Check Before You Invest : Ace Alpha Tech Ltd

Q: Which industry/sub-sector does Ace Alpha Tech Ltd belong to?

Ace Alpha Tech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Ace Alpha Tech Ltd a good quality company?

Ace Alpha Tech Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ace Alpha Tech Ltd undervalued or overvalued?

Ace Alpha Tech Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 19.28, Historic Median: 15.84. Price to Book, Current: 3.37, Historic Median: 2.75. Price to Sales, Current: 13.9, Historic Median: 11.42. EV to EBITDA, Current: 14, Historic Median: 11.40

Q: Is Ace Alpha Tech Ltd a good buy now?

Ace Alpha Tech Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd revenue growth is 4.4% for FY-2025, which is below its 3-year CAGR of 264.76%, indicating slower growth.

Q: Gross Profit margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Gross profit margin which is the profit after deduction of direct costs, is 99% for FY-2025, which is in line with its 3-year median of 96%, indicating stable margins.

Q: Operating Profit Margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 88.21% for FY-2025, which is in line with its 3-year median of 89.89% indicating stable margins.

Q: Net Profit Margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Net Profit Margin is 72.08% for FY-2025, is in line with its 3-year median of 69.3%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 99, Historic Median: 96. Operating Profit Margin (%), Current: 88.21, Historic Median: 89.89. Net Profit Margin (%), Current: 72.08, Historic Median: 69.3

Q: Return on Asset of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Return on Asset is 39.77%, which is below its 3-year historical median of 73.23%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Return on capital employed is 54.34% for FY-2025, which is below its 3-year historical median of 110.45%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Ace Alpha Tech Ltd

BSE: 544431 NSE: ISIN: INE0S9X01011

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Ace Alpha Tech Ltd belong to?

Ace Alpha Tech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Ace Alpha Tech Ltd a good quality company?

Ace Alpha Tech Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ace Alpha Tech Ltd undervalued or overvalued?

Ace Alpha Tech Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	3-year Historic Median
Price to Earnings	19.28	15.84
Price to Book	3.37	2.75
Price to Sales	13.9	11.42
EV to EBITDA	14	11.40

Q.4 Is Ace Alpha Tech Ltd a good buy now?

Ace Alpha Tech Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd revenue growth is 4.4% for FY-2025, which is below its 3-year CAGR of 264.76%, indicating slower growth.

Q.2 Gross Profit margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Gross profit margin which is the profit after deduction of direct costs, is 99% for FY-2025, which is in line with its 3-year median of 96%, indicating stable margins.

Q.3 Operating Profit Margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 88.21% for FY-2025, which is in line with its 3-year median of 89.89% indicating stable margins.

Q.4 Net Profit Margin of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Net Profit Margin is 72.08% for FY-2025, is in line with its 3-year median of 69.3%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	99	96
Operating Profit Margin (%)	88.21	89.89
Net Profit Margin (%)	72.08	69.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Return on Asset is 39.77%, which is below its 3-year historical median of 73.23%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Return on capital employed is 54.34% for FY-2025, which is below its 3-year historical median of 110.45%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Return on equity is 41% for FY-2025, which is below its 3-year historical median of 80.89%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Cash conversion cycle is 57 days, below its 3-year historical median of 86 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	0.55	1.06
ROE (%)	41	80.89
ROCE (%)	54.34	110.45
Cash Conversion Cycle	57 days	86 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ace Alpha Tech Ltd?

Ace Alpha Tech Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ace Alpha Tech Ltd?

Q.1 Promoter shareholding and pledge status of Ace Alpha Tech Ltd?

Promoters hold 43.90% of the Ace Alpha Tech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ace Alpha Tech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ace Alpha Tech Ltd vs industry peers?

Ace Alpha Tech Ltd revenue CAGR is 264.76%, compared to the industry median CAGR of 9.94%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	4.4	9.9
Gross Profit Growth (%)	7.1	24.3
Operating Profit Growth (%)	-	23.4
Net Profit Growth (%)	10	22.9

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.55	0.53
ROE (%)	41	5.88
ROCE (%)	54.34	8.44
Cash Conversion Cycle (days)	57.35	40

Valuation & price assessment

Q.1 Stock return of Ace Alpha Tech Ltd over the last decade?

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Ace Alpha Tech Ltd vs historical?

The current P/E ratio of 19.28 is higher than its historical median of 15.84, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	19.28	15.84	46.11
Price to Book	3.37	2.75	2.78
Price to Sales	13.9	11.42	5.02
EV to EBITDA	14	11.40	17.30

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Check Before You Invest : Ace Alpha Tech Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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