Alankit Limited (ALANKIT) AI Stock Analysis

• Market Cap: ₹2.16B
• Dividend Yield: N/A
• Average Volume (3M): 26.17K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.39
• Revenue Growth: 19.69%
• EPS Growth: -33.44%
• Country: IN
• Employees: 1,001
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.28
• Shares Outstanding: 271,158,100
• 10 Day Avg. Volume: 25,893
• 30 Day Avg. Volume: 26,170
• PEG Ratio: -0.83
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 77.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹8.50 ▼(-20.34% Downside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 01/28/26

The score is anchored by a reasonably strong financial profile (low leverage, improving profitability and cash flow trends), but is materially weighed down by bearish technical signals (price below all key moving averages, negative MACD, weak RSI). Valuation is moderate (P/E ~13), offering some support but not enough to offset the current negative momentum.

Positive Factors

Very low leverage

A debt-to-equity of 0.04 signifies minimal financial leverage, giving Alankit durable balance-sheet resilience. Low debt reduces default and interest-rate risk, preserves borrowing capacity for strategic investments or acquisitions, and supports operations through economic cycles.

High gross margins

Consistently >50% gross margins indicate a structurally high-margin business model driven by fee-based capital market and issuer services. Durable margins provide pricing power and room to invest in technology, sales distribution, or margin-preserving efficiencies over the medium term.

Improving cash generation

The shift to positive free cash flow signals improving cash conversion and underlying operating health. Sustainable FCF enables reinvestment in systems and branches, gradual deleveraging or shareholder returns, and reduces dependence on external financing for strategic initiatives.

Negative Factors

Inconsistent revenue growth

Intermittent top-line growth and a recent revenue decline weaken long-term visibility and scale benefits for the business. For a fee-driven intermediary, unreliable revenue trends can compress operating leverage, complicate investment planning, and increase sensitivity to client or market-share shifts.

Modest free cash flow conversion

Although FCF turned positive, its modest size relative to net income limits internal funding for capex, M&A, or consistent shareholder payouts. Weak cash conversion increases vulnerability to working-capital swings and constrains the company's ability to finance growth without external capital.

Low/volatile profitability

A recovering but still modest ROE (6.7%) after prior deterioration indicates profitability is fragile and volatile. Persistently low ROE limits internal capital generation and may reflect competitive pressures or operational inefficiencies that could hinder sustained shareholder returns.

Alankit Limited Business Overview & Revenue Model

Company Description

Alankit Limited provides in e-governance products and services in India. The company operates in two segments, E- Governance and Financial Activities. It accepts permanent account number (PAN) card applications; change in PAN particulars applications; and e-TDS/e-TCS/AIR/e-TBAF returns in electronic mode from corporate and non-corporate assesses, as well as digitizes paper returns filed with income tax department. The company is also involved in the enrolment, uploading of details, correction/ updation in Aadhaar, a unique identification number; and development of National Skills Registry, a fact sheet of credible, permanent and accessible information about each registered person. In addition, it offers GST Suvidha Provider, an end to end goods and services tax (GST) compliance solution provider; manpower consultancy services; business correspondent services; National Insurance–Policy Repository services to store insurance policies electronically; GST Billing Software that creates e-way bills, tax invoices, quotes, and others; online GST registration services; kiosk banking services; and PAN card correction services, as well as provides services to apply for new and duplicate PAN card. Further, the company engages in the distribution of card printers and accessories; and implementation and management of Paper to Follow Process for the cheque truncation system. Additionally, it operates Atal Pension Yojana to encourage people to save small amounts during their productive years, which will enable them to draw pension in the old age; and Recordxpert.com, a web-based health and wellness portal for scanning and digitization of medical records. The company was formerly known as Euro Finmart Limited and changed its name to Alankit Limited in September 2014. Alankit Limited was incorporated in 1989 and is based in New Delhi, India.

How the Company Makes Money

Alankit generates revenue through multiple streams, primarily by providing services related to e-Governance, tax compliance, and financial services. Key revenue streams include fees for TIN facilitation, consultancy services for digital solutions, and commissions from financial transactions. The company has established significant partnerships with government agencies, which allow it to play a crucial role in the implementation of various public sector initiatives. Additionally, Alankit earns income from its IT solutions and software development services, which are tailored to meet the specific needs of its clients. The firm's ability to adapt to regulatory changes and client demands further solidifies its market position and contributes to its earnings.

