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Alankit Ltd

NSE: ALANKIT BSE: 531082

8.64

(4.00%)

Sat, 30 May 2026, 05:37 pm

Alankit Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (5.9x coverage).
  • Alankit's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividend payments have increased, but Alankit only paid a dividend in the past 5 years.
  • Alankit has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Alankit's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Alankit is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alankit is profitable, therefore cash runway is not a concern.
  • Alankit is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 6.6x debt.
  • Alankit's cash and other short term assets cover its long term commitments.
  • Alankit earns more interest than it pays, coverage of interest payments is not a concern.
  • Alankit's level of debt (15.8%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

  • Operating cash flow is negative therefore debt is not well covered.

management

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Pros

  • The tenure for the Alankit board of directors is about average.
  • Ankit's remuneration is lower than average for companies of similar size in India.
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Cons

  • Ankit's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • The average tenure for the Alankit management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Alankit is not covered by any analysts.
    • Alankit has significant price volatility in the past 3 months.

    past

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    Pros

    • Alankit has delivered over 20% year on year earnings growth in the past 5 years.
    • Alankit has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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    Cons

    • Alankit's 1-year earnings growth is less than its 5-year average (4% vs 30.7%)
    • Alankit used its assets less efficiently than the IN IT industry average last year based on Return on Assets.
    • Alankit's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Alankit's earnings growth has not exceeded the IN IT industry average in the past year (4% vs 6%).

    value

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    Pros

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      Cons

      • Alankit's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Alankit's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Alankit is overvalued based on assets compared to the IN IT industry average.
      • Alankit is overvalued based on earnings compared to the IN IT industry average.
      • Alankit is overvalued based on earnings compared to the India market.
      • ALANKIT underperformed the IT industry which returned -10.1% over the past year.
      • ALANKIT underperformed the Market in India which returned -14.5% over the past year.
      • NSEI:ALANKIT is flat (0%) underperforming the IT industry which returned 8.5% over the past month.
      • NSEI:ALANKIT is flat (0%) underperforming the market in India which returned 8% over the past month.