Dhanlaxmi Bank Limited (DHANBANK) AI Stock Analysis

• Market Cap: ₹9.51B
• Dividend Yield: N/A
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.39
• Revenue Growth: 13.23%
• EPS Growth: 226.69%
• Country: IN
• Employees: 1,686
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 394,698,850
• 10 Day Avg. Volume: 105,345
• 30 Day Avg. Volume: 79,725
• PEG Ratio: 1.80
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹26.00 ▲(2.97% Upside)

Dhanlaxmi Bank's overall stock score is driven by a stable balance sheet and reasonable valuation, but is negatively impacted by liquidity challenges and bearish technical indicators. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Conservative leverage

A debt/equity of 0.14 indicates conservative leverage, giving the bank capacity to absorb credit stress and meet regulatory capital needs without aggressive recapitalization. This balance-sheet conservatism supports lending flexibility and resilience over the medium term.

Diversified banking franchise

A long operating history and a mix of retail, corporate and treasury businesses creates multiple stable deposit and fee income channels. That diversification reduces earnings volatility, enables cross-selling, and supports revenue stability over a 2–6 month horizon and beyond.

High gross margin

A reported 100% gross profit margin suggests efficient core revenue generation and tight direct cost control. Strong gross margins provide a buffer against declining net margins and afford management time to address top-line and cash conversion issues without immediate profit collapse.

Negative Factors

Negative operating and free cash flow

Material negative operating and free cash flows signal the bank struggles to convert accounting profits into cash. Persistent cash deficits constrain lending capacity, increase reliance on external funding, and create medium‑term liquidity and capital management pressures.

Sharp revenue contraction

A near 50% revenue decline represents structural pressure on core income sources rather than a transient blip. Such a steep top‑line fall undermines earning power, weakens reserve-building capacity, and limits ability to invest in growth or absorb credit losses over the coming months.

Eroding returns to shareholders

ROE declining from 7.95% to 4.78% reflects weakening profitability versus shareholder capital. Lower ROE constrains long‑term value creation, may pressure management to pursue higher‑risk growth to restore returns, and signals operational or asset‑quality headwinds over the medium term.

Dhanlaxmi Bank Limited Business Overview & Revenue Model

Company Description

Dhanlaxmi Bank Limited provides various banking and financial services in India. It operates through Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business Operations segments. The company offers deposit products, such as savings and current accounts, and term deposits; loans, including property, car, commercial, personal, education, and business loans, as well as loans against securities; and foreign exchange services comprising foreign currency cash, cheque deposits, foreign currency demand drafts, and remittances. It also provides export and import services; credit products comprising industrial and trade advance, import export assistance, and agricultural assistance; corporate salary accounts; and cash management services, as well as life, health, and car insurance products. In addition, the company offers non-resident Indians (NRI) banking services, such as non-residential external accounts, non-resident ordinary accounts, recurring and term deposits, foreign currency non-resident fixed deposits, and resident foreign currency accounts, as well as money transfer services and NRI property loans; and micro and agricultural banking, and financial planning services. Further, it provides SME banking services, including working capital facilities, trade facilities, and capacity expansion services; credit, debit, and gift cards; and investment, depository, and online banking services, as well as locker facilities. As of March 31, 2021, it had 245 branches and 257 ATMs across 14 States and 1 Union Territory. The company was incorporated in 1927 and is based in Thrissur, India.

How the Company Makes Money

Dhanlaxmi Bank generates revenue primarily through the interest income earned on loans and advances provided to customers, which constitutes a significant portion of its earnings. Additionally, the bank earns income from fees and commissions charged on various banking services, such as account maintenance, transaction processing, and financial advisory services. The bank also engages in investment activities, deriving income from the interest and dividends received on its investment portfolio. Furthermore, strategic partnerships with financial institutions and service providers enhance its product offerings, contributing to its revenue streams through cross-selling opportunities and increased customer engagement.

Dhanlaxmi Bank Limited Financial Statement Overview

Summary

Dhanlaxmi Bank's financial performance is mixed. Strong gross profit margins are overshadowed by declining net profit margins and significant revenue drops. The balance sheet is stable with low leverage, but cash flow issues are concerning, with negative operating and free cash flows indicating liquidity challenges.

