Algoquant Fintech Limited

Financial Services — Capital Markets · NSE

₹72.75+₹2.58 (+3.68%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Algoquant Fintech Limited engages in the trading of financial instruments in India. The company was formerly known as Hindustan Everest Tools Limited and changed its name to Algoquant Fintech Limited in November 2021.

IndustryCapital Markets

SectorFinancial Services

Employees250

Annual revenue₹227 Cr

How does it make money?

Turns over ₹227 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 250 employees supports ₹90.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin25.5%

Net margin14.7%

Revenue / employee₹90.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE26.6%

ROE24.8%

Peer median ROE13.7%

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 +1450% while net margin moved -163% 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+1450%

Margin effect-163%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 44.9x is demanding — it needs sustained high growth to justify
✗ P/B of 15.15x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

48/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.9x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 23% below the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

58.4x median of 3 peers · -23%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.9x

P/B

15.15x

EV/EBITDA

35.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -31.9% to 25.5% over 3 years.
Return on equity is rising
ROE has improved from -10.0% to 24.8%.
Return on capital is rising
ROCE has improved from -14.3% to 26.6%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 30% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -31.9% to 25.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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.

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

1Revenue growth stays above 112% a year✓ 149.4% CAGR
Latest reported year was 42.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 25.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 23%✓ 24.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 8.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

10 / 11 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)
✓ Revenue growing year-over-year
✓ 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

7 good · 2 neutral · 2 weak

Market Cap

₹2,045 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

15.15x

Rich

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

EPS (TTM)

₹1.62

Profitable

Profitable on a per-share basis

ROE

24.8%

Strong

Strong capital efficiency

ROCE

26.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

42.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

268.8%

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

₹57 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹72.75

Operating Margin

32.3%

Good

Healthy core-business profitability

Net Margin

17.6%

Good

Strong bottom-line conversion

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

69.8 / 67.2

Bullish alignment (short > long)

RSI (14)

49.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹131 Cr	₹228 Cr	₹227 Cr	+149.4%
EBITDA	-₹5 Cr	₹46 Cr	₹51 Cr	₹58 Cr	—
EBITDA Margin	-31.9%	35.3%	22.4%	25.5%	—
PAT (Net Profit)	-₹3 Cr	₹25 Cr	₹32 Cr	₹33 Cr	—
EPS	₹-0.2	₹0.87	₹1.13	₹1.19	—
ROE	-10.0%	35.7%	31.6%	24.8%	—
ROCE	-14.3%	54.9%	40.2%	26.6%	—
Total Debt	₹30 Cr	₹65 Cr	₹34 Cr	₹4 Cr	-47.2%
Free Cash Flow	-₹38 Cr	-₹17 Cr	₹57 Cr	₹57 Cr	—

🟢 Revenue has grown at 149.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹5 Cr to ₹58 Cr.

🟢 EBITDA Margin has risen from -31.9% to 25.5% over 3 years (+57.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹33 Cr.

🟢 EPS has turned positive, from ₹-0.2 to ₹1.19.

🟢 ROE has risen from -10.0% to 24.8% over 3 years (+34.8 pts).

🟢 ROCE has risen from -14.3% to 26.6% over 3 years (+40.8 pts).

🟢 Total Debt has shrunk at 47.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹38 Cr to ₹57 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹275 Cr

Total Liabilities

₹141 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

₹60 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.5%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

6 general

Algoquant Fintech (ALGOQUANT) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Algoquant Fintech | Stock Share Price Live

MarketSmith India, 20 Aug

Algoquant Fintech invests ₹52.5 lakh in subsidiary AQ Capital Services

scanx.trade, 14 Oct

Algoquant Fintech Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

ALGOQUANT Stock Price and Chart — NSE:ALGOQUANT

TradingView, 06 Jan

Algoquant Fintech Share Price Forecast: 3 Year Outlook to 2030

Univest, 10 Jul

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong12.9/15

🔴ValuationDemanding3.2/15

🔴RiskHigh4.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 112% a year149.4% CAGR
✓EBITDA margin holds above 23%25.5%
✓Return on equity stays above 23%24.8%
✓Interest cover stays above 4x8.0x