Dharani Finance Ltd Valuation

DHARFIN · Financial Services · Current price ₹13

Full stock page
DocStoX fair value
₹16
low confidence
Current price
₹13
Upside
+21.0%
P/E ratio
7.7x
P/B ratio
0.7x
Verdict
Fairly Valued
Model it yourself — Earnings Yield Calculator
Opens pre-filled with Dharani Finance Ltd's latest numbers.

Is Dharani Finance Ltd undervalued?

DocStoX estimates the fair value of Dharani Finance Ltd at ₹16 per share, versus the current market price of ₹13. That puts the stock about +21.0% below our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 2 independent methods: Excess-return (book value) (₹19), Relative P/E (₹7). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹7 (bear) to ₹16 (base) to ₹19 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

Dharani Finance Ltd trades at a P/E of 7.7x and a P/B of 0.7x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on Dharani Finance Ltd

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.