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Lakshmi Finance & Industrial

NSEI:LFIC
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LFIC
NSEI
₹225M
Market Cap
  1. Home
  2. IN
  3. Diversified Financials
Company description

Lakshmi Finance & Industrial Corporation Limited operates as a non-banking finance company that engages in the investment of equity shares and mutual funds in India. The last earnings update was 69 days ago. More info.


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LFIC Share Price and Events
7 Day Returns
-2%
NSEI:LFIC
0.4%
IN Capital Markets
1.7%
IN Market
1 Year Returns
-14.1%
NSEI:LFIC
-27.9%
IN Capital Markets
0.1%
IN Market
LFIC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lakshmi Finance & Industrial (LFIC) -2% -6.3% -13.7% -14.1% 127.3% 210.6%
IN Capital Markets 0.4% 3.5% -1.7% -27.9% 59.2% 139%
IN Market 1.7% 2.7% 5.8% 0.1% 41.6% 73.3%
1 Year Return vs Industry and Market
  • LFIC outperformed the Capital Markets industry which returned -27.9% over the past year.
  • LFIC underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
LFIC
Industry
5yr Volatility vs Market

LFIC Value

 Is Lakshmi Finance & Industrial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lakshmi Finance & Industrial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lakshmi Finance & Industrial.

NSEI:LFIC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ₹129.14 * 9.2%
₹11.85
Book Value of Equity per Share Median Book Value from the past 5 years. ₹129.14
Discount Rate (Cost of Equity) See below 14.6%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:LFIC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.734 (1 + (1- 35%) (0%))
0.822
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.822 * 8.6%)
14.62%

Discounted Cash Flow Calculation for NSEI:LFIC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Lakshmi Finance & Industrial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:LFIC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.2% – 14.62%) * ₹129.14)
₹-7.02
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹-7.02 / (14.62% - 7.55%)
₹-99.37
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹129.14 + ₹-99.37
₹29.77
NSEI:LFIC Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹29.77
Current discount Discount to share price of ₹75.00
= -1 x (₹75.00 - ₹29.77) / ₹29.77
-152%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lakshmi Finance & Industrial is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lakshmi Finance & Industrial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lakshmi Finance & Industrial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:LFIC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹7.76
NSEI:LFIC Share Price ** NSEI (2019-04-16) in INR ₹75
India Capital Markets Industry PE Ratio Median Figure of 171 Publicly-Listed Capital Markets Companies 14.86x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lakshmi Finance & Industrial.

NSEI:LFIC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:LFIC Share Price ÷ EPS (both in INR)

= 75 ÷ 7.76

9.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lakshmi Finance & Industrial is good value based on earnings compared to the IN Capital Markets industry average.
  • Lakshmi Finance & Industrial is good value based on earnings compared to the India market.
Price based on expected Growth
Does Lakshmi Finance & Industrial's expected growth come at a high price?
Raw Data
NSEI:LFIC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
1.9%per year
India Capital Markets Industry PEG Ratio Median Figure of 12 Publicly-Listed Capital Markets Companies 1.58x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Lakshmi Finance & Industrial, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lakshmi Finance & Industrial's assets?
Raw Data
NSEI:LFIC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹137.33
NSEI:LFIC Share Price * NSEI (2019-04-16) in INR ₹75
India Capital Markets Industry PB Ratio Median Figure of 267 Publicly-Listed Capital Markets Companies 0.69x
India Market PB Ratio Median Figure of 3,626 Publicly-Listed Companies 1.12x
NSEI:LFIC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:LFIC Share Price ÷ Book Value per Share (both in INR)

= 75 ÷ 137.33

0.55x

* Primary Listing of Lakshmi Finance & Industrial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lakshmi Finance & Industrial is good value based on assets compared to the IN Capital Markets industry average.
X
Value checks
We assess Lakshmi Finance & Industrial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Lakshmi Finance & Industrial has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LFIC Future Performance

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

  • No analysts cover Lakshmi Finance & Industrial, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lakshmi Finance & Industrial expected to grow at an attractive rate?
  • Lakshmi Finance & Industrial's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Lakshmi Finance & Industrial's earnings growth is positive but not above the India market average.
  • Unable to compare Lakshmi Finance & Industrial's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:LFIC Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:LFIC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 1.9%
India Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 15%
India Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 21.3%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:LFIC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:LFIC Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 37 23
2018-09-30 47 32
2018-06-30 53 38
2018-03-31 61 -40 46
2017-12-31 58 45
2017-09-30 49 38
2017-06-30 46 36
2017-03-31 41 -11 31
2016-12-31 36 25
2016-09-30 38 28
2016-06-30 39 30
2016-03-31 45 -30 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lakshmi Finance & Industrial's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Lakshmi Finance & Industrial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:LFIC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Lakshmi Finance & Industrial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LFIC Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 7.76
2018-09-30 10.72
2018-06-30 12.56
2018-03-31 15.39
2017-12-31 15.01
2017-09-30 12.67
2017-06-30 11.86
2017-03-31 10.49
2016-12-31 8.44
2016-09-30 9.22
2016-06-30 9.84
2016-03-31 12.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Lakshmi Finance & Industrial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Lakshmi Finance & Industrial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lakshmi Finance & Industrial has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LFIC Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lakshmi Finance & Industrial's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lakshmi Finance & Industrial's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Lakshmi Finance & Industrial's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lakshmi Finance & Industrial's 1-year earnings growth is negative, it can't be compared to the IN Capital Markets industry average.
Earnings and Revenue History
Lakshmi Finance & Industrial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lakshmi Finance & Industrial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LFIC Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 36.67 23.30 14.73
2018-09-30 46.54 32.23 13.95
2018-06-30 52.77 37.73 13.23
2018-03-31 61.19 46.18 12.53
2017-12-31 57.68 45.01 9.88
2017-09-30 49.03 37.97 9.69
2017-06-30 46.15 35.56 9.40
2017-03-31 41.21 31.46 9.11
2016-12-31 36.31 25.33 8.75
2016-09-30 38.42 27.67 8.43
2016-06-30 39.01 29.53 8.28
2016-03-31 45.46 36.30 8.08
2015-12-31 58.97 42.94 10.42
2015-09-30 63.72 48.22 10.22
2015-06-30 71.66 56.14 10.12
2015-03-31 65.24 50.00 7.22
2014-12-31 69.68 51.52 8.22
2014-09-30 55.16 39.40 7.92
2014-06-30 41.48 22.25 5.60
2014-03-31 45.19 13.49 7.55
2013-12-31 36.21 10.41 5.39
2013-09-30 36.27 15.91 5.33
2013-06-30 31.16 7.05 5.27
2013-03-31 39.39 4.61 5.26
2012-12-31 -13.65 -5.92 5.28
2012-09-30 -8.33 -13.79 5.30
2012-06-30 -5.00 -5.97 5.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lakshmi Finance & Industrial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lakshmi Finance & Industrial used its assets more efficiently than the IN Capital Markets industry average last year based on Return on Assets.
  • Lakshmi Finance & Industrial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lakshmi Finance & Industrial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lakshmi Finance & Industrial has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LFIC Health

 How is Lakshmi Finance & Industrial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lakshmi Finance & Industrial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lakshmi Finance & Industrial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lakshmi Finance & Industrial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lakshmi Finance & Industrial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Lakshmi Finance & Industrial has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lakshmi Finance & Industrial Company Filings, last reported 3 months ago.

