Alchemist Corporation Limited

Industrials — Conglomerates · BSE

₹36.97₹0.00 (0.00%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Alchemist Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Alchemist Corporation Limited, together with its subsidiaries, operates as a software development and technology solutions company in India and internationally.

IndustryConglomerates

SectorIndustrials

Employees113

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 113 employees supports ₹4.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin1.6%

Net margin-1.5%

Revenue / employee₹4.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of -7.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-7.1%

ROE-17.2%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +352817% while net margin moved -100% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+352817%

Margin effect-100%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 16.0 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

20/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

40.05x

EV/EBITDA

249.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -12371.2% to 1.6% over 3 years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 412% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from -1.2% to -17.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -1.2% to -7.1% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 412% over 3 years, from ₹1 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 6.13x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.9x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -12371.2% to 1.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 33.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -1.2% to -17.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 1067% a year✓ 1422.5% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 33.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -0.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

40.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.04

Loss-making

Negative earnings per share — the business is losing money

ROE

-17.2%

Weak

Weak capital efficiency

ROCE

-7.1%

Weak

Low return on total capital employed

Debt/Equity

6.13x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

72.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹36.97

Operating Margin

2.8%

Weak

Thin margins leave little room for error

Net Margin

-0.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

37.0 / 36.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	—	—	₹5 Cr	+1422.5%
EBITDA	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EBITDA Margin	-12371.2%	—	—	1.6%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-0.36	₹0.13	₹-0.57	₹-0.16	—
ROE	-1.2%	0.6%	-49.9%	-17.2%	—
ROCE	-1.2%	1.1%	-36.0%	-7.1%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹3 Cr	+72.3%
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🟢 Revenue has grown at 1422.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -12371.2% to 1.6% over 3 years (+12372.9 pts).

🔴 ROE has fallen from -1.2% to -17.2% over 3 years (-16.0 pts).

🔴 ROCE has fallen from -1.2% to -7.1% over 3 years (-5.9 pts).

🔴 Total Debt has grown at 72.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5 Cr

Total Liabilities

₹5 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.1%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Alchemist Corporation Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Alchemist Corporation AGM resolutions pass with requisite majority

scanx.trade, 29 Sept

Alchemist Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

National Fertilizer reports consolidated net profit of Rs 113.38 crore in the June 2026 quarter

Business Standard, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Alchemist Corporation Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

TPL Stock Price and Chart — PSX:TPL

TradingView, 31 Dec

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched6/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding2.6/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 1067% a year1422.5% CAGR
✓EBITDA margin holds above 0%1.6%
✗Debt / EBITDA falls below 3x33.4x
✗Free cash flow remains positive-₹0 Cr
✗Interest cover stays above 3x-0.9x