BSE:532180

Stock Analysis Report

Executive Summary

Dhanlaxmi Bank Limited provides various banking and financial services in India.

Rewards

PE ratio (3.8x) is below the Indian market (13.4x)

Became profitable this year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (₹3B)



Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Dhanlaxmi Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532180 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

532180

-1.3%

IN Banks

-0.4%

IN Market


1 Year Return

-7.1%

532180

9.6%

IN Banks

11.1%

IN Market

Return vs Industry: 532180 underperformed the Indian Banks industry which returned 9.6% over the past year.

Return vs Market: 532180 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532180IndustryMarket
7 Day-2.8%-1.3%-0.4%
30 Day-9.2%-3.1%-1.5%
90 Day-7.1%-1.6%3.3%
1 Year-7.1%-7.1%10.0%9.6%13.0%11.1%
3 Year-42.2%-42.2%14.8%13.5%25.3%18.6%
5 Year-61.0%-61.0%10.8%7.3%35.4%23.1%

Price Volatility Vs. Market

How volatile is Dhanlaxmi Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dhanlaxmi Bank undervalued compared to its fair value and its price relative to the market?

3.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 532180's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 532180's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532180 is good value based on its PE Ratio (3.8x) compared to the Banks industry average (18.8x).

PE vs Market: 532180 is good value based on its PE Ratio (3.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532180's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532180 is good value based on its PB Ratio (0.4x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is Dhanlaxmi Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dhanlaxmi Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dhanlaxmi Bank performed over the past 5 years?

59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532180 has a high level of non-cash earnings.

Growing Profit Margin: 532180 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 532180 has become profitable over the past 5 years, growing earnings by 59.7% per year.

Accelerating Growth: 532180 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 532180 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (25.5%).


Return on Equity

High ROE: 532180's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dhanlaxmi Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532180 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532180's debt is covered by short term assets (assets are 4.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 532180 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 532180 is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: 532180's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 532180 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532180's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532180 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532180's loans are broadly funded by customer deposits.

Level of Bad Loans: 532180 has a high level of bad loans (7.48%)


Next Steps

Dividend

What is Dhanlaxmi Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532180's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532180's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532180's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532180's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532180 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532180's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Dhanlaxmi Bank has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Sajeev Krishnan
Part-time Chairman1.8yrs₹640.00kno data
G. Venkatanarayanan
Additional Director0.3yrsno datano data
S. Kannan
Additional Director4yrsno datano data
K. Murali
Non-Executive Independent Director1.7yrs₹410.00kno data
Chella Srinivasan
Independent Director6.8yrs₹560.00k0.000080% 2.8k
K. R. Devi
Non-Executive Independent Director5.3yrs₹590.00k0.000080% 2.8k
B. Pillai
Non-Independent Director0.9yrs₹100.00k10% 348.9m
C. Gopinathan
Non-Executive Director3.5yrs₹600.00k7.5% 261.6m

2.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 532180's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dhanlaxmi Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dhanlaxmi Bank Limited
  • Ticker: 532180
  • Exchange: BSE
  • Founded: 1927
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: ₹3.489b
  • Shares outstanding: 253.01m
  • Website: https://www.dhanbank.com

Number of Employees


Location

  • Dhanlaxmi Bank Limited
  • Dhanalakshmi Buildings
  • Naickanal
  • Thrissur
  • Kerala
  • 680001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532180BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2001
DHANBANKNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2001

Biography

Dhanlaxmi Bank Limited provides various banking and financial services in India. It operates through Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business Operations segments. The company offers deposit products, such as savings and current accounts, and term deposits; loans, including property, car, commercial, personal, education, and business loans, as well as loans against securities; and foreign exchange services comprising foreign currency cash, cheque deposits, foreign currency demand drafts, remittances, and foreign exchange cards. It also provides export and import services; credit products comprising industrial and trade advance, import export assistance, and agricultural assistance; corporate salary accounts; and cash management services, as well as life, health, car, travel, and house and shop insurance products. In addition, the company offers non-resident Indians (NRI) banking services, such as non-residential external accounts, non-resident ordinary accounts, recurring and term deposits, foreign currency non-resident fixed deposits, and resident foreign currency accounts, as well as money transfer services and NRI property loans; and micro and agricultural banking, and financial planning services. Further, it provides SME banking services, including working capital facilities, trade facilities, and capacity expansion services; credit, debit, and gift cards; and investment, depository, and online banking services, as well as locker facilities. As of March 31, 2019, it had 250 branches and 346 ATMs. Dhanlaxmi Bank Limited was founded in 1927 and is headquartered in Thrissur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:44
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.