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Dharani Finance Limited (511451) Fair Value & Analysis

Consumer Goods · IN · Market cap ₹27.4M

DF Dharani Finance Limited 511451 · BSE
Price₹12.35
Fair Value₹20.39
Upside+65.1%
Quality49/100
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Strengths

Trades 39% below our fair value of ₹20.39

Risks

!Expensive Growth (revenue 5y +26.6 %/yr)
!Loss over the last twelve months · -18.3% net margin · fiscal year 2026 42.5%
!Low debt · negative free cash flow
!Mixed vs. peers (5/11)
Expensive Growth (revenue 5y +26.6 %/yr)
Loss over the last twelve months · -18.3% net margin · fiscal year 2026 42.5%
Low debt · negative free cash flow
Mixed vs. peers (5/11)
Moderate moat 56/100
Evidence: Medium Range ₹15.18 – ₹25.60 Share as image

Fair value as of: Aug 25, 2026

From 14 valuation models · updated yesterday

Share price −0.1% over the past month.

Below-average quality, trading 39% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (₹15.18). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹17.44 ₹3.46 Fair Value ₹20.39 Apr 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.

How to read this chart

60‑month range ₹3.46 – ₹17.44 · fair‑value band ₹15.18 – ₹25.60 · the ₹12.35 price screens below the ₹20.39 fair value. Dashed = 300-day average. As of Aug 25, 2026.

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Analysis

Dharani Finance Limited (511451) currently trades at ₹12.35, while our model-based Fair Value estimate is ₹20.39, implying the stock looks roughly 65.1% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Consumer Goods sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Dharani Finance Limited generated revenue of ₹9.0M at a net margin of -18.3%. Revenue declined 21.9% year over year. The stock trades on a trailing P/E of 7.6 (as of Aug 25, 2026). Fundamentals as of Aug 25, 2026

Our scenario range runs from ₹15.18 (bear case) to ₹25.60 (bull case); at ₹12.35, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 31% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Goods peers we cover trades at -57% fair-value upside, at 65%, 511451 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹5.12 ₹5.78 ₹6.33 72
Growth-Adj P/E ₹15.55 ₹22.21 ₹28.88 68
P/E Multiple ₹18.32 ₹24.43 ₹30.54 63
All 14 models by family
Earnings-Based
Graham-Dodd ₹7.55 ₹25.67 ₹34.42 54
Lynch FV ₹5.88 ₹8.41 ₹10.93 50
PEG = 1.0 ₹5.88 ₹8.41 ₹10.93 46
EPV ₹5.12 ₹5.78 ₹6.33 59
Multiples
P/E Multiple ₹18.32 ₹24.43 ₹30.54 63
P/S Multiple ₹2.35 ₹3.14 ₹3.92 58
P/B Multiple ₹14.16 ₹18.88 ₹23.60 55
EV/EBIT ₹20.59 ₹27.60 ₹34.62 53
EV/EBITDA ₹15.18 ₹20.39 ₹25.60 54
EV/Revenue ₹1.75 ₹2.69 ₹3.63 43
Asset-Based
NCAV (Graham) ₹10.04 ₹13.46 ₹20.09 50
Economic Profit
Residual Income ₹14.03 ₹13.75 ₹11.88 61
ROIC Compounder ₹5.12 ₹5.78 ₹6.33 72
Growth Earnings
Growth-Adj P/E ₹15.55 ₹22.21 ₹28.88 68

Widest divergence: Growth Earnings (₹22.21) versus Economic Profit (₹5.78). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

P/E ratio 7.6 as of Aug 25, 2026
P/S ratio 3.04 TTM
Net margin -18.3% TTM
Operating margin 54.7% TTM
EPS (TTM) ₹4.74
Revenue (TTM) ₹9.0M TTM
More key figures
Growth
Revenue growth (YoY) -21.9% 3y avg +37.0%
EPS growth (YoY) +11.5%
Balance sheet & cash flow
Free cash flow −₹3.5M FY2026

Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 48 · Market factors (momentum, volatility) 54

Profitability 38
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 45
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Dharani Finance Limited operates as a non-banking finance company in India. The company offers financial, and travel and tourism services. It also leases vehicles. The company was founded in 1990 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Dharani Finance Limited reported revenue of ₹13.1M in FY2026 versus ₹3.9M in FY2022, a compound +35.5%/yr. Reported net income was ₹5.5M in FY2026, compounding +16.3%/yr from FY2022.

Growth Quality 46/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹13.1M
Latest YoY
−1.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+37.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.6%
Avg. revenue growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+28.8% (28.8 + 0.0)
Revenue +35.5%/yr
FY22 ₹3.9M
FY23 ₹5.1M
FY24 ₹3.9M
FY25 ₹13.3M
FY26 ₹13.1M
Net income +16.3%/yr
FY22 ₹3.0M
FY23 −₹1.3M
FY24 −₹3.0M
FY25 ₹8.4M
FY26 ₹5.5M

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Cite: Fair Value Calculator (2026). "Dharani Finance Limited Fair Value". https://www.fairvalue-calculator.com/stock/511451

Peer Group

Consumer Discretionary · 3800 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Recreational Goods, Other” was too small, so the broader sector is used.)

Quality Score 49 · Below median
Fair Value upside +65% · Top 25%
Return on assets 0% · Below median
Net margin (TTM) -18% · Bottom 25%
Operating margin (TTM) 55% · Top 25%
Revenue growth -22% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Consumer Discretionary median · lower = cheaper

P/E (TTM) 7.6× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 22
FUTURE0 · sector 14
PAST0 · sector 22
HEALTH98 · sector 96
DIVIDEND0 · sector 43

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Dharani Finance Limited (511451) overvalued or undervalued?
As of Aug 25, 2026, our model estimates a fair value of ₹20.39 versus a price of ₹12.35, about +65% (undervalued).
What is the fair value of 511451?
Our model-based fair value for Dharani Finance Limited is ₹20.39 (as of Aug 25, 2026), built from audited fundamentals. The current price: ₹12.35.
What is the quality score of 511451?
Dharani Finance Limited has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Dharani Finance Limited (511451)?
Dharani Finance Limited reported trailing-twelve-month revenue of about ₹9.0M (latest available figure, as of Aug 25, 2026).
What is the net profit margin of 511451?
The net profit margin of Dharani Finance Limited is about -18.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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