Alphalogic Techsys Receives 'Buy' Rating from MarketsMOJO for Strong Debt Management and Impressive Growth

Alphalogic Techsys, a smallcap IT software company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, healthy long-term growth, and consistent positive results.
One of the key factors contributing to the 'Buy' rating is Alphalogic Techsys' low Debt to EBITDA ratio of 0.65 times, indicating a strong ability to manage its debt. Additionally, the company has shown impressive growth with its Net Sales increasing at an annual rate of 84.20%. This is further supported by the company's positive results for the last 5 consecutive quarters, with its highest NET SALES(Q) at Rs 17.75 cr, PAT(9M) at Rs 3.44 Cr, and EPS(Q) at Rs 0.41.

From a technical standpoint, the stock is currently in a Bullish range and has generated 278.02% returns since 04-Apr-24. Multiple technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV are also showing a Bullish trend for the stock.

Alphalogic Techsys has also consistently outperformed BSE 500 in the last 3 annual periods, with a return of 1202.33% in the last 1 year alone. However, there are some risks associated with the stock. With a ROCE of 17.2, the company has a Very Expensive valuation with a 49.2 Enterprise value to Capital Employed. The stock is also trading at a premium compared to its average historical valuations. Additionally, while the stock has shown impressive returns, its profits have only risen by 21% in the past year, resulting in a high PEG ratio of 18.7.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In conclusion, Alphalogic Techsys shows strong potential for growth and has received a 'Buy' rating from MarketsMOJO. However, investors should also consider the risks associated with the stock before making any investment decisions.