Check Before You Invest : Dharni Capital Services Ltd

BSE: 543753 NSE: ISIN: INE0M9Q01011

| Sector: BFSI | Industry: Finance - Asset Management

Snapshot

Q.1 Which industry/sub-sector does Dharni Capital Services Ltd belong to?

Dharni Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q.2 Is Dharni Capital Services Ltd a good quality company?

Dharni Capital Services Ltd is a good quality company, based on a consistently good 6-year financial track record.

Q.3 Is Dharni Capital Services Ltd undervalued or overvalued?

Dharni Capital Services Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Dharni Capital Services Ltd a good buy now?

Dharni Capital Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Dharni Capital Services Ltd?

Dharni Capital Services Ltd revenue growth is -26.7% for FY-2025, which is below its 5-year CAGR of 97.5%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Return on capital employed is 22.8% for FY-2025, which is below its 5-year historical median of 25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Return on Asset is 15.9%, which is below its 5-year historical median of 17.8%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Return on equity is 17.2% for FY-2025, which is below its 5-year historical median of 18.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Cash conversion cycle is 3 days, above its 5-year historical median of 2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.3	0.54
ROE	17.2	18.8
ROCE	22.8	25
Cash Conversion Cycle	3 days	2 days

Q.6 Gross Profit margin of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 73.6% for FY-2025, which is above its 5-year median of 35%, indicating increasing margins.

Q.7 Operating Profit Margin of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 53.91% for FY-2025, which is above its 5-year median of 28.71% indicating increasing margins.

Q.8 Net Profit Margin of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Net Profit Margin is 53.49% for FY-2025, is above with its 5-year median of 25.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	73.6	35
Operating Profit Margin	53.91	28.71
Net Profit Margin	53.49	25.32

Q.9 Debt to Equity ratio of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Debt-to-Equity ratio is 0.02, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dharni Capital Services Ltd?

Dharni Capital Services Ltd Debt to cash flow from operations is 0.13, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dharni Capital Services Ltd?

Promoters hold 73.64% of the Dharni Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dharni Capital Services Ltd vs industry peers?

Dharni Capital Services Ltd revenue CAGR is 97.50%, compared to the industry median CAGR of 37.3%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-26.7	37.3
Gross Profit Growth	-	42.2
Operating Profit Growth	-	18.7
Net Profit Growth	-	49

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.3	0.38
ROE	17.2	16.4
ROCE	22.8	19.35
Cash Conversion Cycle (days)	3.04	1

Valuation & price assessment

Q.1 Stock return of Dharni Capital Services Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 45.48% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	45.5%	23.7%

Q.3 Valuation ratios of Dharni Capital Services Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	45.37	38.33	33.19
Price to Book	6.38	5.94	5.67
Price to Sales	23.35	12.31	22.04
EV to EBITDA	31.39	27.11	23.11

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