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Dharani FinanceBOM:511451 +4.02%71 Debt-to-EBITDA is 1.00 as of Mar. 2026, which is 64% above its 10-year median of 0.61. GuruFocus rates BOM:511451 with a GF Score™ of 71/100 and a GF Value™ of ₹16.67 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 285 Credit Services companies, Dharani Finance ranks better than 88.07% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Dharani Finance's Debt-to-EBITDA or its related term are showing as below:
BOM:511451'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.04 Med: 0.61 Max: 4.84
Current: 0.73
During the past 13 years, the highest Debt-to-EBITDA Ratio of Dharani Finance was 4.84. The lowest was 0.04. And the median was 0.61.
BOM:511451's Debt-to-EBITDA is ranked better than 88.07% of 285
companies
in the Credit Services industry
Industry Median: 9
vs BOM:511451: 0.73
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Dharani Finance Debt-to-EBITDA Related Terms
Dharani Finance Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Dharani Finance's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:511451 vs V, MA, AXP: Debt-to-EBITDA Comparison
For the Credit Services subindustry, Dharani Finance's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dharani Finance Debt-to-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Dharani Finance's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Dharani Finance (BOM:511451) has a Debt-to-EBITDA of 1.00 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dharani Finance. This is 64% above median its historical median of 0.61. Over the past decade, Dharani Finance's Debt-to-EBITDA has ranged from 0.04 to 4.84. According to the industry distribution chart, Dharani Finance ranks #34 out of 285 companies in the Credit Services industry, placing it in the top 11.9%.
Is Dharani Finance's Debt-to-EBITDA too high?
Dharani Finance's current Debt-to-EBITDA of 1.00 is 64% above median its 10-year median of 0.61. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 4.84. The Credit Services industry median Debt-to-EBITDA is 9.00. Dharani Finance's value of 1.00 is 88.9% below this industry median. Based on the distribution chart, Dharani Finance ranks #34 out of 285 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Dharani Finance has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dharani Finance's Debt-to-EBITDA compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #34 out of 285 companies for Debt-to-EBITDA. This places Dharani Finance in the top 12% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 9.00. Dharani Finance's value of 1.00 is 88.9% below this benchmark. Historically, Dharani Finance's own Debt-to-EBITDA has ranged from 0.04 to 4.84 over the past decade. While the company's 10-year median is 0.61 vs. the industry median of 9.00, Dharani Finance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 9.00, based on 285 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current Debt-to-EBITDA of 1.00 is 88.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dharani Finance. For the Credit Services industry, the median Debt-to-EBITDA is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current Debt-to-EBITDA is 1.00, which is 64% above median its own 10-year median of 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dharani Finance stock overvalued right now?
Based on GuruFocus' analysis, Dharani Finance (BOM:511451) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹16.67, compared to a current price of ₹14.24 — trading 14.6% below its estimated fair value. The current Debt-to-EBITDA is 1.00, which is 64% above median its 10-year median of 0.61 and 88.9% below the Credit Services industry median of 9.00. Dharani Finance's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current Debt-to-EBITDA is 1.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dharani Finance (BOM:511451) Overvalued in 2026?
Based on GuruFocus' analysis, Dharani Finance stock appears to be undervalued.
The current stock price of ₹14.24 is trading 14.6% below its estimated GF Value™ of ₹16.67.
GuruFocus considers Dharani Finance to be Modestly Undervalued.
Key valuation signals for BOM:511451:
Debt-to-EBITDA: 1.00 (64% above median its 10-year median of 0.61)
GF Value™: ₹16.67 vs. price of ₹14.24 (14.6% below fair value)
Industry Position: 88.9% below the Credit Services median (#34 of 285)
No single metric tells the full story. See the BOM:511451 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dharani Finance Ltd is an Indian non-banking financial company (NBFC) engaged in providing financial services such as hire purchase finance, lease finance, and bill discounting. Dharani Finance caters to industrial and commercial enterprises. Company operates in single segment of NBFC activities. The company is also licensed by the Reserve Bank of India for foreign exchange money changing operations and has diversified activities including investment planning, tax consulting, and travel agency services. Majority of its revenue is generated from its core financial services business in hire purchase and leasing.
71GF Score
Get the complete analysis for BOM:511451
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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