Income Statement

Dhanlaxmi Bank's income statement shows a mixed performance. The gross profit margin remains strong at 100%, indicating efficient cost management. However, the net profit margin has decreased to 10.59% in 2025 from 13.35% in 2020, reflecting declining profitability. The revenue growth rate is concerning, with a significant drop of 49.13% in 2025, suggesting challenges in revenue generation. The EBIT and EBITDA margins are stable but have seen slight declines, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet of Dhanlaxmi Bank reflects a stable financial position with a low debt-to-equity ratio of 0.14 in 2025, indicating conservative leverage. The return on equity has decreased to 4.78% from 7.95% in 2020, showing reduced profitability for shareholders. The equity ratio remains healthy, suggesting a strong capital base. Overall, the bank maintains a solid balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow of -17.28 billion and free cash flow of -17.61 billion in 2025, indicating liquidity issues. The free cash flow growth rate is negative, highlighting cash flow constraints. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly above 1, indicating some alignment between cash flow and earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.41B	14.72B	13.29B	11.45B	10.86B	10.53B
Gross Profit	6.82B	6.36B	5.81B	5.50B	5.31B	4.52B
EBITDA	918.04M	969.51M	955.49M	527.21M	559.21M	579.66M
Net Income	868.21M	666.41M	578.22M	493.63M	359.04M	371.88M
Balance Sheet
Total Assets	187.00B	179.37B	159.62B	151.32B	137.96B	130.97B
Cash, Cash Equivalents and Short-Term Investments	12.84B	12.58B	12.12B	11.02B	10.01B	12.53B
Total Debt	4.20B	2.00B	2.99B	4.92B	1.50B	1.50B
Total Liabilities	172.95B	165.42B	149.32B	141.71B	128.96B	122.32B
Stockholders Equity	14.05B	13.95B	10.30B	9.61B	9.00B	8.64B
Cash Flow
Free Cash Flow	0.00	-17.61B	-1.23B	1.81B	-2.49B	-1.17B
Operating Cash Flow	0.00	-17.28B	-807.70M	2.16B	-2.33B	-902.52M
Investing Cash Flow	0.00	-323.00M	1.11B	-1.06B	-158.73M	-266.20M
Financing Cash Flow	0.00	18.65B	9.39B	9.49B	6.91B	-275.00M

Dhanlaxmi Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DHANBANK, the sentiment is Negative. The current price of 25.25 is above the 20-day moving average (MA) of 25.04, below the 50-day MA of 25.35, and below the 200-day MA of 27.24, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DHANBANK.

Dhanlaxmi Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	72 Outperform	₹11.67B	8.59	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DHANBANK	64 Neutral	₹9.51B	10.24	―	―	13.23%	226.69%
SURYODAY	57 Neutral	₹14.73B	21.51	―	―	―	―
ESAFSFB	52 Neutral	₹14.43B	-3.87	―	2.64%	-8.71%	-2192.08%
FINOPB	52 Neutral	₹18.08B	26.06	―	―	8.69%	-14.14%
UTKARSHBNK	45 Neutral	₹24.20B	-2.34	―	2.82%	2.35%	-261.81%

Dhanlaxmi Bank Limited Corporate Events

Dhanlaxmi Bank Confirms Regulatory Compliance on Demat of Equity Shares for Q3 FY2025-26

Dhanlaxmi Bank Limited has disclosed that it has received a confirmation certificate from its registrar and share transfer agent, KFin Technologies Limited, under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate confirms that during the period from October 1 to December 31, 2025, dematerialization requests for the bank’s equity shares were processed within the prescribed timelines, including approval or rejection of demat requests, confirmation that the underlying securities are listed on the relevant stock exchanges, prompt mutilation and cancellation of physical certificates, and updating of the register of members to reflect depositories as the registered owners where applicable. This disclosure underscores the bank’s ongoing compliance with securities market regulations and supports transparency and confidence for shareholders and market participants regarding the handling and dematerialization of its equity shares.

Dhanlaxmi Bank to Close Trading Window Ahead of Quarterly Results

Dhanlaxmi Bank Limited has announced that, in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, it will close its trading window for dealings in the bank’s securities by directors, designated persons, insiders, and connected persons from January 1, 2026 until 48 hours after the declaration of its financial results for the quarter ended December 31, 2025. The move is a routine governance measure aimed at preventing insider trading and ensuring that trading in the bank’s shares occurs only when all market participants have equal access to its financial information, reinforcing transparency and regulatory compliance for investors and stakeholders.

Dhanlaxmi Bank Extends Tenure of Additional Director

Dhanlaxmi Bank Limited has announced the extension of Shri. Nageswara Rao Chatradi’s term as an Additional Director on the Board for two more years, as approved by the Reserve Bank of India. This extension is expected to strengthen the bank’s governance, given Chatradi’s extensive experience in currency management, bank supervision, and financial inclusion, which could positively impact the bank’s strategic direction and stakeholder confidence.