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Dhanlaxmi Bank: Witness Multibagger Returns

Dhanlaxmi Bank Limited has delivered multi-bagger returns to its shareholders in the last one year, with its share price increasing by more than 130% from Rs 12.15 on October 03, 2022, to Rs 31.65 on October 03, 2023.

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 2.30 lakh today.

Dhanlaxmi Bank Limited was incorporated in 1927 in Thrissur, Kerala is a publicly held banking company engaged in providing a wide range of banking and financial services including retail banking, corporate banking, and treasury operations with a major concentration in Southern states.

Read: Indian Banking System Faces Unprecedented Liquidity Deficit

As of March 31, 2023, the bank had a presence across 14 States and 1 Union Territory through 253 branches, 270 ATMs and 17 business correspondents. The bank has obtained in-principal approval from the Reserve Bank of India for the opening of 12 more branches. 

In the recent quarter, Q1FY24, the company reported a 93.39% rise in its net profit at Rs 28.30 crore for the quarter ended June 30, 2023, as compared to a loss of Rs 26.43 crore for the same quarter in the previous year. The total income of the company increased by 44.16% at Rs 341.40 crore for Q1FY24 as compared to Rs 236.82 crore for the corresponding quarter previous year. 

The company is currently trading at a TTM PE of 35.67x, as against the industry PE of 8.20x. In FY22, the company delivered an ROE & ROCE of 31% and 34% respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 2,734.18 crore.

Today, the stock opened at Rs 29.62, with a high and low of Rs 32.13 and Rs 29.20. It is currently trading at Rs 31.70, up by 8.82%. The stock has a 52-week high of Rs 33.83 and a 52-week low of Rs 11.33.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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