BSE:511451

Stock Analysis Report

Executive Summary

Dharani Finance Limited operates as a non-banking finance company in India.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Dharani Finance has significant price volatility in the past 3 months.
  • Dharani Finance is not covered by any analysts.

Share Price & News

How has Dharani Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.9%

BSE:511451

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-61.7%

BSE:511451

-3.2%

IN Consumer Finance

-14.7%

IN Market

511451 underperformed the Consumer Finance industry which returned -3.1% over the past year.

511451 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

511451IndustryMarket
7 Day-4.9%-3.6%-2.1%
30 Day-12.5%1.9%-3.9%
90 Day-37.5%-10.2%-10.1%
1 Year-61.7%-61.7%-2.5%-3.2%-12.9%-14.7%
3 Year-66.3%-66.3%59.3%56.0%17.7%11.5%
5 Year-62.8%-62.8%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Dharani Finance undervalued based on future cash flows and its price relative to the stock market?

4.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Dharani Finance to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Dharani Finance to establish if it is available at substantial discount.


Price Based on Earnings

Dharani Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Dharani Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Dharani Finance, we can't assess if its growth is good value.


Price Based on Value of Assets

Dharani Finance is good value based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Dharani Finance expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Dharani Finance is high growth as no revenue estimate data is available.

Dharani Finance's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).

Unable to compare Dharani Finance's revenue growth to the India market average as no estimate data is available.

Dharani Finance's earnings growth is positive but not above the India market average.

Dharani Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Dharani Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Dharani Finance performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Dharani Finance's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Dharani Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Dharani Finance's 1-year earnings growth is negative, it can't be compared to the IN Consumer Finance industry average.


Return on Equity

Dharani Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Dharani Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Dharani Finance's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dharani Finance's financial position?


Financial Position Analysis

Dharani Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Dharani Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Dharani Finance's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Dharani Finance's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 79.4x debt.


Next Steps

Dividend

What is Dharani Finance's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Dharani Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Dharani Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Dharani Finance has not reported any payouts.

Unable to verify if Dharani Finance's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Dharani Finance has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Dharani Finance's salary, the management and board of directors tenure and is there insider trading?

19.6yrs

Average board tenure


CEO

K. Kandasamy (61yo)

0.0yrs

Tenure

₹1,413,000

Compensation

Mr. K. Kandasamy has been the Managing Director and Chief Executive Officer of Dharani Finance Ltd. since June 24, 2004 and has been its Executive Director since June 25, 1994. He has been the Director at  ...


CEO Compensation Analysis

K.'s remuneration is about average for companies of similar size in India.

K.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

19.6yrs

Average Tenure

79yo

Average Age

The average tenure for the Dharani Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Narayanan Subramanian (52yo)

    President of Corporate Affairs

    • Tenure: 0.0yrs
    • Compensation: ₹692.00k
  • K. Kandasamy (61yo)

    CEO, MD & Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹1.41m
  • N. Sivabalan

    Chief Financial Officer

    • Tenure: 0.3yrs
  • S. Kuppan (59yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.1yrs

Board Members

  • Visalakshi Periasamy (73yo)

    Non Executive Director

    • Tenure: 29.3yrs
    • Compensation: ₹7.00k
  • Palani Periasamy (81yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: ₹6.00k
  • K. Kandasamy (61yo)

    CEO, MD & Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹1.41m
  • M. Ganapathy (79yo)

    Non Executive & Independent Director

    • Tenure: 14.0yrs
    • Compensation: ₹12.00k
  • S. Muthu (80yo)

    Non-Executive Independent Director

    • Tenure: 8.8yrs
    • Compensation: ₹13.00k

Company Information

Dharani Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dharani Finance Limited
  • Ticker: 511451
  • Exchange: BSE
  • Founded: 1990
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹8.740m
  • Shares outstanding: 4.99m
  • Website: https://www.dharanifinance.in

Number of Employees


Location

  • Dharani Finance Limited
  • PGP House
  • No. 57, Sterling Road
  • Chennai
  • Tamil Nadu
  • 600034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511451BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Dharani Finance Limited operates as a non-banking finance company in India. The company operates through Financial Services, Travel Services, and Others segments. It leases vehicles; and provides travel an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:33
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
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.