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Dharani FinanceBOM:511451 +4.94%73 Return-on-Tangible-Asset is 4.70% as of Mar. 2026, which is 176% above its 10-year median of 1.70. GuruFocus rates BOM:511451 with a GF Score™ of 73/100 and a GF Value™ of ₹16.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 548 Credit Services companies, Dharani Finance ranks better than 81.02% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Dharani Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹5.29 Mil. Dharani Finance's average total tangible assets for the quarter that ended in Mar. 2026 was ₹112.42 Mil. Therefore, Dharani Finance's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 4.70%.
The historical rank and industry rank for Dharani Finance's Return-on-Tangible-Asset or its related term are showing as below:
BOM:511451'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.24 Med: 1.7 Max: 15.59
Current: 5.26
During the past 13 years, Dharani Finance's highest Return-on-Tangible-Asset was 15.59%. The lowest was -3.24%. And the median was 1.70%.
BOM:511451's Return-on-Tangible-Asset is ranked better than 81.02% of 548
companies
in the Credit Services industry
Industry Median: 1.93
vs BOM:511451: 5.26
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Dharani Finance Return-on-Tangible-Asset Related Terms
Dharani Finance Return-on-Tangible-Asset Historical Data
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The historical data trend for Dharani Finance's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Credit Services subindustry, Dharani Finance's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Dharani Finance's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 4.70% mean?
Dharani Finance (BOM:511451) has a Return-on-Tangible-Asset of 4.70% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Dharani Finance and its competitors. This is 176% above median its historical median of 1.70. According to the industry distribution chart, Dharani Finance ranks #104 out of 548 companies in the Credit Services industry, placing it in the top 19%.
Is Dharani Finance's Return-on-Tangible-Asset too high?
Dharani Finance's current Return-on-Tangible-Asset of 4.70% is 176% above median its 10-year median of 1.70. The Credit Services industry median Return-on-Tangible-Asset is 1.93. Dharani Finance's value of 4.70% is 143.5% above this industry median. Based on the distribution chart, Dharani Finance ranks #104 out of 548 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 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dharani Finance's Return-on-Tangible-Asset compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #104 out of 548 companies for Return-on-Tangible-Asset. This places Dharani Finance in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.93. Dharani Finance's value of 4.70% is 143.5% above this benchmark. While the company's 10-year median is 1.70 vs. the industry median of 1.93, Dharani Finance has consistently been above 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 Return-on-Tangible-Asset for a Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 1.93, based on 548 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current Return-on-Tangible-Asset of 4.70% is 143.5% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Dharani Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Asset is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current Return-on-Tangible-Asset is 4.70%, which is 176% above median its own 10-year median of 1.70. 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 ₹16.55, compared to a current price of ₹12.33 — trading 25.5% below its estimated fair value. The current Return-on-Tangible-Asset is 4.70%, which is 176% above median its 10-year median of 1.70 and 143.5% above the Credit Services industry median of 1.93. Dharani Finance's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current Return-on-Tangible-Asset is 4.70% 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 ₹12.33 is trading 25.5% below its estimated GF Value™ of ₹16.55.
GuruFocus considers Dharani Finance to be Modestly Undervalued.
Key valuation signals for BOM:511451:
Return-on-Tangible-Asset: 4.70% (176% above median its 10-year median of 1.70)
GF Value™: ₹16.55 vs. price of ₹12.33 (25.5% below fair value)
Industry Position: 143.5% above the Credit Services median (#104 of 548)
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.
73GF Score
Get the complete analysis for BOM:511451
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