Laxmi India Fin. (LAXMIINDIA)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• High ROE of 35.74% on book value of ₹87.92 indicates efficient capital use.
• Strong momentum: sales up 28.83%, profit up 63.58%, and latest quarter net profit of ₹10 Cr on sales of ₹79 Cr.
• Reasonable valuation: P/E of 11.24, P/B of 1.33, and PEG of 0.24.
• Piotroski F-Score of 7/9 suggests solid recent financial health.
• Promoter holding of 60.45% aligns management with minority shareholders.

Concerns

• High financial leverage: Debt/Equity of 2.57, typical for NBFCs but risky if asset quality weakens.
• ROCE of 13.71% is far below ROE, showing returns are leverage-flattered.
• No dividend yield at 0.00%, so minority investors depend entirely on growth and capital appreciation.
• Small market cap of ₹493 Cr and insufficient data/FairStock N/A make asset quality unverifiable.

AI Analysis

Looking at Laxmi India Fin, I see a small NBFC growing at a pace that would make many larger lenders envious. Sales grew 28.83% and profit jumped 63.58%, which shows operating leverage. The company earns a remarkable 35.74% ROE on a book value of ₹87.92, yet I can buy that book at ₹116.52, or 1.33 times book. At 11.24 times earnings and a PEG of 0.24, the market is not paying up for this growth. Mr. Market has even given me a discount from the 52-week high of ₹180.90. But I must be careful. This is a leveraged business: debt/equity is 2.57. That is normal for NBFCs, but leverage cuts both ways. The ROCE of 13.71% reminds me that the equity return is flattered by borrowed money. If asset quality deteriorates, a small NBFC with a ₹493 Cr market cap can suffer quickly. I also see zero dividend yield; I am relying entirely on management to reinvest capital wisely. Promoter holding of 60.45% is good, aligning interests, but I need to see discipline in lending. The Piotroski score of 7/9 is decent, and the latest quarter sales of ₹79 Cr with net profit of ₹10 Cr suggests momentum. However, I do not have enough data on NPAs, provisioning, or the loan mix. The FairStock score says insufficient data, and I respect that. I would not label this a wide-moat stalwart; the competitive advantage, if any, is unproven. But as a fast grower, it deserves a place on the watchlist, provided the leverage does not turn hostile. I would want to monitor how the company funds its growth and whether the 63% profit growth is coming from core operations or one-time gains. In short: good numbers, attractive valuation, but I must verify the quality of earnings before I commit.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer