1 month ago
Mukul Agarwal Raises Stake in Laxmi India Finance
Mukul Agarwal, a well-known investor, has increased his investment in a small financial company called Laxmi India Finance.
This company helps small businesses and self-employed people get loans, especially in smaller cities and rural areas.
Agarwal first invested in this company last year and has now increased his stake.
The company is growing fast, with a lot of loans given to small businesses.
It is also expanding and using new technology to make things better for customers.
The company's stock is cheaper compared to others in the same industry, which might be why Agarwal finds it attractive.
However, there are some concerns about the quality of their loans, as some borrowers are not paying back on time.
Overall, Agarwal seems confident in the company's future, but investors should keep an eye on how things develop.
Mukul Agarwal raised his stake in Laxmi India Finance Ltd. by 0.75%, taking his total holding to 4.58%.
The company focuses on retail lending, particularly to MSMEs and self-employed borrowers in Tier-II, Tier-III, and rural markets.
Laxmi India Finance reported a 27.4% YoY growth in AUM, driven by MSME loans which grew at a CAGR of 33.29% since FY23.
The company is expanding its physical presence and investing in technology to improve customer acquisition and loan servicing.
Despite strong financial performance, asset quality has degraded with GNPA rising to 2.13% and NNPA to 1.08% in FY26.
- Who
- Mukul Agarwal, an ace investor, raised his stake in Laxmi India Finance Ltd.
- What
- Mukul Agarwal increased his stake in Laxmi India Finance Ltd. by 0.75%, taking his total holding to 4.58%.
- Where
- Laxmi India Finance operates in Tier-II, Tier-III, and rural markets across central and western India, including states like Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
- When
- The stake was raised in the quarter ended on 30 June.
- Why
- The investment is driven by the company's strong loan book growth, attractive valuation, and expansion plans, despite concerns over asset quality.
Investor Confidence
Asset Quality Concerns
Loan Book Growth
Investor Confidence
Strong loan book growth with a 27.4% YoY increase in AUM, driven by MSME loans.
Asset Quality Concerns
Asset quality has degraded with GNPA rising to 2.13% and NNPA to 1.08%.
Valuation
Investor Confidence
Attractive valuation with a PE of 11.8x and PBV of 1.26x, lower than industry medians.
Asset Quality Concerns
Potential risks in lending to MSMEs and self-employed borrowers during economic slowdowns.
Key facts
- Investor
- Mukul Agarwal
- Company
- Laxmi India Finance Ltd.
- Stake Increase
- 0.75%
- Total Holding
- 4.58%
- AUM Growth
- 27.4% YoY
- MSME Loans
- ₹1,298.68 crore
- PE Ratio
- 11.8x
- PBV Ratio
- 1.26x






