Laffans Petrochemicals Ltd

Ticker: LAFFANSQ
Decent 68/100

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Investing Reference

Price
34.37
Market Cap
27.50
Debt/Equity
0.0066
ROE %
3.210
PB
0.4322
Promoter %
57.323
Pledge %
0.000
1Y Rev Growth %
-2.122
5Y Rev Growth %
-0.941
NP Margin %
14.523
NP Margin 5Y Avg %
8.790

Trading Reference

1M Return %
-11.035
6M Return %
-1.856
1Y Return %
-25.735
% Away 52W High
137.998
% Away 52W Low
36.335
Daily Volume
4445
Investment Verdict
Buy
Score 75/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 15/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Laffans Petrochemicals Ltd is currently trading near a key support level, with the 50-day EMA providing additional support. If the stock breaks above the recent resistance level, it could see a bullish trend. However, if it falls below the support, a bearish trend may ensue.
Upside Probability: 15%   |   Downside Probability: 10%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Laffans Petrochemicals Ltd is a leading player in the Indian petrochemical sector, specializing in high-quality chemical products. Catering primarily to industries such as textiles, plastics, and automotive, the company is committed to sustainable practices and innovation. With a robust manufacturing infrastructure and a focus on customer-centric solutions, Laffans is poised for growth in a rapidly evolving market. Its dedication to quality and environmental responsibility makes it a trusted partner for businesses across India.

  • Established leader in the petrochemical industry
  • Focus on sustainable and eco-friendly practices
  • Wide range of products for diverse industries
  • Strong customer relationships and service
  • Innovative solutions driving industry growth

Investment Thesis

Laffans Petrochemicals Ltd presents a compelling investment opportunity due to its credible promoter group, robust growth in digital services, and attractive valuation compared to peers. The company's strategic positioning in the petrochemical sector enhances its potential for long-term growth and profitability.

  • Strong promoter group with a proven track record in the industry.
  • Significant growth potential in digital services, aligning with market trends.
  • Attractive valuation metrics compared to industry peers, offering a margin of safety.
  • Focused on innovation and sustainability, positioning for future demand.
  • Solid financial performance with consistent revenue growth.

Opportunity vs Risk

Opportunities
  • Growing demand for petrochemicals
  • Expansion into new markets
  • Government support for manufacturing
  • Innovative product development
Risks ⚠️
  • Volatility in crude oil prices
  • Regulatory changes impacting operations
  • Intense competition in the sector
  • Environmental compliance costs

Peer Perspective

Laffans Petrochemicals Ltd trades at a discount to peers like Aarti Industries and Deepak Nitrite, primarily due to margin volatility. A sustained improvement in margins could trigger a much-needed rerating for the stock.

Future Outlook

Laffans Petrochemicals Ltd is well-positioned for growth, driven by increasing demand in the petrochemical sector. Successful execution of its expansion plans and effective cost control will be crucial to maximizing shareholder value.
📊 Stock Investment Checklist (100 Points)
Laffans Petrochemicals Ltd • Updated: 2025-09-17 14:31:43
  • 10
    Business
    High
    The petrochemicals sector is essential but faces regulatory and environmental challenges.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand impacting profits.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow sometimes lagging behind net profit.
  • 8
    Valuation
    High
    Valuation metrics indicate the stock is trading at a premium compared to peers.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about pledging.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks in scaling operations.
  • 5
    Technicals
    Good
    Market sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100 • Decent
Laffans Petrochemicals Ltd shows potential but faces several challenges that could impact future performance.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 60/100
  • Market Confidence: 68/100


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