Alphalogic Techsys Ltd (BSE Small cap)

Market Cap: ₹1,200 Cr.

Alphalogic Techsys Ltd (Bse Small cap)is an Indian IT consulting company. it was founded in 2008. The company provides a range of related services like Business intelligence and analytics, web and app development, UI/UX design, DevOps consulting, Industrial storage solutions design and manufacturing and some other related services.  

Business Model

Alphalogic Techsys operates on a simple services business model just like any other IT company. However, the company uses some new age and advanced technologies like Ruby on Rails, Java, Swift and Objective-C, AngularJS and a like. 

Reputed Client Base

This Bse Small cap company has a major client base which includes Mahindra, Swiggy, Bajaj Finserv, Bridgestone, Payback, etc. Moreover, it caters to tech-related industries like SaaS, E-commerce Fintech, Healthtech and alike.

Subsidiary Acquisition

Alphalogic Industries Limited is a subsidiary of Alphalogic Techsys Ltd and is involved in the design, production, distribution, and implementation of Industrial Racks and Storage Solutions.

How Is The Management of Alphalogic Techsys?

Mr. Anshu Goel, Founder and MD

Mr. Anshu Goel is the Founder, Managing Director, and CFO of the company, the annual report claims that he has over 18 years of experience. 

Mrs. Neha Anshu Goel is the Executive Director of the company. she has an MBA degree and 12 years of experience. She leads the marketing and human resources functions of

the company.

One of the interesting things is that Dr. Amar Raykantiwar, the Chairman is an Independent Director, which means he does not interfere with the company’s operations or have any direct conflicts when making decisions for the company. 

Independent directors bring their expertise and experience to the board while making impartial decisions in the company’s favour.

Financial Analysis Of Alphalogic Techsys

CAPEX and Business Expansion in Bio-Ethanol

Alphalogic Techsys is looking to expand and diversify its business activities. It has been granted a Term Loan of ₹136 Crores for the establishment of a 150 KLPD Ethanol Distillery Project.  Moreover, a 3.3 MW Captive Power Generation Plant in Maharashtra.

The company is making significant sales growth year after year. When the consolidated and standalone financial statement was seen individually, a huge gap was seen in the revenue which states that the subsidiary is contributing heavily in the revenue. Is it a bad thing? Not necessarily.

The debtor days of the company is also close to the industry median of 55 days, which means it takes around 2 months for the credit buyers to make the full payment. The return on equity however is lower.

Cash Problem

The balance sheet of the company looks healthy overall except for the declining cash and equivalents which may cause concern for the company. 

Financial Forecasting of Alphalogic Techsys

Something unexpected is Happening in the Indian Tech Sector?

In this realm of technology, this sector is expected to grow at a rapid rate. However, a major shift is going on in the IT industry. 

In a report by Times of India it was claimed that in the financial year 2024, the year-on-year growth was just 3.8% when compared to 8.1% in FY23. The companies that get major revenue share from outside India are witnessing a slowdown

A Major Shift

A Major Change is going on with the top tech giants. According to a report by Times Of India companies like HCL, Wipro, TCS and alike have restructured their business over the last year. Infosys and HCL Tech are doing AI-focused restructuring while TCS is reorganising multiple groups. 

According to Nasscom, the expected jobs of 60,000 that the tech industry is creating this year is far less than last year’s number of 2.7 lakh. 

Disclaimer

The information presented here is for educational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.

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