cr. It will be funded through a mix of internal accruals and debt. Currently, the company has existing capacity of 200 KTA with capacity utilization of more than 90%. It is expected to be completed by Q4 FY26.
โข The company maintained its capital expenditure guidance of ~โน1,100 cr during FY24-FY28, both in the essentials and specialties segment. It includes โน800 cr at Dahej site & n-Butyl Acetate plant, โน50 cr in fluoro intermediates business, โน90 cr in Ethyl Acetate capacity addition at Lote and the rest capital expenditure at existing sites. With this capital expenditure plan, it expects to double its revenue and triple its EBITDA by FY28. โข In the essentials segments, the company would incur capital expenditure of ~โน550 cr at Dahej. It received relevant approvals for the same and construction has started. It expects revenue from Dahej to start flowing from FY26 and the peak revenue is expected by FY28. The company expects the asset turnover of ~3x-5x and EBITDA margins of ~8%-12%. โข In the specialties segment, it expects to incur a capital expenditure of ~โน550 cr. The asset turnover would be ~1x-2x and EBITDA margin of ~20%-25%. โข In the essentials segment, the company would increase its capacity by 1.75x from the current capacity of 240 KT (kilo tonne). In the specialty intermediates segment, the company is doubling the capacity of ketene & diketene derivatives. โข In n-Butyl Acetate plant at Dehej, Gujarat, the company propose capacity of 70 KTA (kilo tonnes per annum). The project will entail an investment of โน91.4 cr. It will be funded through a mix of internal accruals and debt. It is expected to be completed by Q4 FY26. โข In Ethyl Acetate at Lote, Maharashtra, the company propose capacity addition of 70 KTA. The project will entail an investment of โน90.5 cr. It will be funded through a mix of internal accruals and debt. Currently, the company has existing capacity of 200 KTA with capacity utilization of more than 90%. It is expected to be completed by Q4 FY26.
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Laxmi Organic Industries 120-170
Expected level 230
Support 100
Expected level 230
Support 100
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
CEAT Limited 2590-2890 Expected level 3600 Support 2250
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Hereโs a breakdown of common red flags that were visible before these companies collapsed:
---
### 1. Kingfisher Airlines
- Red Flags:
- High debt-to-equity ratio
- Continuous losses
- Promoter pledged shares
- Lavish branding and PR vs. weak financials
- Failed business model in a low-margin industry (aviation)
---
### 2. Sintex Industries
- Red Flags:
- Aggressive expansion with too much debt
- Poor corporate governance
- Delays in results and poor disclosures
- Financials deteriorating long before NCLT admission
---
### 3. Suzlon Energy
- Red Flags:
- Debt pile-up due to global acquisitions (like REpower)
- Inconsistent profitability
- Management overpromised, underdelivered
- Repeated dilution of equity
---
### 4. PC Jeweller
- Red Flags:
- Related-party transactions (with Vakrangee, another suspicious stock)
- Promoter selling shares
- Accounting quality issues
- Weak internal controls
---
### 5. Yes Bank
- Red Flags:
- Aggressive lending, especially to risky borrowers
- Evergreening of loans
- RBI red-flagged practices, removed CEO
- High gross NPA in disguise
---
### 6. Manpasand Beverages
- Red Flags:
- Auditor resignations
- Lack of big distributors despite strong "sales" figures
- Dubious capex, questionable numbers
- Sudden stock crashes with no clear news (classic operator sign)
---
### 7. DHFL (Dewan Housing Finance Ltd)
- Red Flags:
- Promoter funding through shell companies (Cobrapost expose)
- Credit rating agencies slow to react
- High share of promoter-pledged shares
- Delays in repayments and poor liquidity management
---
### 8. Gensol Engineering
- Red Flags:
- Low float, highly operator-driven
- Skyrocketing prices without matching fundamentals
- Sudden inclusion in retail momentum portfolios
- No long-term earnings visibility or scalability
---
### Common Red Flags Across All:
1. High Debt
2. Corporate Governance Issues
3. Auditor Resignation / Reshuffling
4. Promoter Share Pledging / Selling
5. Inconsistent Cash Flows vs. PAT
6. Overambitious Announcements Without Execution
7. Unnatural Stock Price Movements
8. **Unclear Business Models or Dubious Subsidiaries
---
### 1. Kingfisher Airlines
- Red Flags:
- High debt-to-equity ratio
- Continuous losses
- Promoter pledged shares
- Lavish branding and PR vs. weak financials
- Failed business model in a low-margin industry (aviation)
---
### 2. Sintex Industries
- Red Flags:
- Aggressive expansion with too much debt
- Poor corporate governance
- Delays in results and poor disclosures
- Financials deteriorating long before NCLT admission
---
### 3. Suzlon Energy
- Red Flags:
