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Check Before You Invest : Dhoot Industrial Finance Ltd

BSE: 526971 NSE: ISIN: INE313G01016
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Dhoot Industrial Finance Ltd belong to?
Dhoot Industrial Finance Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Dhoot Industrial Finance Ltd a good quality company?
Dhoot Industrial Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dhoot Industrial Finance Ltd undervalued or overvalued?
Dhoot Industrial Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 1.94
Price to Book 0.26 0.26
Price to Sales 6.86 4.87
EV to EBITDA -35.16 3.03
Q.4 Is Dhoot Industrial Finance Ltd a good buy now?
Dhoot Industrial Finance 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd revenue growth is -65.4% for FY-2025, which is below its 5-year CAGR of -4.69%, indicating slower growth.

Q.2 Gross Profit margin of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Gross profit margin which is the profit after deduction of direct costs, is 152.7% for FY-2025, which is in line with its 5-year median of 152.7%, indicating stable margins.

Q.3 Operating Profit Margin of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -62.98% for FY-2025, which is below its 5-year median of -9.67% indicating decreasing margins.

Q.4 Net Profit Margin of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Net Profit Margin is 167.68% for FY-2025, is in line with its 5-year median of 167.68%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 152.7 152.7
Operating Profit Margin (%) -62.98 -9.67
Net Profit Margin (%) 167.68 167.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Return on Asset is 3.66%, which is below its 5-year historical median of 5.33%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Return on capital employed is 4.31% for FY-2025, which is below its 5-year historical median of 10.38%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Return on equity is 4.31% for FY-2025, which is below its 5-year historical median of 7.17%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Cash conversion cycle is 53 days, above its 5-year historical median of 12 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 (x) 0.02 0.07
ROE (%) 4.31 7.17
ROCE (%) 4.31 10.38
Cash Conversion Cycle 53 days 12 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Debt-to-Equity ratio is 0.13, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dhoot Industrial Finance Ltd?
Dhoot Industrial Finance Ltd Debt to cash flow from operations is -3.76, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dhoot Industrial Finance Ltd?

Q.1 Promoter shareholding and pledge status of Dhoot Industrial Finance Ltd?
Promoters hold 69.07% of the Dhoot Industrial Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dhoot Industrial Finance Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dhoot Industrial Finance Ltd vs industry peers?
Dhoot Industrial Finance Ltd revenue CAGR is -4.69%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -65.4 -
Gross Profit Growth (%) -90.3 17.9
Operating Profit Growth (%) 0 16.4
Net Profit Growth (%) -87.2 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.02 0.52
ROE (%) 4.31 2.05
ROCE (%) 4.31 3.6
Cash Conversion Cycle (days) 53.45 46

Valuation & price assessment

Q.1 Stock return of Dhoot Industrial Finance Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.4% 36.7% 39.5% -19%
Q.2 Valuation ratios of Dhoot Industrial Finance Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 1.94, indicating that the stock is trading below its historical average valuation.
Q.3 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 - 1.94 33.62
Price to Book 0.26 0.26 1.57
Price to Sales 6.86 4.87 2.21
EV to EBITDA -35.16 3.03 14.09

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