Asset Quality Improvement
Expected: OngoingMEDIUM confidence
What: GNPA: 4.07%
Impact: Lower credit costs
Dhanlaxmi Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +35.0%AverageRe-Entry
In , Dhanlaxmi Bank Ltd (Banks - Private) is outperforming Nifty 500 with +35.0% relative strength. Fundamentals: Average.
Dhanlaxmi Bank Ltd Key Facts
- PE Ratio
- 12.4x
- Market Cap
- ₹1,269 Cr
- PAT Growth YoY
- +48%
- Revenue Growth YoY
- +26%
- RS vs Nifty 500
- +35.0%
PB: Near TroughStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
🌐FII stake increased 10.3% this quarter
🏦GNPA at 1.89% and improving — strong asset quality
💰Trading 44% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Asset Quality Improvement
OngoingMEDIUM
2. Value Added Product Mix Shift
FY26MEDIUM
Key Risks
1. RBI scrutiny over governance and capital adequacy levels
HIGH2. Rising staff costs due to bipartite settlements and pension provisions
MEDIUMSector-Specific Signals
Net Interest Margin3.08%-15 bps
CASA Ratio31.2%-80 bps
Gross NPA4.07%-74 bps
Provision Coverage Ratio88.14%+350 bps
Key Numbers
PAT Growth YoY
+48%
Stable
Revenue YoY
+26%
Stable
GNPA
1.89%
Improving
Price to Book
0.9
Current Price
₹32
Fundamental Score
59/100
Average
3Y PAT CAGR
+28%
Market Cap
1.3K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Dhanlaxmi Bank Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Value Added Product Mix Shift
Expected: FY26MEDIUM confidence
What: Gold Loan Growth: 18% YoY
Impact: Higher yields
What Are the Key Risks for Dhanlaxmi Bank Ltd?
Earnings deceleration risks from management commentary
RBI scrutiny over governance and capital adequacy levels
HIGHTrigger: RBI scrutiny over governance and capital adequacy levels.
Impact: PAT impact: Not Given
Management view: Initiated rights issue to bolster Tier-1 capital.
Monitor: regulatory
Rising staff costs due to bipartite settlements and pension provisions
MEDIUMTrigger: Rising staff costs due to bipartite settlements and pension provisions.
Impact: PAT impact: INR 25 Cr
Management view: Optimizing branch staffing and digital migration.
Monitor: labor
What Did Dhanlaxmi Bank Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 346.35 Cr
YoY +10.4%QoQ +1.2%
Growth driven by steady expansion in the retail loan book and higher yields on advances.
EBITDA
INR 42.15 Cr
YoY -8.5%Margin 12.17%
Operating profit declined due to increased employee costs following the implementation of the 12th Bipartite Settlement.
PAT
INR 2.03 Cr
YoY -92.8%QoQ -85.4%
Profitability was severely impacted by a one-time provision for pension liabilities and higher tax expenses.
Other Highlights
• Total business reached INR 25,000 Cr
• Employee cost rose 24% YoY
• Provision coverage ratio improved to 88%
What Sector Metrics Matter for Dhanlaxmi Bank Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
3.08%
YoY -15 bpsQoQ -5 bps
Why: Increased cost of deposits and competitive pricing in the retail segment.
CASA Ratio
31.2%
YoY -80 bpsQoQ +20 bps
Why: Shift of funds from savings accounts to higher-yielding term deposits.
Gross NPA
4.07%
YoY -74 bpsQoQ -12 bps
Why: Improved recovery and upgrades in the MSME and retail portfolios.
Provision Coverage Ratio
88.14%
YoY +350 bpsQoQ +110 bps
Why: Prudent provisioning on legacy stressed assets.
Tier-1 Capital Adequacy
11.25%
YoY -45 bpsQoQ -15 bps
Why: Risk-weighted asset growth and lack of fresh capital infusion.
What Is Dhanlaxmi Bank Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
13.5%
OPM Guidance
3.1%
Capex Plan
₹50 Cr
Revenue Outlook
12-15%
Margin Outlook
NIM expected to remain under pressure
Capex Plan
INR 50 Cr
IT Infrastructure and Digital Banking
Volume
Focus on increasing CASA share
Management Tone: CAUTIOUS
How Fast Is Dhanlaxmi Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +26% | +14% | Stable |
| PAT (Net Profit) | +48% | +28% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Dhanlaxmi Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Dhanlaxmi Bank Ltd's latest quarterly results?
Dhanlaxmi Bank Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +48.3% (stable)
- Revenue Growth YoY: +26.2%
- Net Interest Margin: 2.00%
- Gross NPA: 1.89%
Is Dhanlaxmi Bank Ltd's profit growing or declining?
Dhanlaxmi Bank Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +48.3% (latest quarter)
- PAT Growth QoQ: +79.2% (sequential)
- 3-Year PAT CAGR: +28.1%
- Trend: Stable — consistent growth pattern
What is Dhanlaxmi Bank Ltd's revenue growth trend?
Dhanlaxmi Bank Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +26.2%
- Revenue Growth QoQ: +8.8% (sequential)
- 3-Year Revenue CAGR: +14.3%
What is Dhanlaxmi Bank Ltd's asset quality trend?
Dhanlaxmi Bank Ltd's asset quality trend is improving.
