Dhoot Industrial Finance Limited

Financial Services — Asset Management · BSE

₹238.65+₹0.65 (+0.27%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Dhoot Industrial Finance Limited engages in the trading of chemicals and related commodities in India. It operates through Trading Activity and Financial Activity segments.

IndustryAsset Management

SectorFinancial Services

Employees11

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹134 reaches shareholders as profit, with ₹179 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹1.22 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin178.8%

Net margin133.6%

Revenue / employee₹1.22 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

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.

ROCE5.3%

ROE4.1%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -62% while net margin moved +364% 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-62%

Margin effect+364%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.24 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

54/ 100

Fair

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.35x

EV/EBITDA

5.8x

PEG

—

Dividend Yield

0.63%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -3.0% to 178.8% over 3 years.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -3.0% to 178.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1EBITDA margin holds above 177%✓ 178.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 4.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 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

4 good · 2 neutral · 5 weak

Market Cap

₹151 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-621.62

Loss-making

Negative earnings per share — the business is losing money

ROE

4.1%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

0.03x

Low

Conservative leverage

Revenue Growth (YoY)

134.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

279.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.63%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹60 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹238.65

Operating Margin

94.3%

Good

Healthy core-business profitability

Net Margin

67.4%

Good

Strong bottom-line conversion

Current Ratio

203.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.24

Market-like

Moves roughly in line with the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

246.8 / 266.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹33 Cr	₹13 Cr	₹13 Cr	-27.4%
EBITDA	-₹1 Cr	-₹3 Cr	₹22 Cr	₹24 Cr	—
EBITDA Margin	-3.0%	-9.7%	168.2%	178.8%	—
PAT (Net Profit)	₹10 Cr	₹148 Cr	₹19 Cr	₹18 Cr	+21.1%
EPS	₹16.05	₹234.35	₹29.89	₹28.47	+21.1%
ROE	3.7%	34.7%	4.2%	4.1%	—
ROCE	4.4%	41.1%	4.6%	5.3%	—
Total Debt	₹72 Cr	₹64 Cr	₹57 Cr	₹0 Cr	-88.2%
Free Cash Flow	₹9 Cr	₹5 Cr	-₹16 Cr	-₹60 Cr	—

🔴 Revenue has shrunk at 27.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹24 Cr.

🟢 EBITDA Margin has risen from -3.0% to 178.8% over 3 years (+181.8 pts).

🟢 PAT (Net Profit) has grown at 21.1% a year over 3 years.

🟢 EPS has grown at 21.1% a year over 3 years.

🟡 ROE has held roughly flat at 4.1% over 3 years.

🟡 ROCE has held roughly flat at 5.3% over 3 years.

🟢 Total Debt has shrunk at 88.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹60 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹448 Cr

Total Liabilities

₹12 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹60 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.9%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

03 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

Dhoot Industrial Finance Lower Circuit Streak: Day 2 Price and Data

Univest, 06 Oct

Dhoot Industrial Finance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Dhoot Industrial Finance closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 25 SeptResults

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

Dhoot Industrial Finance Ltd. Lower Circuit: Price and Key Data

Univest, 05 Oct

K-Lifestyle & Industries Ltd: ਕੰਪਨੀ ਦੀ ਹੋਈ 14ਵੀਂ CoC ਮੀਟਿੰਗ, ਨਿਵੇਸ਼ਕਾਂ ਲਈ ਅੱਗੇ ਕੀ?

Whalesbook, 07 Oct

Dhoot Industrial Finance Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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 oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair7.1/15

🔴RiskHigh2.7/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓EBITDA margin holds above 177%178.8%
✗Return on equity stays above 8%4.1%