Laxmi India Finance Limited

Laxmi India Finance Limited is a non-deposit taking non-banking financial company focused on serving the financial needs of underserved customers in India’s lending market. As on March 31, 2025, the operational network spans across 158 branches in rural, semi-urban and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh. The product portfolio includes MSME loans, vehicle loans, construction loans and other lending products catering to the diverse financial needs of the customers. Their over 80% of the MSME loans qualifying as Priority Sector Lending under RBI guidelines. As of March 31, 2025, the assets under management (AUM) stood at Rs 12,770.18 million with the MSME and vehicle loan verticals contributing 76.34% and 16.12%, respectively. As on March 31, 2025, the customer base comprises 35,568 customers, including 18,596 active MSME customers and 12,423 active vehicle loan customers, demonstrating a growth of 48.78% from 23,906 customers as on March 31, 2024. The branch network has grown steadily from 119 as of March 31, 2023 to 135 as of March 31, 2024 to 158 as of March 31, 2025. The AUM increased from Rs 6,867.67 million as of March 31, 2023 to 12,770.18 million as of March 31, 2025, representing a CAGR of 36.36%. The growth in the AUM was primarily driven by an increase in volume of the loans due to increase in the disbursement to Rs 7185.34 million in March 31,2025 from Rs 5,254.28 million in March 31, 2024 from Rs 3,432.91 million in March 31, 2023 and also increase in the branch network. The MSME AUM grew at a CAGR of 36.52% between March 31, 2023 and March 31, 2025 and the vehicle financing AUM grew at a CAGR of 47.23%. Company has diversified sources of funding and have access to funds from 47 lenders, including 8 public sector banks, 10 private banks, 7 small finance banks, 22 non-banking financial companies and financial institutions as of March 31, 2025. They raise debt through several instruments such as term loans from public sector banks and private banks, non-convertible debentures (NCDs), working capital demand loans and overdrafts against fixed deposits. As per financial performance, Laxmi India Finance Limited has posted total income / net profits of Rs 130.67 Cr / 15.97 Cr (FY23), Rs 175.02 Cr / Rs 22.47 Cr (FY24) and Rs 248.04 Cr / 36.01 Cr (FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 7.11 and average RoNW of 14.01% for last three fiscals. Issue is priced at a P/BV of 2.57 as per NAV of Rs 61.57/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 37.51, 27.87 and 22.94 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, PL Capital Markets Private Limited is associated with this IPO, and have handled one IPO in last three fiscals. The only IPO opened above issue price and currently trading above issue price. ( As on 22.07.25 ) As per financials, Laxmi India Finance Limited has shown good growth, RoNW is 15.66% and P/E is 37.51, 27.87 and 22.94 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Company is an NBFC in India, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

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