Alankit Limited (ALANKIT) AI Stock Analysis

• Market Cap: ₹2.06B
• Dividend Yield: N/A
• Average Volume (3M): 26.17K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.27
• 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: ₹8.00 ▼(-25.02% 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

Low leverage / strong balance sheet

Very low debt-to-equity (0.04) gives the company durable financial flexibility. Low leverage reduces interest burden, supports operations during market stress, and preserves capacity for strategic investments or opportunistic M&A without threatening solvency over the next 2-6 months.

High gross margins (>50%)

Sustained gross margins above 50% reflect a capital-light, service-oriented model with pricing power. High gross profitability provides a durable cushion to absorb SG&A or variable trading volumes and supports scalable operating margin expansion over the medium term.

Improving ROE and operating margins

Recovery in ROE to 6.7% alongside improving EBIT/EBITDA margins indicates rising capital efficiency and operational execution. These trends suggest management is improving returns on shareholder equity and converting revenue into profit more effectively over coming quarters.

Negative Factors

Inconsistent revenue growth and recent decline

Top-line inconsistency and a recent revenue decline undermine predictability for a fee-driven services business. Persistent variability in revenues hampers scaling, complicates budgeting for technology or branch expansion, and risks stalling durable margin improvements.

Modest free cash flow relative to net income

Although free cash flow turned positive, its modest size versus net income indicates weaker cash conversion. This constrains discretionary actions—dividends, buybacks, or reinvestment—and reduces the company's buffer against cyclical downturns over the medium term.

Volatile net profit margins

Observed swings in net profit margins point to earnings sensitivity to transaction volumes or cost fluctuations. Margin volatility weakens forecasting accuracy, complicates capital allocation decisions, and undermines confidence in sustainable profitability across multiple quarters.

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 Limited primarily makes money by earning fees and commissions for providing financial-intermediation and transaction-processing services to investors and corporate/issuer clients. Key revenue streams typically include: (1) Capital market/intermediary fees: brokerage and transaction-related income from facilitating securities trades (where applicable), plus account-related and service fees from depository participant (DP) services (e.g., demat account maintenance and transaction charges such as securities transfers, pledges, or other depository services). (2) Issuer/corporate services income: fees from registrar and transfer agent (RTA) activities and related investor servicing for listed/unlisted issuers, which generally include per-transaction or contract-based servicing fees tied to maintaining shareholder/beneficial owner records and processing investor requests. (3) Other service/processing income: service charges for ancillary financial/transaction services offered through its platform and branch/network operations. Specific details on the exact mix of revenue streams, pricing, or significant partnerships are null.

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	3.46B	3.01B	2.36B	3.12B	1.28B	1.15B
Gross Profit	799.85M	930.42M	1.08B	619.74M	492.58M	274.44M
EBITDA	400.22M	451.60M	376.20M	-282.52M	184.80M	206.86M
Net Income	187.87M	198.57M	215.59M	-337.37M	23.57M	98.75M
Balance Sheet
Total Assets	4.45B	4.25B	5.31B	3.02B	2.61B	1.65B
Cash, Cash Equivalents and Short-Term Investments	682.44M	481.31M	699.07M	212.31M	291.36M	74.34M
Total Debt	213.81M	115.22M	436.36M	134.64M	208.71M	139.27M
Total Liabilities	1.15B	1.05B	2.34B	1.21B	1.17B	670.43M
Stockholders Equity	3.07B	2.97B	2.76B	1.61B	1.33B	943.17M
Cash Flow
Free Cash Flow	151.71M	50.79M	-708.66M	-764.82M	-263.45M	-68.58M
Operating Cash Flow	263.28M	335.66M	95.98M	-494.04M	15.96M	-23.02M
Investing Cash Flow	-191.32M	-365.37M	-798.50M	-189.95M	-272.50M	-26.50M
Financing Cash Flow	89.49M	-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: Neutral

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 8.36, above the 50-day MA of 9.23, and below the 200-day MA of 12.34, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 29.17 is Positive, neither overbought nor oversold. The STOCH value of 35.28 is Neutral, 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
AVG	61 Neutral	₹2.42B	12.39	―	0.66%	6.71%	-53.24%
ALANKIT	58 Neutral	₹2.06B	9.79	―	―	19.69%	-33.44%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MBLINFRA	54 Neutral	₹3.35B	-12.79	―	―	12.96%	-132.20%
LANCER	48 Neutral	₹2.26B	-10.73	―	―	-22.87%	-143.53%
IL&FSENGG	40 Underperform	₹3.21B	-224.29	―	―	-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.