Alphalogic Industries Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹131.55₹0.00 (0.00%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Alphalogic Industries Limited designs, manufactures, supplies, and installs industrial racking systems and customized storage solutions in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees9

Annual revenue₹45 Cr

How does it make money?

Turns over ₹45 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹5.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 26.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.3% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

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 +150% while net margin moved -2% 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+150%

Margin effect-2%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -1.55 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

73/ 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

25.2x

3Y Median

68.4x

40 monthly readings · mean 74.9x · range 43.6x–139.3x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 63% below its 3y median of 68.4x. 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 63% below the peer median of 68.5x.

vs. its own history

Cheap

68.4x median over 40 months · -63%

vs. sector peers

Cheap

68.5x median of 3 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.9x

PEG

0.72

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 68% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 26.0% 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 Attention2

Return on equity is falling
ROE has dropped from 50.6% to 18.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 74.7% to 26.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 4.08x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.0% 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.
Deleveraging frees up earnings
Debt is down 68% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 63% 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 63% 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?

Leverage amplifies any setback
Debt/Equity of 4.08x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 50.6% to 18.8%. 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.
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 27% a year✓ 35.8% CAGR
Latest reported year was -11.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹138 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.23

Profitable

Profitable on a per-share basis

ROE

21.3%

Strong

Strong capital efficiency

ROCE

26.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.08x

High

High leverage

Revenue Growth (YoY)

-11.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

152.1%

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 generative

Generates cash even after funding its capex

More Metrics

ROA

10.9%

Good

Assets are working hard

Operating Margin

13.9%

Average

Average margins

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

3.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.55

Defensive

Steadier than the market

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

140.4 / 141.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

5.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18 Cr	₹48 Cr	₹62 Cr	₹45 Cr	+35.8%
EBITDA	₹3 Cr	₹3 Cr	₹4 Cr	₹8 Cr	+32.6%
EBITDA Margin	18.5%	7.3%	7.0%	17.3%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹5 Cr	+34.9%
EPS	₹2.15	₹2.39	—	—	—
ROE	50.6%	12.3%	13.3%	18.8%	—
ROCE	74.7%	17.6%	19.4%	26.0%	—
Total Debt	₹4 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-31.9%
Free Cash Flow	-₹2 Cr	-₹3 Cr	₹3 Cr	₹4 Cr	—

🟢 Revenue has grown at 35.8% a year over 3 years.

🟢 EBITDA has grown at 32.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.5% to 17.3% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 34.9% a year over 3 years.

🔴 ROE has fallen from 50.6% to 18.8% over 3 years (-31.8 pts).

🔴 ROCE has fallen from 74.7% to 26.0% over 3 years (-48.7 pts).

🟢 Total Debt has shrunk at 31.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹35 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.1%

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 mixed4 general

Alphalogic Industries Share Price: price fall and valuation

Univest, 30 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Alphalogic Industries Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Alphalogic Industries declares AGM voting results; all resolutions pass

scanx.trade, 26 SeptResults

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

Alphalogic Industries Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Alphalogic Techsys Clarifies Recent Price Movement to BSE, Cites Market Conditions

scanx.trade, 13 Apr

ALPHALOGIC INDUSTRIES LIMITED Share Price

Upstox, 06 May

Watch Items

Revenue growth is negative (-11.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

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 ↑