Alldigi Tech Limited

Industrials — Specialty Business Services · NSE

₹799.00−₹15.75 (−1.93%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Alldigi Tech Limited, a business process and HR technology company, provides business process solutions in India and internationally. The company operates through two segments, Business Process Management (BPM) and Technology & Digital (T&D).

IndustrySpecialty Business Services

SectorIndustrials

Employees5,260

Annual revenue₹599 Cr

How does it make money?

Turns over ₹599 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 5,260 employees supports ₹11.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹11.4 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 32.8% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +53% while net margin moved +10% 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+53%

Margin effect+10%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

85/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.2x

3Y Median

20.9x

40 monthly readings · mean 20.5x · range 12.9x–36.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 32% below its 3y median of 20.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 84% below the peer median of 88.8x.

vs. its own history

Cheap

20.9x median over 40 months · -32%

vs. sector peers

Cheap

88.8x median of 3 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.8x

PEG

0.75

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 24.1% to 28.1% over 3 years.
Cash generation is improving
Free cash flow is up 107% over 3 years.
Return on equity is rising
ROE has improved from 21.3% to 32.8%.
High return on capital employed
ROCE of 25.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 288% over 3 years, from ₹44 Cr to ₹171 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 24.1% to 28.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 32% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 84% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

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 11% a year✓ 15.3% CAGR
Latest reported year was 4.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 28.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹116 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 4 neutral · 0 weak

Market Cap

₹1,218 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.2x

Cheap

Cheap against the generic band

P/B Ratio

4.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹56.08

Profitable

Profitable on a per-share basis

ROE

32.8%

Strong

Strong capital efficiency

ROCE

25.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.4%

Modest

Modest growth

Profit Growth (YoY)

21.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

7.51%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹116 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

16.8%

Good

Healthy core-business profitability

Net Margin

14.1%

Good

Strong bottom-line conversion

Current Ratio

2.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

786.7 / 798.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹390 Cr	₹469 Cr	₹546 Cr	₹599 Cr	+15.3%
EBITDA	₹94 Cr	₹121 Cr	₹134 Cr	₹168 Cr	+21.4%
EBITDA Margin	24.1%	25.7%	24.6%	28.1%	—
PAT (Net Profit)	₹49 Cr	₹64 Cr	₹83 Cr	₹82 Cr	+18.9%
EPS	₹32.06	₹42	₹54.66	₹53.96	+19.0%
ROE	21.3%	26.1%	32.1%	32.8%	—
ROCE	26.0%	31.8%	36.9%	25.5%	—
Total Debt	₹44 Cr	₹45 Cr	₹63 Cr	₹171 Cr	+57.2%
Free Cash Flow	₹56 Cr	₹73 Cr	₹101 Cr	₹116 Cr	+27.5%

🟢 Revenue has grown at 15.3% a year over 3 years.

🟢 EBITDA has grown at 21.4% a year over 3 years.

🟢 EBITDA Margin has risen from 24.1% to 28.1% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 18.9% a year over 3 years.

🟢 EPS has grown at 19.0% a year over 3 years.

🟢 ROE has risen from 21.3% to 32.8% over 3 years (+11.5 pts).

🟡 ROCE has held roughly flat at 25.5% over 3 years.

🔴 Total Debt has grown at 57.2% a year over 3 years.

🟢 Free Cash Flow has grown at 27.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹519 Cr

Total Liabilities

₹268 Cr

Cash & Equivalents

₹85 Cr

Operating Cash Flow

₹144 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

75.8%

Corporate Actions

Dividend Rate

₹60

Ex-Dividend Date

31 Jul 2026

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

3 positive1 mixed2 general

Alldigi Tech Limited (NSE:ALLDIGI) Stock Goes Ex-Dividend In Just Three Days

Simply Wall Street, 31 JanCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Alldigi Tech: Best Stock in Its Sector? Key Metrics

Univest, 18 Sept

Alldigi Tech to host analyst call on September 30, 2026

scanx.trade, 30 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Alldigi Tech shares rise 3.51% as board set to consider Q1 results and interim dividend tomorrow

Moneycontrol.com, 23 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Alldigi Tech Declares ₹30 Interim Dividend for FY26

HDFC Sky, 04 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Alldigi Tech (ALLDIGI.NS) Trades Flat at ₹802.7, Holds Mid-Range Between Key Levels - Beta Neutral Pair

siam.in, 10 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