Check Before You Invest : Laxmi India Finance Ltd

Q: Which industry/sub-sector does Laxmi India Finance Ltd belong to?

Laxmi India Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Laxmi India Finance Ltd a good quality company?

Laxmi India Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Laxmi India Finance Ltd undervalued or overvalued?

Laxmi India Finance Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 18.86, Historic Median: 17.97. Price to Book, Current: 1.52, Historic Median: 1.41. Price to Sales, Current: 2.76, Historic Median: 2.63. EV to EBITDA, Current: 9.3, Historic Median: 9.12

Q: Is Laxmi India Finance Ltd a good buy now?

Laxmi India Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Operating Income growth is 41.92% for FY-2025, which is above its 3-year CAGR of 36.04%, indicating faster growth.

Q: Return on Assets of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Return on Asset is 3%, which is above its 3-year historical median of 2.6%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 14.65, Historic Median: 12.98. PPOP (%), Current: 76.47, Historic Median: 36. RoA (%), Current: 3, Historic Median: 2.6

Q: Return on Equity (ROE) of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Return on Equity is 15.7% for FY-2025, which is above its 3-year historical median of 12.7%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 76.47% for FY-2025, which is above its 3-year median(36%), indicating increasing margins.

Q: Net Profit Margin of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 14.65% for FY-2025, which is above its 3-year median( 12.98%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Laxmi India Finance Ltd return on invested capital (ROIC) is 9.84% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Laxmi India Finance Ltd

BSE: 544465 NSE: LAXMIINDIA ISIN: INE06WU01026

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Laxmi India Finance Ltd belong to?

Laxmi India Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Laxmi India Finance Ltd a good quality company?

Laxmi India Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Laxmi India Finance Ltd undervalued or overvalued?

Laxmi India Finance Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	3-year Historic Median
Price to Earnings	18.86	17.97
Price to Book	1.52	1.41
Price to Sales	2.76	2.63
EV to EBITDA	9.3	9.12

Q.4 Is Laxmi India Finance Ltd a good buy now?

Laxmi India Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Operating Income growth is 41.92% for FY-2025, which is above its 3-year CAGR of 36.04%, indicating faster growth.

Q.2 Return on Assets of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Return on Asset is 3%, which is above its 3-year historical median of 2.6%, indicating improved earnings on assets.

	Current Level	3-year Historic Median
NPM (%)	14.65	12.98
PPOP (%)	76.47	36
RoA (%)	3	2.6

Q.3 Return on Equity (ROE) of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Return on Equity is 15.7% for FY-2025, which is above its 3-year historical median of 12.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 76.47% for FY-2025, which is above its 3-year median(36%), indicating increasing margins.

Q.5 Net Profit Margin of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 14.65% for FY-2025, which is above its 3-year median( 12.98%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Laxmi India Finance Ltd return on invested capital (ROIC) is 9.84% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Total Asset growth is -0.2% for FY-2025, which is below its 3-year CAGR of 36.3%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Capital Adequacy ratio (CAR) is 20.8% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.9 Asset Quality of Laxmi India Finance Ltd?

Laxmi India Finance Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.07% for FY-2025, which is above its 3-year median 0.73%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.48% which is above its 3-year median( 0.33%), indicating deteriorating asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Laxmi India Finance Ltd?

Q.1 Promoter shareholding and pledge status of Laxmi India Finance Ltd?

Promoters hold 60.31% of the Laxmi India Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Laxmi India Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Laxmi India Finance Ltd vs Industry Peers?

Laxmi India Finance Ltd AUM CAGR is 36.3%, compared to the 3-year industry median CAGR of 9.69%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Laxmi India Finance Ltd vs industry peers

Laxmi India Finance Ltd profit metrics are in line with the industry median level of 4.9%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM (%)	14.65	13.26
PPOP (%)	76.47	-
RoA (%)	3	1.45

Q.3 Operating efficiency of Laxmi India Finance Ltd vs industry peers?

Laxmi India Finance Ltd ROCE (13) is above the industry median of (4.4); while the current ROE (12.7) are above than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM (%)	14.65	13.26
PPOP (%)	76.47	-
RoA (%)	3	1.45
ROCE (%)	13.7	4.4
ROE (%)	15.7	2.2

Valuation & price assessment

Q.1 Stock return of Laxmi India Finance Ltd over the last decade?

Over the last - years, the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	18.86	17.97	26.37
Price to Book	1.52	1.41	1.23
Price to Sales	2.76	2.63	9.57
EV to EBITDA	9.3	9.12	11.03

Q.3 Valuation ratios of Laxmi India Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.52 is higher than its historical median of 1.41, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Laxmi India Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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