Anlon Technology Solutions Limited

Sector n/a · NSE

₹506.00+₹13.00 (+2.64%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

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

How does it make money?

Turns over ₹106 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation.

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

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +222% while net margin moved -3% 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+222%

Margin effect-3%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

35/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 26.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 309% over 3 years, from ₹3 Cr to ₹12 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.
🔴Receivables growing faster than salesFinancial
Receivables up 453% against revenue up 222% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 570% against revenue up 222% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 3.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% 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.
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 23.1% to 19.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 453% against revenue up 222%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 36% a year✓ 47.7% CAGR
Latest reported year was 110.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹317 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

19.1%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

110.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

113.8%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

40.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

13.1%

Good

Strong bottom-line conversion

Current Ratio

2.23

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

775.2 / 703.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹33 Cr	₹35 Cr	₹50 Cr	₹106 Cr	+47.7%
EBITDA	₹8 Cr	₹7 Cr	₹10 Cr	₹21 Cr	+39.8%
EBITDA Margin	23.1%	19.3%	19.7%	19.6%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹6 Cr	₹14 Cr	+46.2%
EPS	₹9.84	₹8.06	₹10.56	—	—
ROE	17.6%	15.2%	11.0%	19.1%	—
ROCE	26.4%	21.3%	15.3%	26.4%	—
Total Debt	₹3 Cr	₹3 Cr	₹8 Cr	₹12 Cr	+60.0%
Free Cash Flow	-₹10 Cr	-₹3 Cr	-₹28 Cr	-₹1 Cr	—

🟢 Revenue has grown at 47.7% a year over 3 years.

🟢 EBITDA has grown at 39.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.1% to 19.6% over 3 years (-3.5 pts).

🟢 PAT (Net Profit) has grown at 46.2% a year over 3 years.

🟢 ROE has risen from 17.6% to 19.1% over 3 years (+1.5 pts).

🟡 ROCE has held roughly flat at 26.4% over 3 years.

🔴 Total Debt has grown at 60.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹109 Cr

Total Liabilities

₹36 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹10 Cr

Recent News

1 positive2 mixed3 general

We Think You Should Be Aware Of Some Concerning Factors In Anlon Technology Solutions' (NSE:ANLON) Earnings

Simply Wall Street, 03 JunResults

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

Rs 110 Crore Order Book: Anlon Technology Solutions Reports 111% Revenue Growth In FY26; PAT Doubles

Dalal Street Investment Journal, 27 MayOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Anlon Technology Solutions allots 12.54 lakh shares at ₹398.50

scanx.trade, 04 Jun

Anlon Technology Solutions Limited Announces H2 FY26 & FY26 Results

Business Standard, 28 MayResults

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

Anlon Technology Solutions approves capital increase and preferential issue at EGM

scanx.trade, 25 May

Anlon Technology Solutions Limited's (NSE:ANLON) Share Price Could Signal Some Risk

Simply Wall Street, 18 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