Laxmi India Finance IPO Review

Laxmi India Finance 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 September 30, 2024, their operational network spans across 139 branches in rural, semi-urban and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh and Chhattisgarh. Their product portfolio includes MSME loans, vehicle loans, construction loans and other lending products catering to the diverse financial needs of their customers. 

The management team is led by the Promoter, Deepak Baid who has over 20 years’ experience in the financial services sector. The company have an experienced and dedicated management team, and they rely on their experience and commitment to help them drive the growth of the business and maintain the continuity of the organisational culture. Their management team is supported by qualified and independent directors, which provides them with robust corporate governance oversight.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 2,480.38 Million, ₹ 1,750.18 Million and ₹ 1,306.68 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,638.83 Million, ₹ 1,145.86 Million and ₹ 859.56 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 360.05 Million, ₹ 224.68 Million and ₹ 159.71 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 8.78 and post-issue EPS of ₹ 6.89 for FY24. The pre-issue P/E ratio is 17.99x, while the post-issue P/E ratio is 22.94x against the Industry P/E ratio is 82x. The company's ROE for FY24 is 15.66% and RoNW is 15.66%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Laxmi India Finance showing listing gains of 8.22 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Laxmi India Finance Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.