Dharani FinanceBOM:511451 +4.99%75 ROE % is 5.27% as of Mar. 2026, which is 170% above its 10-year median of 1.95. 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. Among 529 Credit Services companies, Dharani Finance ranks worse than 53.12% on this metric.
The historical rank and industry rank for Dharani Finance's ROE % or its related term are showing as below:
BOM:511451'
s ROE % Range Over the Past 10 Years
Min: -3.63 Med: 1.95 Max: 17.72
Current: 5.69
During the past 13 years, Dharani Finance's highest ROE % was 17.72%. The lowest was -3.63%. And the median was 1.95%.
BOM:511451's ROE % is ranked worse than 53.12% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs BOM:511451: 5.69
Dharani Finance (BOM:511451) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Dharani Finance ROE % Related Terms
Dharani Finance ROE % Historical Data
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The historical data trend for Dharani Finance's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's ROE % distribution charts can be found below:
* The bar in red indicates where Dharani Finance's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Dharani Finance (BOM:511451) has a ROE % of 5.27% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dharani Finance and its competitors. This is 170% above median its historical median of 1.95. According to the industry distribution chart, Dharani Finance ranks #281 out of 529 companies in the Credit Services industry, placing it in the top 53.1%.
Is Dharani Finance's ROE % too high?
Dharani Finance's current ROE % of 5.27% is 170% above median its 10-year median of 1.95. The Credit Services industry median ROE % is 6.61. Dharani Finance's value of 5.27% is 20.3% below this industry median. Based on the distribution chart, Dharani Finance ranks #281 out of 529 companies in the Credit Services industry, which is below the industry midpoint. 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 ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #281 out of 529 companies for ROE %. This places Dharani Finance in the lower half of its industry. The industry median ROE % is 6.61. Dharani Finance's value of 5.27% is 20.3% below this benchmark. While the company's 10-year median is 1.95 vs. the industry median of 6.61, 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current ROE % of 5.27% is 20.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dharani Finance and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current ROE % is 5.27%, which is 170% above median its own 10-year median of 1.95. 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 ROE % is 5.27%, which is 170% above median its 10-year median of 1.95 and 20.3% below the Credit Services industry median of 6.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current ROE % is 5.27% 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:
ROE %: 5.27% (170% above median its 10-year median of 1.95)
GF Value™: ₹16.27 vs. price of ₹14.73 (9.5% below fair value)
Industry Position: 20.3% below the Credit Services median (#281 of 529)
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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