NSEI:LFIC

Stock Analysis Report

Lakshmi Finance & Industrial

Executive Summary

Lakshmi Finance & Industrial Corporation Limited, a non-banking finance company, invests in equity shares and mutual funds in India.


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Lakshmi Finance & Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LFIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

LFIC

1.9%

IN Capital Markets

-1.2%

IN Market


1 Year Return

-38.7%

LFIC

10.6%

IN Capital Markets

6.4%

IN Market

Return vs Industry: LFIC underperformed the Indian Capital Markets industry which returned 10.6% over the past year.

Return vs Market: LFIC underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

LFICIndustryMarket
7 Day-0.3%1.9%-1.2%
30 Day-3.8%1.1%-3.6%
90 Day-4.7%13.0%-0.5%
1 Year-36.0%-38.7%12.3%10.6%8.4%6.4%
3 Year-14.4%-24.9%-2.9%-6.6%20.9%14.3%
5 Year185.6%118.5%13.9%6.4%29.8%18.0%

Price Volatility Vs. Market

How volatile is Lakshmi Finance & Industrial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lakshmi Finance & Industrial undervalued compared to its fair value and its price relative to the market?

7.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LFIC (₹51.35) is trading above our estimate of fair value (₹21.42)

Significantly Below Fair Value: LFIC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LFIC is good value based on its PE Ratio (7.2x) compared to the Capital Markets industry average (11.2x).

PE vs Market: LFIC is good value based on its PE Ratio (7.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LFIC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LFIC is good value based on its PB Ratio (0.4x) compared to the IN Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Lakshmi Finance & Industrial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.2%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lakshmi Finance & Industrial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lakshmi Finance & Industrial performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LFIC has high quality earnings.

Growing Profit Margin: LFIC's current net profit margins (62.8%) are lower than last year (63.5%).


Past Earnings Growth Analysis

Earnings Trend: LFIC's earnings have declined by -17.3% per year over the past 5 years.

Accelerating Growth: LFIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LFIC had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the Capital Markets industry average (-5.6%).


Return on Equity

High ROE: LFIC's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lakshmi Finance & Industrial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LFIC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LFIC's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: LFIC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LFIC has a sufficient allowance for bad loans.

Low Risk Liabilities: LFIC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LFIC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LFIC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LFIC has an appropriate level of bad loans.


Next Steps

Dividend

What is Lakshmi Finance & Industrial's current dividend yield, its reliability and sustainability?

4.87%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%0.6%markettop25%2.6%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: LFIC's dividend (4.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: LFIC's dividend (4.87%) is in the top 25% of dividend payers in the Indian market (2.63%)


Stability and Growth of Payments

Stable Dividend: LFIC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LFIC has only been paying a dividend for 8 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), LFIC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.4yrs

Average board tenure


CEO

Kanuri Prasad (67yo)

₹7,711,023

Compensation

Mr. Kanuri Harishchandra Prasad, MBA, MS serves as Managing Director of Lakshmi Finance & Industrial Corporation Ltd. and serves as its Compliance Officer since August 09, 2019. Mr. Prasad has years of bus ...


CEO Compensation Analysis

Compensation vs Market: Kanuri's total compensation ($USD107.36K) is above average for companies of similar size in the Indian market ($USD49.94K).

Compensation vs Earnings: Kanuri's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kanuri Prasad
MD, Compliance Officer & Executive Director0yrs₹7.71m3% 4.9m
Ramasahayam Reddy
Independent Non Executive Director51.3yrs₹43.00k0.20% 332.8k
Kapil Bhatia
Independent Non Executive Director40.8yrs₹20.00k0.025% 40.1k
Madhurika Venkat
Independent Non-Executive Director4.8yrs₹33.00kno data
Keshav Bhupal
Independent Non-Executive Director6yrs₹43.00k0.11% 178.9k
Kanuri Prasad
Non-Executive Director6yrs₹40.00k2.7% 4.4m

20.4yrs

Average Tenure

66yo

Average Age

Experienced Board: LFIC's board of directors are seasoned and experienced ( 20.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lakshmi Finance & Industrial Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lakshmi Finance & Industrial Corporation Limited
  • Ticker: LFIC
  • Exchange: NSEI
  • Founded: 1923
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: ₹162.600m
  • Shares outstanding: 3.00m
  • Website: https://www.lakshmifinance.org

Number of Employees


Location

  • Lakshmi Finance & Industrial Corporation Limited
  • Suryodaya 1-10-60/3
  • 1st Floor
  • Hyderabad
  • Andhra Pradesh
  • 500016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFICNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2010

Biography

Lakshmi Finance & Industrial Corporation Limited, a non-banking finance company, invests in equity shares and mutual funds in India. The company was formerly known as The Andhra Bank Ltd. and changed its name to Lakshmi Finance & Industrial Corporation Limited in April 1980. Lakshmi Finance & Industrial Corporation Limited was incorporated in 1923 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:09
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.