Dolat Algotech Limited (DOLATALGO) AI Stock Analysis

• Market Cap: ₹13.50B
• Dividend Yield: 0.4%
• Average Volume (3M): 20.56K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.56
• Revenue Growth: -25.49%
• EPS Growth: -51.44%
• Country: IN
• Employees: 125
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 2.21
• Shares Outstanding: 176,000,000
• 10 Day Avg. Volume: 15,269
• 30 Day Avg. Volume: 20,556
• PEG Ratio: 0.20
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 3.31
• P/FCF Ratio: -48.43
• 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: 72 Outperform
• Price Target: ₹85.00 ▼(-7.14% Downside)
• Action: Upgraded Date: 12/10/25
• Date: Action: Upgraded 12/10/25

Dolat Algotech Limited's stock score is primarily driven by its strong valuation, with an attractive P/E ratio and dividend yield. Financial performance is stable, though liquidity and operational efficiency need improvement. Technical indicators suggest caution due to overbought conditions and bearish momentum.

Positive Factors

Robust margins and profitability

Robust gross and net margins indicate the firm retains a meaningful share of trading gains after costs. For a proprietary algorithmic trader, durable margins reflect effective cost control, execution efficiency and profitable models, providing a cushion through varied market conditions and funding for R&D.

Healthy balance sheet and manageable leverage

A healthy equity base and moderate leverage give the firm financial flexibility to absorb trading drawdowns and fund technology or capacity expansion without destabilizing liquidity. Manageable debt reduces refinancing risk and supports long-term operational continuity.

Proprietary, technology-driven business model

Owning models, data and low-latency execution is a structural advantage: it supports repeatable alpha, scale benefits, and high switching costs. This vertically integrated setup sustains competitive differentiation and is resilient across market cycles if models and execution are maintained.

Negative Factors

Declining revenue and EPS growth

Material year-over-year declines in revenue and EPS signal weakening core trading performance or adverse market regimes. For a firm whose earnings stem from proprietary alpha, sustained negative growth may reflect model degradation, reduced opportunity set, or structural pressure on strategy returns.

Cash flow volatility and negative free cash flow

Volatile operating cash flows and persistently negative free cash flow reduce liquidity buffers and force reliance on financing. That undermines the firm's ability to self-fund tech investment, cover drawdowns, or scale strategies without raising external capital, increasing long-term financing risk.

Operational efficiency and liquidity concerns

A decline in EBIT margin and flagged efficiency issues indicate rising costs or deteriorating execution economics. For algorithmic trading, higher operating inefficiency erodes edge and can persistently compress net returns unless addressed, harming competitiveness and reinvestment capacity.

Dolat Algotech Limited Business Overview & Revenue Model

Company Description

Dolat Algotech Limited, together with its subsidiaries, trades in shares, securities, commodities, and other financial products through various trading platforms in India. It also invests in stocks, commodities, and derivatives. The company was formerly known as Dolat Investments Limited and changed its name to Dolat Algotech Limited in November 2021. Dolat Algotech Limited was incorporated in 1983 and is based in Mumbai, India.

How the Company Makes Money

Dolat Algotech Limited generates revenue through multiple channels, including subscription fees for its proprietary trading algorithms and software solutions, transaction fees from trades executed using its technology, and consulting services provided to institutional clients. The company also benefits from strategic partnerships with financial institutions and exchanges, which enhance its service offerings and market reach. Additionally, performance-based fees may be generated when clients achieve specific trading results using DOLATALGO's algorithms, incentivizing the company to continuously innovate and improve its products.

Dolat Algotech Limited Financial Statement Overview

Summary

Dolat Algotech Limited shows strong revenue growth and profitability, with effective cost management and leverage under control. However, challenges in cash flow management and recent operational efficiency concerns require attention. Overall, the company appears stable but must address liquidity and efficiency issues to sustain growth.

Income Statement

The company demonstrates strong revenue growth, with a significant increase in total revenue over the years. Gross profit margin and net profit margin are robust, indicating effective cost management. However, there was a decrease in EBIT margin from the previous year, which could signal challenges in operational efficiency.

Balance Sheet

The company maintains a healthy equity position, with a favorable debt-to-equity ratio indicating manageable leverage. Return on equity is strong, reflecting good profitability. However, the slight increase in debt levels over the years could pose a risk if not controlled.

Cash Flow

The company's cash flow is heavily influenced by significant fluctuations in operating cash flow, with a notable negative figure in the latest year. Despite this, the free cash flow remains negative, suggesting potential issues in liquidity management. Positive cash flow from financing activities suggests reliance on external funding.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.28B	4.69B	3.36B	2.45B	2.93B	2.65B
Gross Profit	2.82B	3.30B	2.55B	1.91B	2.55B	2.32B
EBITDA	2.86B	3.31B	2.37B	1.78B	2.48B	2.23B
Net Income	1.83B	2.15B	1.57B	1.16B	1.67B	1.47B
Balance Sheet
Total Assets	0.00	11.40B	9.36B	8.04B	7.65B	4.98B
Cash, Cash Equivalents and Short-Term Investments	0.00	343.13M	1.74B	538.38M	1.35B	409.09M
Total Debt	0.00	658.03M	840.98M	1.40B	1.75B	1.14B
Total Liabilities	-10.04B	1.36B	1.43B	1.65B	2.37B	1.34B
Stockholders Equity	10.04B	10.03B	7.92B	6.39B	5.28B	3.64B
Cash Flow
Free Cash Flow	0.00	-320.87M	-155.81M	778.57M	1.40B	1.88B
Operating Cash Flow	0.00	-285.87M	-120.85M	787.00M	1.41B	1.88B
Investing Cash Flow	0.00	-36.00M	332.70M	-1.18B	-965.16M	-3.63B
Financing Cash Flow	0.00	486.54M	-46.72M	-45.12M	-36.49M	-29.70M

Dolat Algotech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DOLATALGO, the sentiment is Negative. The current price of 91.54 is above the 20-day moving average (MA) of 76.91, above the 50-day MA of 82.18, and above the 200-day MA of 85.65, indicating a bearish trend. The MACD of -1.44 indicates Negative momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 56.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DOLATALGO.

Dolat Algotech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOLATALGO	72 Outperform	₹13.50B	10.21	―	0.40%	-25.49%	-51.44%
SASKEN	64 Neutral	₹17.08B	74.37	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IKIO	54 Neutral	₹10.43B	38.21	―	0.55%	11.73%	-64.05%
NIITLTD	54 Neutral	₹9.02B	78.58	―	1.07%	12.25%	-28.69%
RAMCOSYS	53 Neutral	₹15.69B	163.07	―	―	20.41%	―