- Debt pile-up due to global acquisitions (like REpower)
- Inconsistent profitability
- Management overpromised, underdelivered
- Repeated dilution of equity
---
### 4. PC Jeweller
- Red Flags:
- Related-party transactions (with Vakrangee, another suspicious stock)
- Promoter selling shares
- Accounting quality issues
- Weak internal controls
---
### 5. Yes Bank
- Red Flags:
- Aggressive lending, especially to risky borrowers
- Evergreening of loans
- RBI red-flagged practices, removed CEO
- High gross NPA in disguise
---
### 6. Manpasand Beverages
- Red Flags:
- Auditor resignations
- Lack of big distributors despite strong "sales" figures
- Dubious capex, questionable numbers
- Sudden stock crashes with no clear news (classic operator sign)
---
### 7. DHFL (Dewan Housing Finance Ltd)
- Red Flags:
- Promoter funding through shell companies (Cobrapost expose)
- Credit rating agencies slow to react
- High share of promoter-pledged shares
- Delays in repayments and poor liquidity management
---
### 8. Gensol Engineering
- Red Flags:
- Low float, highly operator-driven
- Skyrocketing prices without matching fundamentals
- Sudden inclusion in retail momentum portfolios
- No long-term earnings visibility or scalability
---
### Common Red Flags Across All:
1. High Debt
2. Corporate Governance Issues
3. Auditor Resignation / Reshuffling
4. Promoter Share Pledging / Selling
5. Inconsistent Cash Flows vs. PAT
6. Overambitious Announcements Without Execution
7. Unnatural Stock Price Movements
8. **Unclear Business Models or Dubious Subsidiaries
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Info Edge (India) company details report
Info Edge (India) incorporated in 1995, has two specific arms โ an operational business and an investment business. The core business verticals includes recruitment solutions, real estate services, matrimonial services and an education services through its various web portals and mobile applications. The core activities are supported by a series of strategic investments in the operating business. These investments are primarily made into services & products, that complement and form an integral part of the developmental roadmap of the four core business platforms. The investment business also includes a series of fund infusions into diversified entities, that have significant value creation potential over a period. Business portfolio: โข Recruitment: Online recruitment classifieds, www .naukri.com, a clear market leader in the Indian e-recruitment space, www .naukrigulf.com, a job site focused in the Middle East market, offline executive search (www .quadranglesearch.com) and a fresher hiring site (www .firstnaukri.com). Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing. โข Matrimony: Online matrimony classifieds (www .jeevansathi.com) is in the top three of Indiaโs online matrimonial space and has offline Jeevansathi Match Points and franchisees. โข Real Estate: Online real estate classifieds (www .99acres.com) is Indiaโs largest property marketplace covering almost all the major cities and many agents and developers. โข Education: Online education classifieds (www.shiksha.com) is the smartest gateway for students to achieve their higher education goals.
Info Edge (India) incorporated in 1995, has two specific arms โ an operational business and an investment business. The core business verticals includes recruitment solutions, real estate services, matrimonial services and an education services through its various web portals and mobile applications. The core activities are supported by a series of strategic investments in the operating business. These investments are primarily made into services & products, that complement and form an integral part of the developmental roadmap of the four core business platforms. The investment business also includes a series of fund infusions into diversified entities, that have significant value creation potential over a period. Business portfolio: โข Recruitment: Online recruitment classifieds, www .naukri.com, a clear market leader in the Indian e-recruitment space, www .naukrigulf.com, a job site focused in the Middle East market, offline executive search (www .quadranglesearch.com) and a fresher hiring site (www .firstnaukri.com). Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing. โข Matrimony: Online matrimony classifieds (www .jeevansathi.com) is in the top three of Indiaโs online matrimonial space and has offline Jeevansathi Match Points and franchisees. โข Real Estate: Online real estate classifieds (www .99acres.com) is Indiaโs largest property marketplace covering almost all the major cities and many agents and developers. โข Education: Online education classifieds (www.shiksha.com) is the smartest gateway for students to achieve their higher education goals.
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