Dharani Finance (BOM:511451) ROCE %: 4.66% (As of Mar. 2026)


BOM:511451 Dharani Finance Ltd BOM:511451
75 GF Score
Price ₹14.73
GF Value ₹16.27
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Dharani Finance ROCE %?

Dharani Finance BOM:511451 +4.99% 75 ROCE % is 4.66% as of Mar. 2026. GuruFocus rates BOM:511451 with a GF Score™ of 75/100 and a GF Value™ of ₹16.27 (Fairly Valued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Dharani Finance's annualized ROCE % for the quarter that ended in Mar. 2026 was 4.66%.

Dharani Finance  (BOM:511451) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Dharani Finance ROCE % Related Terms

Dharani Finance ROCE % Historical Data

* Premium members only.

The historical data trend for Dharani Finance's ROCE % 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.

Dharani Finance ROCE % Chart

Dharani Finance Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.69 0.58 -0.87 8.45 7.43

Dharani Finance Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.54 7.32 9.22 9.22 4.66
BOM:511451
75GF Score
Dharani Finance Ltd BOM:511451
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Dharani Finance ROCE % Calculation

Dharani Finance's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=7.784/( ( (101.878 - 4.784) + (112.424 - 0.054) )/ 2 )
=7.784/( (97.094+112.37)/ 2 )
=7.784/104.732
=7.43 %

Dharani Finance's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=5.236/( ( (0 - 0) + (112.424 - 0.054) )/ 1 )
=5.236/( ( 0 + 112.37 )/ 1 )
=5.236/112.37
=4.66 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 4.66% mean?
Dharani Finance (BOM:511451) has a ROCE % of 4.66% as of Mar. 2026.
Is Dharani Finance's ROCE % too high?
Dharani Finance's current ROCE % is 4.66%. The Credit Services industry median ROCE % is 3.39. Dharani Finance's value of 4.66% is 37.5% above this industry median. 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 ROCE % compare to V and MA?
Dharani Finance's ROCE % of 4.66% can be compared against companies in the Credit Services industry. The industry median ROCE % is 3.39. Dharani Finance's value of 4.66% is 37.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Credit Services company?
The median ROCE % among Credit Services companies is 3.39, based on 417 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current ROCE % of 4.66% is 37.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median ROCE % is 3.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current ROCE % is 4.66%. 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 ROCE % is 4.66% and 37.5% above the Credit Services industry median of 3.39. Dharani Finance's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current ROCE % is 4.66% 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:

  • ROCE %: 4.66%
  • GF Value™: ₹16.27 vs. price of ₹14.73 (9.5% below fair value)
  • GF Score™: 75/100 with 5 warning signs
  • Industry Position: 37.5% above the Credit Services median

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 Business Description

Address New No.59 (Old No. 57) Sterling Road, PGP House, Nungambakkam, Chennai, TN, IND, 600034
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

Get the complete analysis for BOM:511451

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹14.73
Price
₹16.27
GF Value