1. At a Glance
An investment company trading at 0.33x its book value, with more cash than annual revenue, negative cash flows, and earnings driven almost entirely by “Other Income”? Naga Dhunseri is that mysterious stock that looks cheap but makes you wonder — is it cheap for a reason?
2. Introduction with Hook
Imagine being invited to a billionaires’ poker night… and finding out you’re just there to refill drinks. That’s what investing in Naga Dhunseri feels like. It’s a deep-value NBFC that technically qualifies as a stock, but practically lives in the shadows of its peers.
- Market Cap: ₹417 Cr vs Book Value: ₹1,280 Cr.
- Stock Price: ₹4,167 vs Book Value per share: ₹12,807.
- Net Profit for FY25: ₹27 Cr, but… ₹21 Cr came from other income.
Value? Yes. Growth? Eh. Operating business? Missing.
3. Business Model (WTF Do They Even Do?)
NDGL is a Non-Deposit Taking NBFC, classified as “Non-Systemically Important” — which is finance-speak for “we’re too small to cause trouble.”
Core business:
- Investment in shares, bonds, and securities.
- Acts as investor, underwriter, and financier.
- Also, oddly… can buy land and buildings.
Revenue drivers:
- Unrealized gains (hello volatility).
- Interest/dividend income (when it shows up).
- But real business operations? Nada.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (Cr) | ₹11.0 | ₹29.0 | ₹70.0 |
| Operating Profit (Cr) | ₹9.0 | ₹27.0 | ₹18.0 |
| Net Profit (Cr) | ₹70.0 | ₹34.0 | ₹27.0 |
| Other Income (Cr) | ₹63.0 | ₹11.0 | ₹21.0 |
| EPS (₹) | ₹704.2 | ₹338.4 | ₹272.2 |
| Dividend Payout | 0% | 1% | 0% |
| OPM | 85% | 93% | 25% |
Let’s be honest — revenue is erratic and profits are entirely market mood swings in disguise.
5. Valuation
Time for a sobering DCF or relative valuation? Nah. For NDGL, we stick to Net Asset Value logic:
- Book Value per Share: ₹12,807
- CMP: ₹4,167 → That’s 0.33x BV
- Historical median P/B: ~0.5–0.7x
Fair Value Range: ₹6,000 – ₹8,500
If the company ever decides to unlock value or reward shareholders. Till then, it’s the waiting game.
6. What’s Cooking – News, Triggers, Drama
- Trading window closed post June 2025 — Q1 results around the corner.
- Promoter holding steady at 73.58% — nobody’s selling, nobody’s buying.
- KYC and AGM notices out — legal hygiene, not business transformation.
- Zero DII/Institutional action. You’re truly on your own here.
Trigger? Maybe a strategic exit or investment unlocking. Or the next bull market irrationality.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹1 Cr | ₹1 Cr | ₹1 Cr |
| Reserves | ₹712 Cr | ₹865 Cr | ₹1,280 Cr |
| Borrowings | ₹0 Cr | ₹0 Cr | ₹258 Cr |
| Total Liabilities | ₹722 Cr | ₹885 Cr | ₹1,820 Cr |
| Investments | ₹704 Cr | ₹861 Cr | ₹850 Cr |
| Fixed + CWIP | ₹11 Cr | ₹11 Cr | ₹813 Cr |
| Other Assets | ₹7 Cr | ₹13 Cr | ₹156 Cr |
Key Point: Assets = Investments + Sudden jump in Fixed Assets (What are they building?)
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | -₹1 | -₹0 | -₹1 | -₹2 |
| FY24 | ₹5 | ₹0 | -₹1 | ₹4 |
| FY25 | -₹8 | -₹6 | ₹4 | -₹10 |
Cash burning like toast at 3 AM. No sustainable inflows.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 11% | 5% | 3% |
| ROE | 11% | 5% | 2.5% |
| OPM | 85% | 93% | 25% |
| Debt/Equity | 0 | 0 | 0.2 |
| Cash Conversion | 0 | 0 | 121 |
Verdict? Ratios indicate a company slowly morphing into a fixed-asset-heavy mystery.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Operating Profit | Net Profit | EPS | Other Income |
|---|---|---|---|---|---|
| FY23 | ₹11 Cr | ₹9 Cr | ₹70 Cr | ₹704 | ₹63 Cr |
| FY24 | ₹29 Cr | ₹27 Cr | ₹34 Cr | ₹338 | ₹11 Cr |
| FY25 | ₹70 Cr | ₹18 Cr | ₹27 Cr | ₹272 | ₹21 Cr |
In a nutshell: Other Income ≠ Bonus; it’s the Main Income.
11. Peer Comparison
| Name | CMP | P/E | ROE | ROCE | P/BV | PAT (12M) | Mcap |
|---|---|---|---|---|---|---|---|
| Bajaj Finance | ₹922 | 34.3 | 19.2% | 11.3% | 5.9 | ₹16,663 Cr | ₹5.72L Cr |
| Muthoot Finance | ₹2,650 | 19.9 | 19.6% | 13.1% | 3.6 | ₹5,332 Cr | ₹1.06L Cr |
| NDGL | ₹4,167 | 15.5 | 2.5% | 2.9% | 0.33 | ₹27 Cr | ₹417 Cr |
Yep — NDGL is the guy at the Mercedes party pulling up on a cycle rickshaw.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 73.58% — unchanged forever
- Public: 25.98%
- Institutions: Just 0.43% (token attendance)
- Total Shareholders: 2,837 (a small cult, really)
No signs of exit, entry, or intent to reward shareholders. No bonus, split, or dividend magic.
13. EduInvesting Verdict™
Naga Dhunseri is like that ₹100 note lying in your old jeans — looks valuable but still smells like mothballs. It’s a classic deep-value, P/B bargain on paper, but operationally — let’s be real — this is just a fancy investment shell with serious asset hoarding habits. Until they unlock value or make strategic moves, it’s just a glorified holding company trading on nostalgia.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: NBFC, Deep Value, Undervalued, Low ROE, Holding Company, Book Value Bargain, Asset-Rich Stocks
