Alacrity Securities Limited

Financial Services — Capital Markets · BSE

₹41.95−₹0.82 (−1.92%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Alacrity Securities Limited offers stock broking and financial services in India.

IndustryCapital Markets

SectorFinancial Services

Employees13

Annual revenue₹399 Cr

How does it make money?

Turns over ₹399 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 13 employees supports ₹30.68 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹30.68 Cr

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.

Compared side by side in Peers ↓

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.

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 +93% while net margin moved -0% 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+93%

Margin effect-0%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 6.7% is weak
✗ ROE has fallen by 7.2 points over the period

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

67/ 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

20.1x

3Y Median

24.0x

40 monthly readings · mean 26.4x · range 8.0x–63.4x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 16% below its 3y median of 24.0x. 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 66% below the peer median of 58.4x.

vs. its own history

Fair

24.0x median over 40 months · -16%

vs. sector peers

Cheap

58.4x median of 3 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.2x

PEG

0.83

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention4

Return on equity is falling
ROE has dropped from 13.9% to 6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.4% to 10.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 269329% against revenue growth of 93% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 231% against revenue growth of 93% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 121% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 66% 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?

Returns on shareholder capital are falling
ROE has dropped from 13.9% to 6.7%. 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.

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

1Revenue growth stays above 18% a year✓ 24.4% CAGR
Latest reported year was 57.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 6.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 24.0x✓ 20.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

4 good · 5 neutral · 2 weak

Market Cap

₹196 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.09

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

10.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.38x

High

High leverage

Revenue Growth (YoY)

57.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

92.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.24%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹30 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.2%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

46.6 / 49.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹207 Cr	₹335 Cr	₹549 Cr	₹399 Cr	+24.4%
EBITDA	₹5 Cr	₹11 Cr	₹21 Cr	₹8 Cr	+14.3%
EBITDA Margin	2.6%	3.4%	3.9%	2.0%	—
PAT (Net Profit)	₹3 Cr	₹11 Cr	₹12 Cr	₹6 Cr	+24.3%
EPS	₹1.53	₹5.43	₹2.58	₹1.33	-4.6%
ROE	13.9%	25.3%	11.9%	6.7%	—
ROCE	23.4%	37.9%	15.9%	10.3%	—
Total Debt	₹8 Cr	₹2 Cr	₹5 Cr	₹9 Cr	+4.0%
Free Cash Flow	₹1 Cr	-₹13 Cr	-₹43 Cr	₹30 Cr	+216.4%

🟢 Revenue has grown at 24.4% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.0% over 3 years.

🟢 PAT (Net Profit) has grown at 24.3% a year over 3 years.

🔴 EPS has shrunk at 4.6% a year over 3 years.

🔴 ROE has fallen from 13.9% to 6.7% over 3 years (-7.2 pts).

🔴 ROCE has fallen from 23.4% to 10.3% over 3 years (-13.1 pts).

🔴 Total Debt has grown at 4.0% a year over 3 years.

🟢 Free Cash Flow has grown at 216.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹128 Cr

Total Liabilities

₹36 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹31 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.1%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

23 Sept 2026

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

2 mixed4 general

Alacrity Securities Share Price: Significant Gain Observed

Univest, 05 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Alacrity Securities Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Alacrity Securities Ltd leads losers in 'B' group

Business Standard, 21 Aug

Alacrity Securities 32nd AGM resolutions pass with unanimous vote

scanx.trade, 30 Sept

Alacrity Securities Ltd. (ALSL) Share Price Falls 17.13% Today

Univest, 21 AugPrice 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.

Alacrity Securities Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
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

MiddlingValuation

WeakBusiness Quality · Profitability · 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.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