Dhanlaxmi Bank Limited

Financial Services — Banks - Regional · NSE

₹36.00+₹2.58 (+7.72%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Dhanlaxmi Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dhanlaxmi Bank Limited provides various banking and financial services in India. The company operates through Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business segments.

IndustryBanks - Regional

SectorFinancial Services

Employees1,856

Annual revenue₹787 Cr

How does it make money?

Turns over ₹787 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit. Each of its 1,856 employees supports ₹42.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹42.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +43% while net margin moved +45% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect+45%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Shareholders fund only 6.9% of the balance sheet — a thinner cushion than most peers carry
• Capital adequacy, gross NPAs and provision coverage decide a lender's financial health, and none are available here — check the bank's own quarterly disclosure

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.6x

3Y Median

15.7x

40 monthly readings · mean 17.1x · range 8.3x–34.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 3y median of 15.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 17.0x.

vs. its own history

Fair

15.7x median over 40 months · -20%

vs. sector peers

Cheap

17.0x median of 4 peers · -26%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was 25.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✗ 7.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 15.7x✓ 12.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹1,421 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.6x

Cheap

Cheap against the generic band

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.85

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

25.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

103.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹598 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

0.6%

Weak

Assets generate little profit

Operating Margin

18.1%

Good

Healthy core-business profitability

Net Margin

14.9%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

30.7 / 31.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹550 Cr	₹581 Cr	₹636 Cr	₹787 Cr	+12.7%
PAT (Net Profit)	₹49 Cr	₹58 Cr	₹67 Cr	₹103 Cr	+27.7%
EPS	₹1.58	₹1.79	₹2.37	₹2.6	+18.0%
ROE	5.1%	5.6%	4.8%	7.0%	—
Total Debt	₹492 Cr	₹299 Cr	₹200 Cr	₹537 Cr	+2.9%
Free Cash Flow	₹181 Cr	-₹25 Cr	-₹37 Cr	₹598 Cr	+48.9%

🟢 Revenue has grown at 12.7% a year over 3 years.

🟢 PAT (Net Profit) has grown at 27.7% a year over 3 years.

🟢 EPS has grown at 18.0% a year over 3 years.

🟢 ROE has risen from 5.1% to 7.0% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 2.9% a year over 3 years.

🟢 Free Cash Flow has grown at 48.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,238 Cr

Total Liabilities

₹19,764 Cr

Cash & Equivalents

₹1,263 Cr

Operating Cash Flow

₹631 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

50.2%

Corporate Actions

Ex-Dividend Date

10 Jun 2011

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

4 mixed2 general

Dhanlaxmi Bank Ltd. Share Price Rise Streak and Valuation

Univest, 07 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dhanlaxmi Bank dispatches 99th AGM notice for Sept 23 meeting

scanx.trade, 13 Oct

Dhanlaxmi Bank shares jump 8% after Q3 business update; details here

Business Standard, 05 JanPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dhanlaxmi Bank appoints Krishna Kumar K as CFO effective July 10, 2026

Sahi, 10 Jul

Dhanlaxmi Bank Q1 profit more than doubles on lower provisions

The Economic Times, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Buzzing Stocks: ZEE shares fall 3% on warrant issue; Dhanlaxmi Bank, South Indian Bank gain on healthy Q1...

Moneycontrol.com, 02 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingProfitability · Risk

WeakFinancial Health

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