Dhruva Capital Services Limited

Financial Services — Credit Services · BSE

₹75.00−₹3.90 (−4.94%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Dhruva Capital Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dhruva Capital Services Limited, a non-banking financial company, engages in the business of investment and financing in India.

IndustryCredit Services

SectorFinancial Services

Employees8

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹52 reaches shareholders as profit, with ₹73 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹39.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin72.8%

Net margin51.8%

Revenue / employee₹39.1 lakh

Who are its competitors?

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

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

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

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE4.0%

ROE5.2%

Peer median ROE16.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1144% while net margin moved +133% 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+1144%

Margin effect+133%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.27 — historically steadier than the index
✗ 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

77/ 100

Good

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

Valuation

45/ 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.

Historical Valuation

Current P/E

44.1x

3Y Median

47.9x

40 monthly readings · mean 520.1x · range 14.2x–2658.8x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 47.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 160% above the peer median of 17.0x.

vs. its own history

Fair

47.9x median over 40 months · -8%

vs. sector peers

Expensive

17.0x median of 4 peers · +160%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.1x

P/B

1.75x

EV/EBITDA

29.3x

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 30.1% to 72.8% over 3 years.
Return on equity is rising
ROE has improved from 1.2% to 5.2%.
Return on capital is rising
ROCE has improved from 1.4% to 4.0%.
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 120% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 30.1% to 72.8%. 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?

A premium to the sector to defend
It trades 160% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 99% a year✓ 131.7% CAGR
Latest reported year was -49.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 71%✓ 72.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 5.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 47.9x✓ 44.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹54 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.7

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

-49.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

28.5%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹75

Operating Margin

9.7%

Average

Average margins

Net Margin

117.4%

Good

Strong bottom-line conversion

Current Ratio

128.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

78.5 / 84.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+131.7%
EBITDA	₹0 Cr	-₹3 Cr	₹1 Cr	₹2 Cr	+211.2%
EBITDA Margin	30.1%	-228.8%	57.5%	72.8%	—
PAT (Net Profit)	₹0 Cr	₹4 Cr	₹1 Cr	₹2 Cr	+207.2%
EPS	₹0.17	₹10.48	₹3.1	₹2.25	+136.5%
ROE	1.2%	35.0%	11.4%	5.2%	—
ROCE	1.4%	7.3%	7.3%	4.0%	—
Total Debt	₹0 Cr	—	₹5 Cr	₹13 Cr	+635.6%
Free Cash Flow	₹0 Cr	-₹7 Cr	-₹7 Cr	-₹11 Cr	—

🟢 Revenue has grown at 131.7% a year over 3 years.

🟢 EBITDA has grown at 211.2% a year over 3 years.

🟢 EBITDA Margin has risen from 30.1% to 72.8% over 3 years (+42.8 pts).

🟢 PAT (Net Profit) has grown at 207.2% a year over 3 years.

🟢 EPS has grown at 136.5% a year over 3 years.

🟢 ROE has risen from 1.2% to 5.2% over 3 years (+4.1 pts).

🟢 ROCE has risen from 1.4% to 4.0% over 3 years (+2.6 pts).

🔴 Total Debt has grown at 635.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹46 Cr

Total Liabilities

₹15 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

Peer Comparison

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

Recent News

1 mixed5 general

Dhruva Capital Services Ltd. Peer Comparison – Compare with Others

Value Research, 17 Oct

Dhruva Capital Services Shareholders Approve Capital Increase and Fund Raising Plan

Whalesbook, 12 Oct

Dhruva Capital Services schedules Oct 10 EGM for ₹160 crore raise

scanx.trade, 10 Oct

Dhruva Capital shareholders approve capital hike and fund raise

scanx.trade, 12 Oct

Dhruva Capital Services reports standalone net loss of Rs 0.81 crore in the March 2026 quarter

Business Standard, 02 MayResults

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

Dhruva Capital Services Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Revenue growth is negative (-49.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10/15

🟡ValuationFair6.9/15

🔴RiskHigh4/10

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

✓Revenue growth stays above 99% a year131.7% CAGR
✓EBITDA margin holds above 71%72.8%
✗Return on equity stays above 8%5.2%
✓Valuation vs its own median of 47.9x44.1x today