Check Before You Invest : Dalal Street Investments Ltd

BSE: 501148 NSE: ISIN: INE422D01012

| Sector: BFSI | Industry: Finance - Investment

Snapshot

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

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

Q.2 Is Dalal Street Investments Ltd a good quality company?

Dalal Street Investments Ltd is a quality company, based on a 8-year financial track record.

Q.3 Is Dalal Street Investments Ltd undervalued or overvalued?

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

Q.4 Is Dalal Street Investments Ltd a good buy now?

Dalal Street Investments 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 Total Income growth of Dalal Street Investments Ltd?

Dalal Street Investments Ltd Operating Income growth is -11.29% for FY-2025, which is below its 5-year CAGR of 22.42%, indicating slower growth.

Q.2 Return on Assets of Dalal Street Investments Ltd?

Dalal Street Investments Ltd Return on Asset is 1.8%, which is above its 5-year historical median of 1.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	25.15	19.73
PPOP%	92.31	92.31
RoA%	1.8	1.6

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

Dalal Street Investments Ltd Return on Equity is 2.7% for FY-2025, which is above its 5-year historical median of 2.4%, indicating the business is making better use of its shareholders capital.

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

Dalal Street Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 92.31% for FY-2025, which is in line with its 5-year median(92.31%), indicating stable margins.

Q.5 Net Profit Margin of Dalal Street Investments Ltd?

Dalal Street 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 25.15% for FY-2025, which is above its 5-year median( 19.73%), indicating increasing margins.

Q.6 Total Asset growth of Dalal Street Investments Ltd?

Dalal Street Investments Ltd Total Asset growth is -20.58% for FY-2025, which is below its 5-year CAGR of 2.14%, indicating slower growth.

Ownership & governance

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

Promoters hold 74.68% of the Dalal Street Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Dalal Street Investments Ltd AUM CAGR is 2.14%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

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

Dalal Street Investments Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	25.15	9.95
PPOP%	92.31	-13.4
RoA%	1.8	0.8

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

Dalal Street Investments Ltd ROCE (2.9) 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%	25.15	9.95
PPOP%	92.31	-13.4
RoA%	1.8	0.8
ROCE%	2.7	1.9
ROE%	2.7	1.2

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 8.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	8.5%	6.1%	8.4%	-19.1%

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	-	46.92	33.72
Price to Book	2.08	1.96	0.94
Price to Sales	21.58	21.59	12.44
EV to EBITDA	-30.28	24.18	9.97

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

The current Price to book ratio (P/B) 2.08% is higher than its historical median of 1.96%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Dalal Street Investments Ltd return on invested capital (ROIC) is 2.41% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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