Check Before You Invest : Dee Kartavya Finance Ltd

Q: Which industry/sub-sector does Dee Kartavya Finance Ltd belong to?

Dee Kartavya Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Dee Kartavya Finance Ltd a good quality company?

Dee Kartavya Finance Ltd is a quality company, based on a multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Dee Kartavya Finance Ltd undervalued or overvalued?

Dee Kartavya Finance Ltd appears Undervalued, as its key valuation ratios are lower than 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. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 9.13, Historic Median: 9.13. Price to Sales, Current: 632.14, Historic Median: 632.14. EV to EBITDA, Current: -123.88, Historic Median: -123.88

Q: Is Dee Kartavya Finance Ltd a good buy now?

Dee Kartavya 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

Q: Total Income growth of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Operating Income growth is NA% for FY-2019, which is above its 5-year CAGR of -0.49%, indicating faster growth.

Q: Return on Assets of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Return on Asset is -0.4%, which is in line with its 5-year historical median of -0.4%, indicating stable earnings on assets. Efficiency & Key Metrics. NPM (%), Current: -113.21, Historic Median: -13.41. PPOP (%), Current: -, Historic Median: -. RoA (%), Current: -0.4, Historic Median: -0.4

Q: Return on Equity (ROE) of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Return on Equity is -0.4% for FY-2019, which is in line with its 5-year historical median of -0.4%, indicating the business is making similar use of its shareholders capital.

Q: Net Profit Margin of Dee Kartavya Finance Ltd?

Dee Kartavya Finance 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 -113.21% for FY-2019, which is below its 5-year median( -13.41%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Dee Kartavya Finance Ltd return on invested capital (ROIC) is -0.38% for FY-2019, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Q: Total Asset growth of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Total Asset growth is 0% for FY-2019, which is below its 5-year CAGR of 14.87%, indicating slower growth.

Snapshot

Q.1 Which industry/sub-sector does Dee Kartavya Finance Ltd belong to?

Dee Kartavya Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Dee Kartavya Finance Ltd a good quality company?

Dee Kartavya Finance Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Dee Kartavya Finance Ltd undervalued or overvalued?

Dee Kartavya Finance Ltd appears Undervalued, as its key valuation ratios are lower than 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	-	-
Price to Book	9.13	9.13
Price to Sales	632.14	632.14
EV to EBITDA	-123.88	-123.88

Q.4 Is Dee Kartavya Finance Ltd a good buy now?

Dee Kartavya 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 Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Operating Income growth is NA% for FY-2019, which is above its 5-year CAGR of -0.49%, indicating faster growth.

Q.2 Return on Assets of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Return on Asset is -0.4%, which is in line with its 5-year historical median of -0.4%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	-113.21	-13.41
PPOP (%)	-	-
RoA (%)	-0.4	-0.4

Q.3 Return on Equity (ROE) of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Return on Equity is -0.4% for FY-2019, which is in line with its 5-year historical median of -0.4%, indicating the business is making similar use of its shareholders capital.

Q.4 Net Profit Margin of Dee Kartavya Finance Ltd?

Dee Kartavya Finance 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 -113.21% for FY-2019, which is below its 5-year median( -13.41%), indicating decreasing margins.

Q.5 Does its ROIC exceed its WACC?

Dee Kartavya Finance Ltd return on invested capital (ROIC) is -0.38% for FY-2019, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.6 Total Asset growth of Dee Kartavya Finance Ltd?

Dee Kartavya Finance Ltd Total Asset growth is 0% for FY-2019, which is below its 5-year CAGR of 14.87%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Dee Kartavya Finance Ltd?

Q.1 Promoter shareholding and pledge status of Dee Kartavya Finance Ltd?

Promoters hold 15.52% of the Dee Kartavya Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dee Kartavya Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Dee Kartavya Finance Ltd vs Industry Peers?

Dee Kartavya Finance Ltd AUM CAGR is 14.87%, compared to the 5-year industry median CAGR of 9.71%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Dee Kartavya Finance Ltd vs industry peers

Dee Kartavya Finance Ltd profit metrics are below the industry median level of 4.76%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	-113.21	12.87
PPOP (%)	-	-
RoA (%)	-0.4	1.4

Q.3 Operating efficiency of Dee Kartavya Finance Ltd vs industry peers?

Dee Kartavya Finance Ltd ROCE (0.1) is below the industry median of (4.15); while the current ROE (-0.4) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	-113.21	12.87
PPOP (%)	-	-
RoA (%)	-0.4	1.4
ROCE (%)	-0.4	4.15
ROE (%)	-0.4	2.3

Valuation & price assessment

Q.1 Stock return of Dee Kartavya Finance Ltd over the last decade?

Over the last - years, the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 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	-	-	29.12
Price to Book	9.13	9.13	1.11
Price to Sales	632.14	632.14	9.10
EV to EBITDA	-123.88	-123.88	11.77

Q.3 Valuation ratios of Dee Kartavya Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 9.13 is lower than its historical median of 9.13, indicating that the stock is trading below its historical average valuation.

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