Dolat Algotech (DOLATALGO)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me start with what I like. Dolat Algotech has a clean balance sheet — debt/equity of just 0.19 — and it earns a strong 35.48% ROCE, which tells me the broking business does not require much capital. ROE of 13.10% is respectable, and promoter holding of 74.49% aligns interests with minority shareholders. At ₹78.99, I am paying 10.83 times earnings and 1.51 times book value. That is not demanding for a profitable financial firm. Profit grew 4.04% even as sales fell 8.88%, so there is some cost discipline. But I must be honest: stockbroking is a cyclical, competitive business. In a bull market, volumes inflate profits; in a bear market, they can evaporate. The latest quarter shows sales of ₹108 Cr and net profit of ₹39 Cr, but one quarter proves nothing. The dividend yield is only 0.33%, so I am not being paid to wait. The Piotroski score of 6/9 suggests financial health is okay, but the PEG of 2.68, based on just 4% profit growth, is not attractive. FairStock calls it 33/100 and 'risky'; I understand why. This is not a wonderful business with a durable moat. It is a reasonably capitalized, decently managed cyclical trading operation. I would need a larger margin of safety than 10.8 times trailing earnings, because broking earnings are likely to mean-revert. For a patient investor, this belongs on a watchlist, not in the portfolio today.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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