(Because even glue companies don’t stick as fast as this balance sheet grows)
1. At a Glance
The market decided to give Laxmi India Finance a -7.61% price haircut on 11 August 2025 — maybe because the promoters trimmed their holding by a dramatic 28.6% last quarter. This ₹777 crore NBFC runs with a P/E of 21.6, delivers 66% operating margins (yes, NBFC OPMs are a different beast), and is clocking 42% TTM sales growth. Borrowings have shot up from ₹391 crore in FY21 to ₹1,137 crore in FY25, but hey — it’s finance, leverage is part of the starter pack.
2. Introduction
Founded in 1996, Laxmi India Finance Ltd (LIFL) is the financial equivalent of your aggressive cousin who started with a scooter loan business and now runs a mini-loan empire. A non-deposit taking NBFC, it lends to individuals, businesses, and institutions — basically anyone who can pass their credit filters without triggering an RBI visit.
Over the last three years, sales have compounded at 36% CAGR, and PAT at 35% CAGR, making it one of those small-cap lenders that could either grow into a regional powerhouse… or overheat faster than a Bajaj Chetak on a highway.
3. Business Model (WTF Do They Even Do?)
Being a Non-Deposit Taking NBFC, their business is straightforward — borrow money
from banks/markets, lend it out at higher rates, pocket the spread, and pray defaults don’t spike.
- Products: Likely includes vehicle loans, SME loans, personal finance, and maybe some higher-yield niche lending.
- Customers: Individuals, small businesses, and possibly semi-urban entrepreneurs.
- Revenue Model: Interest income minus borrowing costs = NIM (Net Interest Margin). With 66% OPM, they’re clearly running a high-yield portfolio.
The real game here is risk management. One bad loan book cycle, and those juicy margins turn into “why did we give that guy money” regret.
4. Financials Overview
TTM Sales: ₹246 Cr
TTM Net Profit: ₹36 Cr
EPS (FY25): ₹8.61
P/E: 21.6
ROE: 15.7%
ROCE: 13.7%
Quarterly trend is spicy: Q4 FY25 PAT ₹15 Cr vs ₹6 Cr in Q3 — that’s +150% QoQ. But interest costs are ballooning: ₹50 Cr (FY21) → ₹115 Cr (FY25).
5. Valuation (Fair Value
