Dhvija Finance Limited

Financial Services — Credit Services · BSE

₹10.48−₹0.07 (−0.66%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 8:29 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dhvija Finance Limited operates as a non-banking financial company in India. The company offers products, such as Personal Loans, Business Loans, and NCD Investments.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation.

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.

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 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 +932% while net margin moved -13% 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+932%

Margin effect-13%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.19 — 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

81/ 100

Excellent

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.1x

3Y Median

80.5x

40 monthly readings · mean 84.3x · range 23.1x–146.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 87% below its 3y median of 80.5x. 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 41% below the peer median of 17.0x.

vs. its own history

Cheap

80.5x median over 40 months · -87%

vs. sector peers

Cheap

17.0x median of 4 peers · -41%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.7x

PEG

0.09

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 35.7% to 42.1% over 3 years.
Return on equity is rising
ROE has improved from 6.7% to 13.8%.
Return on capital is rising
ROCE has improved from 6.2% to 10.8%.
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 187% 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 35.7% to 42.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 87% 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 41% 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?

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 88% a year✓ 117.8% CAGR
Latest reported year was 284.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 42.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 13.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 80.5x✓ 10.1x 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

4 good · 6 neutral · 1 weak

Market Cap

₹51 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.1x

Cheap

Cheap against the generic band

P/B Ratio

3.18x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.04

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

10.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

284.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

862.7%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

55.6%

Good

Healthy core-business profitability

Net Margin

32.4%

Good

Strong bottom-line conversion

Current Ratio

27.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.19

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

10.9 / 11.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹4 Cr	₹7 Cr	₹11 Cr	+117.8%
EBITDA	₹0 Cr	₹1 Cr	₹2 Cr	₹5 Cr	+130.0%
EBITDA Margin	35.7%	32.1%	35.8%	42.1%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+108.1%
EPS	₹0.14	₹0.21	₹0.33	₹0.45	+46.5%
ROE	6.7%	6.3%	11.7%	13.8%	—
ROCE	6.2%	7.5%	8.2%	10.8%	—
Total Debt	₹2 Cr	₹2 Cr	₹12 Cr	₹11 Cr	+90.5%
Free Cash Flow	-₹1 Cr	-₹9 Cr	-₹14 Cr	-₹6 Cr	—

🟢 Revenue has grown at 117.8% a year over 3 years.

🟢 EBITDA has grown at 130.0% a year over 3 years.

🟢 EBITDA Margin has risen from 35.7% to 42.1% over 3 years (+6.4 pts).

🟢 PAT (Net Profit) has grown at 108.1% a year over 3 years.

🟢 EPS has grown at 46.5% a year over 3 years.

🟢 ROE has risen from 6.7% to 13.8% over 3 years (+7.1 pts).

🟢 ROCE has risen from 6.2% to 10.8% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 90.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.7%

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

2 negative4 general

Dhvija Finance promoter releases pledge of 15.4 lakh shares

scanx.trade, 28 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Dhvija Finance: Promoter Pankaj Kumar Releases 15.4 Lakh Pledged Shares

Whalesbook, 28 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

DhanSafal Finserve (BSE:512048) - Stock Analysis

Simply Wall Street, 28 May

Dhvija Finance approves ₹5 crore Series-B NCD issue at 16% coupon

scanx.trade, 22 Aug

Shri Niwas Leasing & Finance (BSE:538897) - Stock Analysis

Simply Wall Street, 24 Sept

F Mec International appoints Ayushi Singh as company secretary

scanx.trade, 02 Sept

Watch Items

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 4 tripwires holding · see Key things to watch ↑