NSEI:LFIC Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 413.13 0.00 60.07
2018-09-30 413.13 0.00 60.07
2018-06-30 420.95 0.00 59.93
2018-03-31 420.95 0.00 59.93
2017-12-31 395.37 0.00 34.97
2017-09-30 395.37 0.00 34.97
2017-06-30 387.41 0.00 23.24
2017-03-31 387.41 0.00 23.24
2016-12-31 370.03 0.00 55.09
2016-09-30 370.03 0.00 55.09
2016-06-30 355.95 0.00 42.11
2016-03-31 355.95 0.00 42.10
2015-12-31 355.00 0.00 28.53
2015-09-30 355.00 0.00 28.53
2015-06-30 332.28 0.00 52.46
2015-03-31 332.28 0.00 52.46
2014-12-31
2014-09-30
2014-06-30 293.41 0.00 48.00
2014-03-31 293.41 0.00 48.00
2013-12-31
2013-09-30
2013-06-30
2013-03-31 286.25 0.00 29.39
2012-12-31
2012-09-30
2012-06-30
  • Lakshmi Finance & Industrial has no debt.
  • Lakshmi Finance & Industrial has not taken on any debt in the past 5 years.
  • Lakshmi Finance & Industrial has no debt, it does not need to be covered by operating cash flow.
  • Lakshmi Finance & Industrial has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Lakshmi Finance & Industrial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lakshmi Finance & Industrial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LFIC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.33%
Current annual income from Lakshmi Finance & Industrial dividends.
If you bought ₹2,000 of Lakshmi Finance & Industrial shares you are expected to receive ₹107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lakshmi Finance & Industrial's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.49%).
  • Lakshmi Finance & Industrial's dividend is above the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:LFIC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 61 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:LFIC Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-07-23 4.000 5.196
2018-05-11 4.000 4.789
2017-07-05 3.500 3.704
2017-06-23 3.500 4.388
2017-05-17 3.500 4.195
2016-05-23 3.500 6.683
2015-07-21 3.000 7.979
2015-05-26 3.000 7.243
2014-05-12 1.800 7.054
2012-07-11 2.500 10.739

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Lakshmi Finance & Industrial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Lakshmi Finance & Industrial only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Lakshmi Finance & Industrial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Lakshmi Finance & Industrial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lakshmi Finance & Industrial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lakshmi Finance & Industrial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LFIC Management

 What is the CEO of Lakshmi Finance & Industrial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kanuri Prasad
COMPENSATION ₹7,001,825
AGE 66
CEO Bio

Mr. Kanuri Harishchandra Prasad, MBA, MS serves as Managing Director at Lakshmi Finance & Industrial Corporation Ltd. Mr. Prasad has over 2 decades of business experience with excellent academic record. He has been a Non-Executive Independent Director of B.N.Rathi Securities Limited since September 15, 1994. He has been an Independent Director of Keerthi Industries Limited since April 29, 2006. He serves as a Director of Hyderabad Flextech Ltd. and is guiding it and Management in various Managerial decisions. He serves as a Director of L.Pack Polymers Ltd., Green Park Hotels & Resort Pvt. Ltd., Triveni B.N. Realty Securities Ltd., Andhra Printers Ltd., Healty Investments Ltd., KLN Holding Pvt. Ltd., Unijolly Investments CompanyLtd. and has been an Executive Director of Lakshmi Finance & Industrial Corporation Ltd. since May 11, 1985. He served as a Non Executive & Independent Director of Suryajyoti Spinning Mills Ltd, since January 30, 2006 until August 03, 2016. He served as a Non-Executive Independent Director of Techtran Polylenses Ltd. from August 11, 2010 to May 9, 2016. Mr. Prasad holds an M.S. degree in Chemical Technology from Washington University, St. Louis, USA and an M.B.A. from Central University USA. He holds a B.Tech. in Chemical Technology from Madras University.

CEO Compensation
  • Kanuri's compensation has been consistent with company performance over the past year.
  • Kanuri's remuneration is higher than average for companies of similar size in India.
Management Team

Kanuri Prasad

TITLE
MD & Executive Director
COMPENSATION
₹7M
AGE
66

U. Kumar

TITLE
Chief Financial Officer
COMPENSATION
₹851K
AGE
55

Prity Bokaria

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹205K
AGE
29
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the Lakshmi Finance & Industrial board of directors in years:

5.2
Average Tenure
65
Average Age
  • The tenure for the Lakshmi Finance & Industrial board of directors is about average.
Board of Directors

