Dolat Algotech Limited (DOLATALGO) AI Stock Analysis

• Market Cap: ₹13.65B
• Dividend Yield: 0.4%
• Average Volume (3M): 20.56K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.53
• 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)

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

Proprietary quantitative trading model

Dolat Algotech’s core business is in-house, systematic algorithmic trading supported by proprietary research and automated execution. That tech-driven model is scalable, repeatable and capital-efficient, providing a structural competitive edge if models sustain alpha over time.

Robust profit margins

Reported strong gross and net margins indicate effective cost control and profitable trading operations. Durable margins allow reinvestment in research and infrastructure and help absorb market volatility, supporting long-term earnings stability if trading performance remains consistent.

Healthy equity and strong ROE

A favorable debt-to-equity mix and high ROE point to efficient capital use and manageable leverage. This balance-sheet strength provides financial flexibility to fund technology, scale strategies and withstand drawdowns without forcing asset sales or dilutive financing.

Negative Factors

Volatile and negative operating cash flow

Large swings and a recent negative operating cash flow, plus negative free cash flow, indicate liquidity strain and inconsistent cash generation from trading. Reliance on external financing undermines operational independence and can limit sustainable investment in research and infrastructure.

Recent sharp revenue and EPS declines

Material drops in revenue and EPS suggest recent strategy underperformance or adverse market conditions reducing alpha. If persistent, these declines erode retained earnings, constrain R&D spending, and weaken the firm’s ability to scale profitable strategies over the medium term.

Operational efficiency and liquidity weaknesses

Noted degradation in operational efficiency and a falling EBIT margin, combined with a slight rise in debt reliance, signal structural pressures on profitability. Over months, efficiency gaps can raise costs, reduce net alpha retention, and increase sensitivity to market stress events.

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: Negative
• Last Price: 91.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 82.57, above the 50-day MA of 82.54, and above the 200-day MA of 86.45, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 26.01 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	₹13.65B	11.20	―	0.40%	-25.49%	-51.44%
SASKEN	64 Neutral	₹19.11B	48.59	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IKIO	54 Neutral	₹11.99B	58.00	―	0.55%	11.73%	-64.05%
NIITLTD	54 Neutral	₹10.85B	47.31	―	1.07%	12.25%	-28.69%
RAMCOSYS	52 Neutral	₹21.20B	96.07	―	―	20.41%	―