Alankit Limited Financial Statement Overview

Summary

Solid balance sheet with very low leverage (debt-to-equity 0.04) and improved ROE (6.7% in 2025). Profitability is supported by strong gross margins (>50%) and improving EBIT/EBITDA margins, but revenue growth is inconsistent with a recent decline and free cash flow is improving yet still modest versus net income.

Income Statement

Alankit Limited demonstrates a mixed performance with strong gross profit margins consistently above 50%, reaching 52% in the latest period. However, the net profit margin has shown volatility, decreasing from 6.1% in 2024 to 8.5% in 2025. Revenue growth has been inconsistent, with a decline in the most recent period. EBIT and EBITDA margins show improvement, reflecting operational efficiency gains.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.04, indicating low leverage. Return on equity recovered to 6.7% in 2025 after a significant drop in previous years, showcasing improved profitability. The equity ratio stands robustly over 50%, reflecting financial stability.

Cash Flow

Cash flow analysis reveals improving trends with positive free cash flow in 2025 after negative figures in prior years. The operating cash flow to net income ratio suggests cash generation efficiency, although free cash flow remains modest compared to net income, indicating potential challenges in sustainable cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.30B	3.01B	2.36B	3.12B	1.28B	1.15B
Gross Profit	843.67M	930.42M	1.08B	619.74M	492.58M	274.44M
EBITDA	402.87M	451.60M	376.20M	-282.52M	184.80M	206.86M
Net Income	176.09M	198.57M	215.59M	-337.37M	23.57M	98.75M
Balance Sheet
Total Assets	0.00	4.25B	5.31B	3.02B	2.61B	1.65B
Cash, Cash Equivalents and Short-Term Investments	481.31M	481.31M	699.07M	212.31M	291.36M	74.34M
Total Debt	0.00	115.22M	436.36M	134.64M	208.71M	139.27M
Total Liabilities	-3.19B	1.05B	2.34B	1.21B	1.17B	670.43M
Stockholders Equity	3.19B	2.97B	2.76B	1.61B	1.33B	943.17M
Cash Flow
Free Cash Flow	0.00	50.79M	-708.66M	-764.82M	-263.45M	-68.58M
Operating Cash Flow	0.00	335.66M	95.98M	-494.04M	15.96M	-23.02M
Investing Cash Flow	0.00	-365.37M	-798.50M	-189.95M	-272.50M	-26.50M
Financing Cash Flow	0.00	-352.70M	1.22B	627.55M	406.76M	-29.70M

Alankit Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALANKIT, the sentiment is Negative. The current price of 10.67 is above the 20-day moving average (MA) of 9.21, above the 50-day MA of 9.83, and below the 200-day MA of 12.70, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 25.67 is Positive, neither overbought nor oversold. The STOCH value of 7.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALANKIT.

Alankit Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALANKIT	58 Neutral	₹2.16B	9.79	―	―	19.69%	-33.44%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AVG	55 Neutral	₹2.14B	12.39	―	0.66%	6.71%	-53.24%
MBLINFRA	49 Neutral	₹4.01B	-12.79	―	―	12.96%	-132.20%
LANCER	48 Neutral	₹2.35B	-10.73	―	―	-22.87%	-143.53%
IL&FSENGG	40 Underperform	₹3.30B	-237.21	―	―	-6.13%	98.35%

Alankit Limited Corporate Events

Alankit Files SEBI Regulation 74(5) Demat Compliance Certificate for December Quarter

Alankit Limited has submitted to BSE and NSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, issued by its registrar and share transfer agent Alankit Assignments Limited. The certificate confirms that all physical share certificates received for dematerialisation during the quarter pertained to securities already listed on the stock exchanges and that, after verification, these certificates were mutilated, cancelled and replaced in the company’s records with the depository as the registered owner, underscoring the company’s adherence to regulatory norms and the ongoing transition toward a fully dematerialised shareholding structure.