Alphalogic Techsys Limited

Technology — Information Technology Services · BSE

₹35.00−₹1.04 (−2.89%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Alphalogic Techsys Limited, together with its subsidiary, provides information technology consulting solutions and support services in India. It operates through Information Technology, Biofuels, and Investment segments.

IndustryInformation Technology Services

SectorTechnology

Employees12

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹4.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. 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?Little sign of one

Returns on capital of 10.0% 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.

Peer median ROE32.0%

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 +127% while net margin moved -36% 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+127%

Margin effect-36%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 10.0% is below 10% — capital is not working hard
✗ ROCE has fallen by 10.6 points — returns are eroding
✓ EBITDA margin of 22.8% points to real pricing power
• Net margin of 10.4% is reasonable
• Revenue has compounded at 31.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

52/ 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

28.7x

3Y Median

107.7x

40 monthly readings · mean 133.9x · range 43.9x–442.2x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 73% below its 3y median of 107.7x. 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 73% above the peer median of 16.5x.

vs. its own history

Cheap

107.7x median over 40 months · -73%

vs. sector peers

Expensive

16.5x median of 4 peers · +73%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.0x

PEG

2.12

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 20.6% to 10.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 542% over 3 years, from ₹7 Cr to ₹46 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Margins are compressingFinancial
EBITDA margin is down 4.2 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 164% against revenue up 127% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 73% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 27.0% to 22.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 164% against revenue up 127%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 73% above the peer median. That premium needs a reason that persists, or it closes.
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 24% a year✓ 31.5% CAGR
Latest reported year was -11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 22.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
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✗ -₹42 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

1 good · 8 neutral · 2 weak

Market Cap

₹219 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.22

Profitable

Profitable on a per-share basis

ROE

9.6%

Moderate

Moderate capital efficiency

ROCE

10.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

-11.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

3.8%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹42 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.0%

Good

Healthy core-business profitability

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

7.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

38.7 / 40.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹54 Cr	₹78 Cr	₹51 Cr	+31.5%
EBITDA	₹6 Cr	₹8 Cr	₹9 Cr	₹12 Cr	+24.3%
EBITDA Margin	27.0%	14.3%	11.4%	22.8%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹5 Cr	₹5 Cr	+13.6%
EPS	₹0.54	₹0.67	₹0.78	₹0.8	+13.6%
ROE	12.3%	10.4%	10.3%	9.6%	—
ROCE	20.6%	15.6%	15.4%	10.0%	—
Total Debt	₹7 Cr	₹5 Cr	₹1 Cr	₹46 Cr	+85.8%
Free Cash Flow	-₹9 Cr	-₹3 Cr	-₹4 Cr	-₹42 Cr	—

🟢 Revenue has grown at 31.5% a year over 3 years.

🟢 EBITDA has grown at 24.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.0% to 22.8% over 3 years (-4.2 pts).

🟢 PAT (Net Profit) has grown at 13.6% a year over 3 years.

🟢 EPS has grown at 13.6% a year over 3 years.

🔴 ROE has fallen from 12.3% to 9.6% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 20.6% to 10.0% over 3 years (-10.6 pts).

🔴 Total Debt has grown at 85.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹118 Cr

Total Liabilities

₹52 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹31 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.2%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive5 general

Alphalogic Techsys Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

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

scanx.trade, 13 Apr

Alphalogic Techsys shareholders approve 18 lakh warrant issuance

scanx.trade, 22 Aug

ALPHALOGIC Stock Price and Chart — BSE:ALPHALOGIC

TradingView, 06 Sept

14:48 Bonus Issue Declared: IT Stock Jumps 173.60% In 30-Days, Shares Hit Upper Circuit

Goodreturns, 22 MayCapital return

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

Alphalogic Techsys Receives Environment Clearance Nod for Its Ethanol Project

The Times of India, 22 Jun

Watch Items

Revenue growth is negative (-11.5%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

MiddlingBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