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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 100.00 | ACUITE BBB | Stable | Assigned | - |
| Bank Loan Ratings | 131.47 | ACUITE BBB | Stable | Reaffirmed | - |
| Total Outstanding | 231.47 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs. 131.47 Cr. bank loan facilities of Dugar Finance and Investments Limited (DFIL). The outlook is 'Stable'.
Acuité has assigned the long term rating of ‘ACUITE BBB’ (read as ACUITE triple B) to the Rs. 100.00 Cr. bank loan facilities of Dugar Finance and Investments Limited (DFIL). The outlook is ‘Stable’. Rationale for the rating The rating takes into account DFIL’s sustained growth in AUM and profitability, healthy asset quality and adequate capitalisation levels. The company's AUM has increased from Rs 174.45 Cr. in FY 24 to Rs 236.49 Cr. in FY25. The company has seen further AUM growth to Rs 292.98 Cr. for 9MFY2026. The GNPA and NNPA stood at 0.79 percent and 0.64 percent respectively as on March 2025 as against GNPA of 0.70 percent and NNPA of 0.57 percent in previous year. The GNPA and NNPA further stood at 0.93 percent and 0.76 percent respectively as of 9MFY2026 . The CAR for 9MFY2026 stood at 21.50% . The rating continues to factor in the experienced management and operational track record. The company has track record of more than three decades in Vehicle Financing. The rating however is constrained by limited scale of operations and relatively higher leverage for FY25 at 2.67 times as against 2.62 times for FY24. Acuite takes note of expected capital infusion which would be beneficial for the sustained growth for the company. The ability of DFIL to maintain the growth in its Assets Under Management (AUM) while maintaining its profitability margins and containing its delinquencies across different time buckets will be key monitorable. |
| About the company |
| Incorporated in 1987, DFIL is a Chennai, Tamil Nadu, based non-banking finance company (NBFC) promoted by Mr. Ramesh Dugar and his wife Mrs. Sonali Dugar. The company is engaged in extending vehicle financing on hypothecation and lease and loan against property (LAP) towards SME borrowers. The day to day operations are managed by Mr. S. Rangaraj, CEO of DFIL. The company presently operates through a network of 36 branches spread across Tamil Nadu, Maharashtra, Gujarat, Karnataka, Madhya Pradesh and Rajasthan as on December 31, 2025. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of DFIL to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Established track record of operations with focus on Vehicle financing on hypothecation and lease
DFIL commenced its lending operations in 1987 upon registration as a Non-deposit taking Non-Banking Finance Company (NBFC-ND). The company mainly operates in Tamil Nadu, Maharashtra, Karnataka, Gujarat, Madhya Pradesh and Rajasthan with a network of 36 branches as on December 31, 2025. The company is promoted by Mr. Ramesh Dugar and his wife Mrs. Sonali Dugar. The promoters have over three decades of experience in financial services. Mr. Ramesh Dugar was the former Chairman of South Indian Hire Purchase Association and currently holds the position of President of Hindustan Chamber of Commerce. The day to day operations of DFIL are managed by Mr. S. Rangaraj. DFIL’s Board of Directors are supported by Mr. M.V. Balasubramanyam, Ex- Chief General Manager of Union Bank of India with over three decades experience in Banking & Treasury and Mr. V. Anburaj, Ex- General Manager of Karur Vysya Bank with over 38 Years of expertise in Banking & Finance. Further, DFIL has a long track record of operations in the vehicle financing segment. It has presence in Tamil Nadu for over three decades. DFIL’s loan book stood at Rs. 236.49 Cr. as on March 31, 2025 as against Rs. 174.45 Cr. as on March 31, 2024. Of the overall loan portfolio as on March 31, 2025, vehicle financing segment accounted for 67.96 percent and remaining loan against property (LAP) towards SME borrowers. For 9MFY2026, DFIL's loan book further increased to Rs 292.98 Cr, vehicle financing segment accounted for 66.51 percent and remaining loan against property (LAP) towards SME borrowers. Acuité believes that DFIL will continue to benefit from its established presence in the financial services industry along with the experienced promoters. Healthy Capitalization levels and improvement in earnings profile; The company’s loan portfolio stood at Rs 292.98 Cr. for 9MFY2026 as against Rs 236.49 Cr. as on March 31, 2025. The networth of the company increased to Rs. 57.46 Cr. as on March 31, 2025 from Rs 42.12 Cr. as on March 31, 2024. The company’s Capital adequacy ratio stood at 23.10 percent as on March 31,2025. The company has reported a PAT of Rs 6.71 Cr. as on March 31,2024 which improved to Rs 7.49 Cr. as on March 31,2025. The PAT improved to Rs 10.68 Cr. for the period 9MFY2026. DFIL’s earnings profile has improved owing to growth in AUM. Acuité expects the company to sustain its financial position on the back of its healthy capitalization buffers and maintaining a prudent capital structure. |
| Weakness |
| Limited scale of operations
DFIL commenced its lending operations in 1987. The company’s outstanding portfolio has improved by ~36 percent to Rs 236.49 Cr. as on March 31, 2025, as against Rs 174.45 Cr. as on March 31, 2024 this growth was aided by the moderate increase in disbursement level from Rs 81.11 Cr. in FY24 to Rs 110.01 Cr. in FY25. While the company has been focusing on loan portfolio growth over last few months, it continues to remain moderate. DFIL has presence in six states that is Tamil Nadu, Maharashtra, Gujrat, Karnataka, Madhya Pradesh and Rajasthan. The company’s LAP Portfolio is mainly present in Tamil Nadu,Gujarat and Maharashtra. The company's performance is expected to remain exposed to competitive landscape in these regions and occurrence of events such as natural calamities, which may adversely impact the credit profile of the borrowers. Besides geography, the company will be exposed to competition and any changes in the regulatory framework thereby impacting credit profile of DFIL. Acuité believes that the limited scale of operations will continue to weigh on the company’s credit profile over the near to medium term |
Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
| DFIL’s overall liquidity profile remains adequate with no negative cumulative mismatches in near to medium term as per ALM dated December 31, 2025. The company’s liquidity position is supported by a Cash and Bank Balance of Rs 11.61 Cr. & unutilised CC balance of Rs. 1.42 Cr, as on December 31, 2025. |
| Outlook: |
| Stable |
| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
**Total income equals to Net Interest Income plus other income. |
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| Status of non-cooperation with previous CRA (if applicable): |
| Not applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm |
| Note on complexity levels of the rated instrument |
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