Dolat Algotech Limited (DOLATALGO) AI Stock Analysis

• Market Cap: ₹15.07B
• Dividend Yield: 0.4%
• Average Volume (3M): 20.56K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.69
• Revenue Growth: -25.49%
• EPS Growth: -51.44%
• Country: IN
• Employees: 125
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 0.26
• 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): 2.93
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹95.00 ▲(10.97% Upside)

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

Business Model Strength

A diversified revenue model with multiple income streams enhances stability and reduces dependency on any single source, supporting long-term growth.

Competitive Advantages

Offering specialized and customizable solutions provides a competitive edge, fostering client loyalty and enabling the company to capture niche markets.

Profitability

Strong profitability metrics suggest efficient operations and the ability to sustain competitive pricing while maintaining healthy margins.

Negative Factors

Revenue Decline

A significant decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future financial performance.

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which could limit the company's ability to invest in growth opportunities or manage debt effectively.

Operational Efficiency

A decline in EBIT margin suggests rising operational costs or inefficiencies, which could erode profitability and hinder long-term competitiveness.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 85.61
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 85.61 is above the 20-day moving average (MA) of 80.04, above the 50-day MA of 78.37, and below the 200-day MA of 86.29, indicating a neutral trend. The MACD of 2.99 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹15.07B	12.52	―	0.40%	-25.49%	-51.44%
SASKEN	63 Neutral	₹22.73B	57.81	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NIITLTD	56 Neutral	₹12.80B	39.42	―	1.07%	12.25%	-28.69%
IKIO	54 Neutral	₹14.23B	73.51	―	0.55%	11.73%	-64.05%
RAMCOSYS	52 Neutral	₹21.93B	253.64	―	―	20.41%	―

Dolat Algotech Limited Corporate Events

Dolat Algotech Updates Shareholding Compliance for Q3 2025

Dolat Algotech Limited has submitted a revised certificate from its Registrar and Share Transfer Agent, Purva Sharegistry (India) Private Limited, for the quarter ending September 30, 2025, in compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The revision was necessary because physical shares transferred to the Investor Education and Protection Fund (IEPF) were not included in the earlier certificate. This update ensures compliance with regulatory requirements and maintains the integrity of the company’s shareholding records.

Dolat Algotech Certifies Compliance with Commercial Paper Listing

Dolat Algotech Limited has issued a certificate for the quarter ending September 30, 2025, confirming its adherence to the listing conditions for commercial papers. The company has utilized the proceeds from these commercial papers to meet its ongoing funding requirements, including working capital and market obligations.