Valuations, view & risks
Revenue diversification given presence across multiple tech-segments, huge TAM therein, deal-wins and healthy order book visibility provide greater comfort. 60%+ OCF / EBITDA conversion, superior return ratios, and strong organic growth adds to our conviction. We are factoring in 25.3%/25.6%/29.6% Revenue/EBITDA/PAT CAGR over FY24-FY27E, and value the company at 35x FY27 PE, resulting in a TP of Rs 2,020. Our base case estimates do not factor any acquisitions. Our bear case / bull-case TP is at Rs 1,270 / Rs 2,225. Key risks: Slowdown in BFSI IT spends; delay in metro projects and data centers.
Revenue diversification given presence across multiple tech-segments, huge TAM therein, deal-wins and healthy order book visibility provide greater comfort. 60%+ OCF / EBITDA conversion, superior return ratios, and strong organic growth adds to our conviction. We are factoring in 25.3%/25.6%/29.6% Revenue/EBITDA/PAT CAGR over FY24-FY27E, and value the company at 35x FY27 PE, resulting in a TP of Rs 2,020. Our base case estimates do not factor any acquisitions. Our bear case / bull-case TP is at Rs 1,270 / Rs 2,225. Key risks: Slowdown in BFSI IT spends; delay in metro projects and data centers.
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Strong R&D and new product launches a key
Aurionpro has consistently demonstrated its commitment to innovation and technological advancement through robust research and development (R&D) initiatives over the past three years. During this period, the company has invested over Rs 2.5 Bn to enhance its existing product portfolio while simultaneously developing new solutions aimed at addressing emerging market needs. This substantial investment underscores Aurionpro's strategic focus on strengthening its capabilities, improving product functionality, and ensuring its offerings remain competitive in a rapidly evolving technological landscape. Looking ahead, Aurionpro is expected to continue allocating a significant portion of its revenueโ approximately 7-8%โtoward R&D activities. This sustained investment reflects the company's dedication to fostering innovation and expanding its solution suited to cater to diverse customer requirements. In particular, Aurionpro has recently introduced two new products, Auropay and Aurobees, which were developed over the past two years. Although these products are yet to generate meaningful revenue contributions, their future growth prospects appear promising. With large total addressable markets (TAM) for both solutions, these products are expected to gain traction and start delivering substantial revenue from FY26 onwards. While many of Aurionproโs competitors are also investing heavily in R&D to enhance their offerings, Aurionproโs consistent success in securing key deal wins sets it apart. The company's ability to maintain a strong sales pipeline, coupled with a solid order book, further highlights its capacity to translate its R&D investments into real-world business outcomes. These achievements reinforce the notion that Aurionproโs strategic focus on innovation is yielding tangible results, positioning the company well for sustained growth and continued success in the industry.
Aurionpro has consistently demonstrated its commitment to innovation and technological advancement through robust research and development (R&D) initiatives over the past three years. During this period, the company has invested over Rs 2.5 Bn to enhance its existing product portfolio while simultaneously developing new solutions aimed at addressing emerging market needs. This substantial investment underscores Aurionpro's strategic focus on strengthening its capabilities, improving product functionality, and ensuring its offerings remain competitive in a rapidly evolving technological landscape. Looking ahead, Aurionpro is expected to continue allocating a significant portion of its revenueโ approximately 7-8%โtoward R&D activities. This sustained investment reflects the company's dedication to fostering innovation and expanding its solution suited to cater to diverse customer requirements. In particular, Aurionpro has recently introduced two new products, Auropay and Aurobees, which were developed over the past two years. Although these products are yet to generate meaningful revenue contributions, their future growth prospects appear promising. With large total addressable markets (TAM) for both solutions, these products are expected to gain traction and start delivering substantial revenue from FY26 onwards. While many of Aurionproโs competitors are also investing heavily in R&D to enhance their offerings, Aurionproโs consistent success in securing key deal wins sets it apart. The company's ability to maintain a strong sales pipeline, coupled with a solid order book, further highlights its capacity to translate its R&D investments into real-world business outcomes. These achievements reinforce the notion that Aurionproโs strategic focus on innovation is yielding tangible results, positioning the company well for sustained growth and continued success in the industry.
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Aurionpro Solutions Limited 600-780
Expected level 1000
Support 427
Expected level 1000
Support 427
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Laxmi Organic Industries Limited company details report
Laxmi Organic Industries Limited, incorporated in 1989 is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. It started manufacturing glacial acetic acid in 1992, and thereafter moved on to manufacturing of ethyl acetate in 1996. In Fiscal 2010, it commenced manufacturing of Specialty Intermediates by acquiring Clariantโs diketene business. The companyโs product portfolio is currently divided into three broad categories, namely the Acetyl Intermediates, Speciality Intermediates and Fluorospeciality Intermediates. a) The Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents. The company is currently amongst the largest manufacturers of ethyl acetate in India with a market share of ~30% and is the only Indian company with on ground presence in Europe for over ten years now. The acetyl products have applications in diverse industries such as pharmaceutical formulations, agrochemicals, ink & paints, coatings, packaging, adhesives and fragrance & flavour. b) The Specialty Intermediates comprises of ketene & diketene derivatives including esters, acetic anhydride, amides, and arylides. The company is the manufacturer of diketene derivatives in India with a market share of ~50%. The specialty intermediates have applications in pharmaceuticals, agrochemicals, dyes & pigments, flavour & fragrance, paints & coatings, flame redundant, and electronics.
Laxmi Organic Industries Limited, incorporated in 1989 is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. It started manufacturing glacial acetic acid in 1992, and thereafter moved on to manufacturing of ethyl acetate in 1996. In Fiscal 2010, it commenced manufacturing of Specialty Intermediates by acquiring Clariantโs diketene business. The companyโs product portfolio is currently divided into three broad categories, namely the Acetyl Intermediates, Speciality Intermediates and Fluorospeciality Intermediates. a) The Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents. The company is currently amongst the largest manufacturers of ethyl acetate in India with a market share of ~30% and is the only Indian company with on ground presence in Europe for over ten years now. The acetyl products have applications in diverse industries such as pharmaceutical formulations, agrochemicals, ink & paints, coatings, packaging, adhesives and fragrance & flavour. b) The Specialty Intermediates comprises of ketene & diketene derivatives including esters, acetic anhydride, amides, and arylides. The company is the manufacturer of diketene derivatives in India with a market share of ~50%. The specialty intermediates have applications in pharmaceuticals, agrochemicals, dyes & pigments, flavour & fragrance, paints & coatings, flame redundant, and electronics.
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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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