Dolat Algotech Limited

Financial Services — Capital Markets · NSE

₹61.99+₹1.63 (+2.70%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dolat Algotech Limited engages in the proprietary trading of shares, securities, commodities, derivatives, and other financial products in India. The company was formerly known as Dolat Investments Limited and changed its name to Dolat Algotech Limited in November 2021.

IndustryCapital Markets

SectorFinancial Services

Employees137

Annual revenue₹330 Cr

How does it make money?

Turns over ₹330 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹63 left at the operating level before interest, tax and depreciation. Each of its 137 employees supports ₹2.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.41 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 +35% while net margin moved -18% 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+35%

Margin effect-18%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.5% is steady
✗ Profit CAGR of only 3.6%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

74/ 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

7.6x

3Y Median

9.4x

40 monthly readings · mean 10.4x · range 5.4x–21.5x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 3y median of 9.4x. 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 87% below the peer median of 58.4x.

vs. its own history

Fair

9.4x median over 40 months · -20%

vs. sector peers

Cheap

58.4x median of 3 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.6x

PEG

2.11

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.1% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.7% to 18.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.8 points, from 72.7% to 62.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 87% 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?

Margins are being competed away
EBITDA margin has fallen from 72.7% to 62.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 18.1% to 11.4%. 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 8% a year✓ 10.5% CAGR
Latest reported year was 28.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 61%✓ 62.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 11.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 9.4x✓ 7.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹1,091 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

0.97x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.18

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

28.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

39.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

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

Free Cash Flow

₹52 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

59.8%

Good

Healthy core-business profitability

Net Margin

37.0%

Good

Strong bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

63.6 / 68.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

15.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹245 Cr	₹336 Cr	₹469 Cr	₹330 Cr	+10.5%
EBITDA	₹178 Cr	₹237 Cr	₹331 Cr	₹208 Cr	+5.2%
EBITDA Margin	72.7%	70.5%	70.5%	62.9%	—
PAT (Net Profit)	₹116 Cr	₹157 Cr	₹215 Cr	₹129 Cr	+3.6%
EPS	₹6.59	₹8.94	₹12.24	₹7.32	+3.6%
ROE	18.1%	19.9%	21.5%	11.4%	—
ROCE	27.7%	29.7%	32.6%	18.1%	—
Total Debt	₹140 Cr	₹84 Cr	₹66 Cr	₹284 Cr	+26.5%
Free Cash Flow	₹78 Cr	₹21 Cr	-₹30 Cr	₹52 Cr	-12.7%

🟢 Revenue has grown at 10.5% a year over 3 years.

🟢 EBITDA has grown at 5.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 72.7% to 62.9% over 3 years (-9.8 pts).

🟢 PAT (Net Profit) has grown at 3.6% a year over 3 years.

🟢 EPS has grown at 3.6% a year over 3 years.

🔴 ROE has fallen from 18.1% to 11.4% over 3 years (-6.7 pts).

🔴 ROCE has fallen from 27.7% to 18.1% over 3 years (-9.6 pts).

🔴 Total Debt has grown at 26.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 12.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,536 Cr

Total Liabilities

₹405 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹56 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

30.8%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

04 Feb 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

3 mixed3 general

Dolat Algotech Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Dolat Algotech sets EGM on Nov 4 to ratify auditor and director appointments

scanx.trade, 13 Oct

Improved Earnings Required Before Dolat Algotech Limited (NSE:DOLATALGO) Shares Find Their Feet

Simply Wall Street, 10 DecResults

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

Why Is Dolat Algotech Share Price Falling Key Reasons 2026

Univest, 22 JunPrice 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.

Dolat Algotech CFO certifies CP proceeds use for Q3FY26

scanx.trade, 10 Oct

Dolat Algotech Share Price: Good Buy After Q1 FY27 Results?

Univest, 10 SeptResults

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

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

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability · Risk

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 4 tripwires holding · see Key things to watch ↑