Dhunseri Investments Limited

Financial Services — Capital Markets · NSE

₹901.50−₹15.40 (−1.68%)

DalalBaazaar Score

65 / 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, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dhunseri Investments Limited, a non-banking finance company, invests in shares and securities in India, Singapore, and internationally. The company operates through Trading, Treasury Operations, Flexible Packaging Films, and Tea segments.

IndustryCapital Markets

SectorFinancial Services

Employees37

Annual revenue₹360 Cr

How does it make money?

Turns over ₹360 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 37 employees supports ₹9.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.73 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. 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 ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +65% while net margin moved -96% 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+65%

Margin effect-96%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.75 — 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

63/ 100

Average

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

Valuation

83/ 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

6.0x

3Y Median

8.3x

40 monthly readings · mean 12.6x · range 1.5x–33.5x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 3y median of 8.3x. 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 90% below the peer median of 58.4x.

vs. its own history

Cheap

8.3x median over 40 months · -28%

vs. sector peers

Cheap

58.4x median of 3 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention4

Return on equity is falling
ROE has dropped from 12.9% to 0.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.5% to 1.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 95% against revenue growth of 65% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 7692% against revenue growth of 65% — stock may not be moving.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 305.9 points, from 337.7% to 31.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.1x to 4.3x.
🟡Profit is decliningFinancial
Net profit is down 94% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 90% 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?

Margins are being competed away
EBITDA margin has fallen from 337.7% to 31.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 12.9% to 0.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 14% a year✓ 18.3% CAGR
Latest reported year was 38.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 0.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 4.3x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 8.3x✓ 6.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

6 good · 2 neutral · 3 weak

Market Cap

₹550 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.0x

Cheap

Cheap against the generic band

P/B Ratio

0.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹150.42

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

1.8%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

38.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

151.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

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

Free Cash Flow

-₹595 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

46.9%

Good

Healthy core-business profitability

Net Margin

19.6%

Good

Strong bottom-line conversion

Current Ratio

2.99

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

954.4 / 979.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹218 Cr	₹379 Cr	₹437 Cr	₹360 Cr	+18.3%
EBITDA	₹734 Cr	₹204 Cr	₹260 Cr	₹114 Cr	-46.2%
EBITDA Margin	337.7%	53.9%	59.4%	31.8%	—
PAT (Net Profit)	₹293 Cr	₹49 Cr	₹91 Cr	₹18 Cr	-60.5%
EPS	₹480.16	₹80.14	₹148.88	₹29.49	-60.5%
ROE	12.9%	1.9%	3.4%	0.7%	—
ROCE	18.5%	4.1%	5.1%	1.8%	—
Total Debt	₹365 Cr	₹377 Cr	₹388 Cr	₹952 Cr	+37.7%
Free Cash Flow	₹24 Cr	₹41 Cr	-₹30 Cr	-₹595 Cr	—

🟢 Revenue has grown at 18.3% a year over 3 years.

🔴 EBITDA has shrunk at 46.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 337.7% to 31.8% over 3 years (-305.9 pts).

🔴 PAT (Net Profit) has shrunk at 60.5% a year over 3 years.

🔴 EPS has shrunk at 60.5% a year over 3 years.

🔴 ROE has fallen from 12.9% to 0.7% over 3 years (-12.2 pts).

🔴 ROCE has fallen from 18.5% to 1.8% over 3 years (-16.7 pts).

🔴 Total Debt has grown at 37.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹24 Cr to -₹595 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,096 Cr

Total Liabilities

₹1,590 Cr

Cash & Equivalents

₹95 Cr

Operating Cash Flow

₹137 Cr

Capex

-₹732 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.6%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

13 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 negative4 general

Dhunseri Investments Ltd Downgraded to Strong Sell Amid Technical and Fundamental Concerns

MarketsMojo, 13 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Dhunseri Investments Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Dhunseri Investments Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 10 Sept

Dhunseri Investments Ltd

Equitypandit, 18 Mar

Dhunseri Ventures (DVL.NS) Eases 1.31% to ₹275.05, Holding Above ₹261 Support - Dark Pool Prints

siam.in, 04 Oct

Dhunseri Investments approves MD reappointment and ₹3 dividend at AGM

scanx.trade, 20 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

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

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

WeakRisk

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 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