Check Before You Invest : Dhunseri Investments Ltd

BSE: 533336 NSE: DHUNINV ISIN: INE320L01011

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Dhunseri Investments Ltd belong to?

Dhunseri Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Dhunseri Investments Ltd a good quality company?

Dhunseri Investments Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Dhunseri Investments Ltd undervalued or overvalued?

Dhunseri Investments Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Dhunseri Investments Ltd a good buy now?

Dhunseri Investments Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Operating Income growth is -53.07% for FY-2025, which is below its 5-year CAGR of 12.63%, indicating slower growth.

Q.2 Return on Assets of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Return on Asset is 2.3%, which is in line with its 5-year historical median of 2.3%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	52.24	69.64
PPOP%	-58.97	-13.33
RoA%	2.3	2.3

Q.3 Return on Equity (ROE) of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Return on Equity is 2.4% for FY-2025, which is in line with its 5-year historical median of 2.4%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -58.97% for FY-2025, which is below its 5-year median(-13.33%), indicating decreasing margins.

Q.5 Net Profit Margin of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 52.24% for FY-2025, which is below its 5-year median( 69.64%), indicating decreasing margins.

Q.6 Total Asset growth of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Total Asset growth is 13.66% for FY-2025, which is above its 5-year CAGR of 12.74%, indicating faster growth.

Q.7 Capital Adequacy ratio of Dhunseri Investments Ltd?

Dhunseri Investments Ltd Capital Adequacy ratio (CAR) is 95.71% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dhunseri Investments Ltd?

Promoters hold 74.95% of the Dhunseri Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Dhunseri Investments Ltd vs Industry Peers?

Dhunseri Investments Ltd AUM CAGR is 12.74%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Dhunseri Investments Ltd vs industry peers

Dhunseri Investments Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	52.24	9.95
PPOP%	-58.97	-13.4
RoA%	2.3	0.8

Q.3 Operating efficiency of Dhunseri Investments Ltd vs industry peers?

Dhunseri Investments Ltd ROCE (3.7) is above the industry median of (1.9); while the current ROE (2.4) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	52.24	9.95
PPOP%	-58.97	-13.4
RoA%	2.3	0.8
ROCE%	3.3	1.9
ROE%	2.4	1.2

Valuation & price assessment

Q.1 Stock return of Dhunseri Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 20.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	20.8%	26.2%	13%	-35.7%

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	-	50.60	33.72
Price to Book	1.08	1.27	0.94
Price to Sales	-211	29.08	12.44
EV to EBITDA	-84.41	31.91	9.97

Q.4 Valuation ratios of Dhunseri Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.08% is lower than its historical median of 1.27%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Dhunseri Investments Ltd return on invested capital (ROIC) is 2.37% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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