- Gross NPA: 1.89%
- Net NPA: 0.51%
- GNPA Change YoY: -1.1% bps
What is Dhanlaxmi Bank Ltd's 3-year profit and revenue CAGR?
Dhanlaxmi Bank Ltd's long-term compounding rates
- 3-Year Profit CAGR: +28.1%
- 3-Year Revenue CAGR: +14.3%
Is Dhanlaxmi Bank Ltd's growth accelerating or decelerating?
Dhanlaxmi Bank Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: +28.3% bps
- Sequential Acceleration: +45.7% bps
What is Dhanlaxmi Bank Ltd's trailing twelve month (TTM) performance?
Dhanlaxmi Bank Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹102 Cr
- TTM PAT Growth: +52.2% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +21.3% YoY
Is Dhanlaxmi Bank Ltd overvalued or undervalued?
Dhanlaxmi Bank Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 12.4x
- Price-to-Book: 0.9x
What is Dhanlaxmi Bank Ltd's current PE ratio?
Dhanlaxmi Bank Ltd's current PE ratio is 12.4x.
- Current PE: 12.4x
- Market Cap: 1.3K Cr
How does Dhanlaxmi Bank Ltd's valuation compare to its history?
Dhanlaxmi Bank Ltd's current PE is 12.4x.
- Current PE: 12.4x
- Valuation Assessment: Significantly Overvalued
What is Dhanlaxmi Bank Ltd's price-to-book ratio?
Dhanlaxmi Bank Ltd's price-to-book ratio is 0.9x.
- Price-to-Book (P/B): 0.9x
- Book Value per Share: ₹37
- Current Price: ₹32
Is Dhanlaxmi Bank Ltd a fundamentally strong company?
Dhanlaxmi Bank Ltd is rated Average with a fundamental score of 59/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +48.3% (20% weight)
- PAT Growth QoQ: +79.2% (15% weight)
- Earnings trend: stable (5% weight)
Is Dhanlaxmi Bank Ltd debt free?
Dhanlaxmi Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹737 Cr
What is Dhanlaxmi Bank Ltd's return on equity (ROE) and ROCE?
Dhanlaxmi Bank Ltd's return ratios over recent years
- FY2024: ROE 6.0%
- FY2025: ROE 5.0%
- FY2026: ROE 7.0%
Is Dhanlaxmi Bank Ltd's cash flow positive?
Dhanlaxmi Bank Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹631 Cr
- Free Cash Flow (FCF): ₹-159 Cr
- CFO/PAT Ratio: 613% (strong cash conversion)
What is Dhanlaxmi Bank Ltd's dividend yield?
Dhanlaxmi Bank Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹32
Who holds Dhanlaxmi Bank Ltd shares — promoters, FII, DII?
Dhanlaxmi Bank Ltd's shareholding pattern (Mar 2026)
- FII (Foreign): 15.4%
- DII (Domestic): 0.1%
- Public: 84.5%
Is promoter holding increasing or decreasing in Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd's promoter holding is 0.0%.
- Current Promoter Holding: 0.0% (Mar 2026)
How long has Dhanlaxmi Bank Ltd been outperforming Nifty 500?
Dhanlaxmi Bank Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Is Dhanlaxmi Bank Ltd a new momentum entry or an established outperformer?
Dhanlaxmi Bank Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd has 2 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Reduction in bad loans directly reduces the provisioning burden on the bottom line.
- Value Added Product Mix Shift — Gold loans offer better risk-adjusted returns and lower capital consumption.
What are the key risks in Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd has 2 key risks worth monitoring
- [HIGH] RBI scrutiny over governance and capital adequacy levels — RBI scrutiny over governance and capital adequacy levels.
- [MEDIUM] Rising staff costs due to bipartite settlements and pension provisions — Rising staff costs due to bipartite settlements and pension provisions.
What is Dhanlaxmi Bank Ltd's management guidance for growth?
Dhanlaxmi Bank Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 13.5%
- OPM guidance: 3.1%
- Capex plan: ₹50 Cr for IT Infrastructure and Digital Banking
- Management tone: cautious
What sector-specific metrics matter most for Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin: 3.08% (YoY -15 bps) (QoQ -5 bps) — Increased cost of deposits and competitive pricing in the retail segment.
- CASA Ratio: 31.2% (YoY -80 bps) (QoQ +20 bps) — Shift of funds from savings accounts to higher-yielding term deposits.
- Gross NPA: 4.07% (YoY -74 bps) (QoQ -12 bps) — Improved recovery and upgrades in the MSME and retail portfolios.
- Provision Coverage Ratio: 88.14% (YoY +350 bps) (QoQ +110 bps) — Prudent provisioning on legacy stressed assets.
- Tier-1 Capital Adequacy: 11.25% (YoY -45 bps) (QoQ -15 bps) — Risk-weighted asset growth and lack of fresh capital infusion.
Is Dhanlaxmi Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Dhanlaxmi Bank Ltd may be worth studying
- Earnings growing at +48.3% YoY
- Cash flow is positive — CFO ₹631 Cr
What is the investment thesis for Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +26.2% YoY
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: RBI scrutiny over governance and capital adequacy levels
What is the future outlook for Dhanlaxmi Bank Ltd?
Dhanlaxmi Bank Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: RBI scrutiny over governance and capital adequacy levels
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.