Check Before You Invest : Alankit Ltd

Snapshot

Q.1 Which industry/sub-sector does Alankit Ltd belong to?

Alankit Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Alankit Ltd a good quality company?

Alankit Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Alankit Ltd undervalued or overvalued?

Alankit Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Alankit Ltd a good buy now?

Alankit Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Alankit Ltd?

Alankit Ltd revenue growth is -16.4% for FY-2025, which is below its 5-year CAGR of -3.97%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Alankit Ltd?

Alankit Ltd Return on capital employed is 5.7% for FY-2025, which is below its 5-year historical median of 8.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Alankit Ltd?

Alankit Ltd Return on Asset is 3.1%, which is below its 5-year historical median of 4.8%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Alankit Ltd?

Alankit Ltd Return on equity is 3.7% for FY-2025, which is below its 5-year historical median of 6.2%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Alankit Ltd?

Alankit Ltd Cash conversion cycle is 53 days, below its 5-year historical median of 63 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.28	0.5
ROE	3.7	6.2
ROCE	5.7	8.1
Cash Conversion Cycle	53 days	63 days

Q.6 Gross Profit margin of Alankit Ltd?

Alankit Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.8% for FY-2025, which is above its 5-year median of 20.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Alankit Ltd?

Alankit Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.3% for FY-2025, which is above its 5-year median of 20.33% indicating increasing margins.

Q.8 Net Profit Margin of Alankit Ltd?

Alankit Ltd Net Profit Margin is 10.99% for FY-2025, is above with its 5-year median of 9.75%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	28.8	20.7
Operating Profit Margin	24.3	20.33
Net Profit Margin	10.99	9.75

Q.9 Debt to Equity ratio of Alankit Ltd?

Alankit Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Alankit Ltd?

Alankit Ltd Debt to cash flow from operations is 0.26, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Alankit Ltd?

Promoters hold 54.15% of the Alankit Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Alankit Ltd vs industry peers?

Alankit Ltd revenue CAGR is -3.97%, compared to the industry median CAGR of 18.37%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-16.4	18.4
Gross Profit Growth	29.2	24.6
Operating Profit Growth	4	28.8
Net Profit Growth	-20	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.28	0.26
ROE	3.7	8.05
ROCE	5.7	10.2
Cash Conversion Cycle (days)	53.29	-107

Valuation & price assessment

Q.1 Stock return of Alankit Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -10.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-10.1%	-8.4%	3.1%	-34.9%

Q.3 Valuation ratios of Alankit Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	20.96	25.63	20.01
Price to Book	0.76	1.68	1.64
Price to Sales	2.99	2.62	5.20
EV to EBITDA	7.65	12.17	6.89

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