Kanuri Prasad

TITLE
MD & Executive Director
COMPENSATION
₹7M
AGE
66
TENURE
33.9 yrs

Ramasahayam Reddy

TITLE
Independent Non­Executive Director
COMPENSATION
₹43K
AGE
87

Keshav Bhupal

TITLE
Independent Non-Executive Director
COMPENSATION
₹43K
TENURE
5.2 yrs

Kapil Bhatia

TITLE
Independent Non Executive Director
COMPENSATION
₹20K

Kanuri Prasad

TITLE
Non-Executive Director
COMPENSATION
₹40K
AGE
35
TENURE
5.2 yrs

Madhurika Venkat

TITLE
Independent Non-Executive Director
COMPENSATION
₹33K
AGE
64
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Lakshmi Finance & Industrial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lakshmi Finance & Industrial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LFIC News

Simply Wall St News

Announcing: Lakshmi Finance & Industrial (NSE:LFIC) Stock Increased An Energizing 217% In The Last Five Years

While Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 20% in the last quarter. … So while it's never fun to see a share price fall, it's important to look at a longer time horizon. … During five years of share price growth, Lakshmi Finance & Industrial achieved compound earnings per share (EPS) growth of 18% per year.

Simply Wall St -

Is Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) CEO Pay Fair?

The CEO of Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) is Kanuri Prasad. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … According to our data, Lakshmi Finance & Industrial Corporation Limited has a market capitalization of ₹234m, and pays its CEO total annual compensation worth ₹7.0m.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC)

We'll look at Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) P/E ratio and reflect on what it tells us about the company's share price. … Lakshmi Finance & Industrial has a price to earnings ratio of 10.79, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Do Directors Own Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) Shares?

If you want to know who really controls Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC), then you'll have to look at the makeup of its share registry. … Lakshmi Finance & Industrial is a smaller company with a market capitalization of ₹272m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Lakshmi Finance & Industrial

Simply Wall St -

Should Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) Be Part Of Your Portfolio?

Historically, Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) has been paying a dividend to shareholders. … Let's dig deeper into whether Lakshmi Finance & Industrial should have a place in your portfolio. … Check out our latest analysis for Lakshmi Finance & Industrial

Simply Wall St -

How Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC) Can Impact Your Portfolio Volatility

In finance, Beta is a measure of volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Is Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) P/E Ratio Really That Good?

To keep it practical, we'll show how Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Lakshmi Finance & Industrial's P/E ratio is 6.6. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Did Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) Recent Earnings Growth Beat The Trend?

After looking at Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) latest earnings announcement (30 June 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … See our latest analysis for Lakshmi Finance & Industrial? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which LFIC is growing has slowed down

Simply Wall St -

Who Owns Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC)?

Today, I will be analyzing Lakshmi Finance & Industrial Corporation Limited’s (NSE:LFIC) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Lakshmi Finance & Industrial Corporation Limited (NSE:LFIC): What You Have To Know Before Buying For The Upcoming Dividend

Have you been keeping an eye on Lakshmi Finance & Industrial Corporation Limited's (NSE:LFIC) upcoming dividend of ₹4.00 per share payable on the 09 September 2018? … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at Lakshmi Finance & Industrial's most recent financial data to examine its dividend characteristics in more detail.

Simply Wall St -

LFIC Company Info

Description

Lakshmi Finance & Industrial Corporation Limited operates as a non-banking finance company that engages in the investment of 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.

Details
Name: Lakshmi Finance & Industrial Corporation Limited
LFIC
Exchange: NSEI
Founded: 1923
₹225,000,000
3,000,000
Website: http://www.lakshmifinance.org
Address: Lakshmi Finance & Industrial Corporation Limited
Suryodaya, 1-10-60/3,
1st Floor,
Hyderabad,
Andhra Pradesh, 500016,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI LFIC Equity Shares National Stock Exchange of India IN INR 30. Jun 2010
Number of employees
Current staff
Staff numbers
9
Lakshmi Finance & Industrial employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:56
End of day share price update: 2019/04/16 00:00
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.