Laxmi India Finance Limited

Financial Services — Credit Services · NSE

₹108.00+₹1.10 (+1.03%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Laxmi India Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Laxmi India Finance Limited, a non-banking finance company, provides financial products and services to individuals, businesses, and institutions in India.

IndustryCredit Services

SectorFinancial Services

Employees1,805

Annual revenue₹289 Cr

How does it make money?

Turns over ₹289 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 1,805 employees supports ₹16.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin27.8%

Net margin17.2%

Revenue / employee₹16.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE5.3%

ROE10.7%

Peer median ROE16.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +136% while net margin moved +32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+136%

Margin effect+32%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.8x

1.3Y Median

16.3x

16 monthly readings · mean 15.6x · range 10.4x–22.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 1.3y median of 16.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 42% below the peer median of 17.0x.

vs. its own history

Cheap

16.3x median over 16 months · -40%

vs. sector peers

Cheap

17.0x median of 4 peers · -42%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.8x

P/B

1.21x

EV/EBITDA

23.1x

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 19.9% to 27.8% over 3 years.
Valuation below its historical average
At 9.8x the stock trades 40% below its own median of 16.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 19.9% to 27.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 40% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 25% a year✓ 33.1% CAGR
Latest reported year was 47.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 10.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 16.3x✓ 9.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹566 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.8x

Cheap

Cheap against the generic band

P/B Ratio

1.21x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.01

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

2.87x

High

High leverage

Revenue Growth (YoY)

47.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹286 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹108

Operating Margin

42.3%

Good

Healthy core-business profitability

Net Margin

30.6%

Good

Strong bottom-line conversion

Current Ratio

1.14

Adequate

Adequate, but no real cushion

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

115.7 / 123.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹123 Cr	₹159 Cr	₹223 Cr	₹289 Cr	+33.1%
EBITDA	₹24 Cr	₹29 Cr	₹60 Cr	₹80 Cr	+48.7%
EBITDA Margin	19.9%	18.3%	27.1%	27.8%	—
PAT (Net Profit)	₹16 Cr	₹22 Cr	₹36 Cr	₹50 Cr	+46.1%
EPS	₹3.06	₹4.3	₹6.89	₹10.2	+49.5%
ROE	10.5%	11.1%	14.0%	10.7%	—
ROCE	4.3%	4.1%	4.8%	5.3%	—
Total Debt	₹616 Cr	₹768 Cr	₹1,139 Cr	₹1,337 Cr	+29.5%
Free Cash Flow	-₹175 Cr	-₹226 Cr	-₹315 Cr	-₹286 Cr	—

🟢 Revenue has grown at 33.1% a year over 3 years.

🟢 EBITDA has grown at 48.7% a year over 3 years.

🟢 EBITDA Margin has risen from 19.9% to 27.8% over 3 years (+7.9 pts).

🟢 PAT (Net Profit) has grown at 46.1% a year over 3 years.

🟢 EPS has grown at 49.5% a year over 3 years.

🟡 ROE has held roughly flat at 10.7% over 3 years.

🟢 ROCE has risen from 4.3% to 5.3% over 3 years (+1.0 pts).

🔴 Total Debt has grown at 29.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,818 Cr

Total Liabilities

₹1,352 Cr

Total Debt

₹1,337 Cr

Cash & Equivalents

₹42 Cr

Operating Cash Flow

-₹280 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.6%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

6 general

Compare with UGRO CAPITAL

Equitymaster, 16 Oct

Is Laxmi India Finance the Best Stock in Its Sector? A Look at the Numbers

Univest, 30 Sept

Laxmi India Finance Ltd Peer Comparison – Compare with Others

Value Research, 29 Aug

Laxmi India Finance Limited (LAXMIINDIA.NS) valuation measures and financial statistics

Yahoo Finance UK, 09 Oct

LAXMIINDIA Stock Price and Chart — NSE:LAXMIINDIA

TradingView, 06 Jul

Compare with Vardhman Holdings

Equitymaster, 14 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 25% a year33.1% CAGR
✓EBITDA margin holds above 26%27.8%
✓Return on equity stays above 9%10.7%
✓Valuation vs its own median of 16.3x9.8x today