Alldigi Tech (ALLDIGI)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

Strengths

• High return on equity of 28.99% and ROCE of 31.36% indicate strong capital efficiency.
• Low debt-to-equity of 0.33 and a Piotroski F-Score of 7/9 point to sound financial health.
• Dividend yield of 7.29% with promoter holding of 73.39% suggests shareholder-friendly and aligned management.
• Profit growth of 19.28% has outpaced sales growth of 9.48%, and the PEG ratio of 1.15 is reasonable.

Concerns

• P/B of 5.70 against book value of ₹146.23 leaves little margin of safety if returns normalize.
• Sales growth of only 9.48% reflects modest top-line momentum in a competitive BPO/KPO industry.
• High dividend payout may indicate limited high-return reinvestment opportunities for future growth.
• FairStock Score of 46/100 is mixed, and the stock is about 20% below its 52-week high of ₹1,040.

AI Analysis

Looking at Alldigi Tech, I see a business that earns a return on equity of nearly 29% with a return on capital employed above 31%. That is the first sign of a decent franchise. Debt is moderate at 0.33 times equity, and the Piotroski F-score of 7 out of 9 suggests the financial health is sound. Promoters holding 73.39% is a good alignment with minority shareholders. But as Graham taught, no matter how wonderful the business, we must not overpay. The price of ₹833.90 values the company at 16.48 times earnings and 5.70 times book value. If the returns stay high, a premium is acceptable; if they decay, the book value of ₹146.23 provides little cushion. The latest quarter showed sales of ₹153 Cr and net profit of ₹21 Cr, a 13.7% margin, which is healthy. Profit growth of 19.28% is outpacing sales growth of 9.48%, giving a PEG ratio of around 1.15. That is reasonable, but I must ask whether such operating leverage is durable in a BPO/KPO industry where bargaining power often sits with clients. The 7.29% dividend yield is attractive on the surface, yet it also makes me wonder whether the company has enough high-return reinvestment opportunities. A true compounder would retain and deploy capital at high rates, not hand out most of it. The stock trades nearly 20% below its 52-week high of ₹1,040, but that is not value by itself. FairStock Score of 46/100 tells me there are mixed signals. All in all, Alldigi is a stalwart-like small cap with good economics and a fair, not cheap, price. I would keep it on the watchlist and wait for a better margin of safety.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer