Dharni Capital (543753)

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 52.74% shows strong business momentum
• ROCE of 24.96% indicates efficient capital deployment
• Piotroski F-Score of 7/9 suggests solid fundamentals
• PEG of 0.75 implies growth is available at a reasonable price
• Latest quarter net margin of 50% displays high profitability, if sustainable

Concerns

• Current price ₹44.10 is below the 52-week range of ₹52.50-₹65.80, signaling possible distress or a breakdown
• Profit growth of 24.86% trails sales growth significantly, hinting at margin compression
• No dividend, no book value, no debt data, and no promoter holding details create transparency gaps
• Financial product distribution is a low-moat business vulnerable to competition and regulatory shifts

AI Analysis

At ₹44.10, Dharni Capital sits below its 52-week range of ₹52.50-₹65.80, which immediately raises my antenna. A market cap of just ₹92 Cr makes this a micro-cap, so I must demand a wide margin of safety. The business distributes financial products, an industry where moats are often shallow and competition fierce. That said, the numbers show a grower: sales up 52.74% and profits up 24.86%. The latest quarter had ₹4 Cr sales and ₹2 Cr net profit, implying a 50% net margin — remarkable if sustainable, but I suspect this could be lumpy or one-off. ROCE at 24.96% is genuinely strong, and the Piotroski F-Score of 7/9 suggests decent financial health, though I have no book value or debt figures to verify. The P/E of 29.02 is not cheap for a small distributor, but the PEG ratio of 0.75 suggests the growth is underpricing the stock if it can maintain momentum. However, profit growth lagging sales growth tells me margins may be under pressure or costs are rising. Zero dividend is acceptable for a reinvesting small company, but as Graham would say, I need a margin of safety. The stock trading below its 52-week low while showing strong growth is contradictory — either the market smells trouble or this is an opportunity. I cannot rely on incomplete data; I need promoter holding details, book value, and debt levels. For now, it's an interesting fast grower, but I would demand a deeper discount or more information before committing capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer