Dharani FinanceBOM:511451 +4.99%75 ROA % 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 75/100 and a GF Value™ of ₹16.27 (Fairly Valued). The stock has 6 warning signs investors should review. Among 546 Credit Services companies, Dharani Finance ranks better than 81.87% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dharani Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹5.29 Mil.
Dharani Finance's average Total Assets over the quarter that ended in Mar. 2026 was ₹112.42 Mil. Therefore, Dharani Finance's annualized ROA % for the quarter that ended in Mar. 2026 was 4.70%.
The historical rank and industry rank for Dharani Finance's ROA % or its related term are showing as below:
BOM:511451'
s ROA % 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 ROA % was 15.59%. The lowest was -3.24%. And the median was 1.70%.
BOM:511451's ROA % is ranked better than 81.87% of 546
companies
in the Credit Services industry
Industry Median: 1.915
vs BOM:511451: 5.26
Dharani Finance (BOM:511451) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Dharani Finance ROA % Related Terms
Dharani Finance ROA % Historical Data
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The historical data trend for Dharani Finance's ROA % 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.
For the Credit Services subindustry, Dharani Finance's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's ROA % distribution charts can be found below:
* The bar in red indicates where Dharani Finance's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Dharani Finance (BOM:511451) has a ROA % of 4.70% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total 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 #99 out of 546 companies in the Credit Services industry, placing it in the top 18.1%.
Is Dharani Finance's ROA % too high?
Dharani Finance's current ROA % of 4.70% is 176% above median its 10-year median of 1.70. The Credit Services industry median ROA % is 1.92. Dharani Finance's value of 4.70% is 145.4% above this industry median. Based on the distribution chart, Dharani Finance ranks #99 out of 546 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 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dharani Finance's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #99 out of 546 companies for ROA %. This places Dharani Finance in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 1.92. Dharani Finance's value of 4.70% is 145.4% above this benchmark. While the company's 10-year median is 1.70 vs. the industry median of 1.92, 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 ROA % for a Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current ROA % of 4.70% is 145.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Dharani Finance and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current ROA % 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 Fairly Valued. The stock's GF Value™ is ₹16.27, compared to a current price of ₹14.73 — trading 9.5% below its estimated fair value. The current ROA % is 4.70%, which is 176% above median its 10-year median of 1.70 and 145.4% above the Credit Services industry median of 1.92. Dharani Finance's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current ROA % 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 ₹14.73 is trading 9.5% below its estimated GF Value™ of ₹16.27.
GuruFocus considers Dharani Finance to be Fairly Valued.
Key valuation signals for BOM:511451:
ROA %: 4.70% (176% above median its 10-year median of 1.70)
GF Value™: ₹16.27 vs. price of ₹14.73 (9.5% below fair value)
Industry Position: 145.4% above the Credit Services median (#99 of 546)
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.
75GF Score
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