Dharani FinanceBOM:511451 +4.98%75 Altman Z-Score is 5.38 as of Jul. 01, 2026, which is 74% above its 10-year median of 3.10. GuruFocus rates BOM:511451 with a GF Score™ of 75/100 and a GF Value™ of ₹16.31 (Fairly Valued). The stock has 6 warning signs investors should review. Among 406 Credit Services companies, Dharani Finance ranks better than 78.82% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 5.01 is strong.
Dharani Finance has a Altman Z-Score of 5.38, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Dharani Finance's Altman Z-Score or its related term are showing as below:
BOM:511451'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.57 Med: 3.1 Max: 5.63
Current: 5.01
During the past 13 years, Dharani Finance's highest Altman Z-Score was 5.63. The lowest was 1.57. And the median was 3.10.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Dharani Finance Altman Z-Score Related Terms
Dharani Finance Altman Z-Score Historical Data
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The historical data trend for Dharani Finance's Altman Z-Score 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: Altman Z-Score Comparison
For the Credit Services subindustry, Dharani Finance's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Dharani Finance's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Dharani Finance's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.8404
+
1.4
*
0
+
3.3
*
0.0721
+
0.6
*
6.693
+
1.0
*
0.1162
=
5.38
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Dharani Finance (BOM:511451) has a Altman Z-Score of 5.38 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Dharani Finance and its competitors. This is 74% above median its historical median of 3.10. Over the past decade, Dharani Finance's Altman Z-Score has ranged from 1.57 to 5.63. According to the industry distribution chart, Dharani Finance ranks #86 out of 406 companies in the Credit Services industry, placing it in the top 21.2%.
Is Dharani Finance's Altman Z-Score too high?
Dharani Finance's current Altman Z-Score of 5.38 is 74% above median its 10-year median of 3.10. Over the past 10 years, this metric has ranged from a low of 1.57 to a high of 5.63. The Credit Services industry median Altman Z-Score is 1.74. Dharani Finance's value of 5.38 is 209.2% above this industry median. Based on the distribution chart, Dharani Finance ranks #86 out of 406 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 Altman Z-Score compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #86 out of 406 companies for Altman Z-Score. This places Dharani Finance in the top 21% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 1.74. Dharani Finance's value of 5.38 is 209.2% above this benchmark. Historically, Dharani Finance's own Altman Z-Score has ranged from 1.57 to 5.63 over the past decade. While the company's 10-year median is 3.10 vs. the industry median of 1.74, 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 Altman Z-Score for a Credit Services company?
The median Altman Z-Score among Credit Services companies is 1.74, based on 406 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dharani Finance's current Altman Z-Score of 5.38 is 209.2% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Dharani Finance and its competitors. For the Credit Services industry, the median Altman Z-Score is 1.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current Altman Z-Score is 5.38, which is 74% above median its own 10-year median of 3.10. 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 ₹16.31, compared to a current price of ₹16.23 — trading 0.5% below its estimated fair value. The current Altman Z-Score is 5.38, which is 74% above median its 10-year median of 3.10 and 209.2% above the Credit Services industry median of 1.74. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Dharani Finance (BOM:511451), the current Altman Z-Score is 5.38 as of Jul. 01, 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 ₹16.23 is trading 0.5% below its estimated GF Value™ of ₹16.31.
GuruFocus considers Dharani Finance to be Fairly Valued.
Key valuation signals for BOM:511451:
Altman Z-Score: 5.38 (74% above median its 10-year median of 3.10)
GF Value™: ₹16.31 vs. price of ₹16.23 (0.5% below fair value)
Industry Position: 209.2% above the Credit Services median (#86 of 406)
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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