Alldigi Tech Ltd Valuation Shifts to Very Attractive Amid Mixed Market Performance

Valuation Metrics Reflect Enhanced Appeal

Recent data reveals that Alldigi Tech’s P/E ratio stands at 16.20, a level that positions the stock favourably within its sector of Commercial Services & Supplies. This figure is notably lower than some peers such as IRIS Regtech Solutions, which trades at a P/E of 22.02 and is classified as very expensive. Meanwhile, Alldigi’s P/BV ratio of 4.99, while elevated compared to certain competitors, aligns with the company’s robust return on equity (ROE) of 29.21% and return on capital employed (ROCE) of 46.25%, underscoring operational efficiency and profitability.

These valuation improvements have been recognised by MarketsMOJO, which upgraded Alldigi Tech’s Mojo Grade from Sell to Hold on 16 February 2026, reflecting a more balanced risk-reward profile. The company’s Mojo Score currently stands at 51.0, indicating moderate confidence in its near-term prospects. The valuation grade itself has shifted from attractive to very attractive, signalling that the stock’s price now offers a compelling entry point for investors seeking exposure to the commercial services sector.

Comparative Analysis with Peers

When benchmarked against a selection of peers, Alldigi Tech’s valuation metrics present a nuanced picture. For instance, Maxgrow India and Riddhi Corporate are rated as very attractive with P/E ratios of 5.04 and 8.07 respectively, and EV/EBITDA multiples below 5.0, indicating deeper value plays. Conversely, companies like Xchanging Solutions and We Win Ltd, with P/E ratios of 12.96 and 9.83, are rated attractive but not as compelling as Alldigi Tech’s current standing.

Alldigi’s EV/EBITDA ratio of 7.69 is competitive within the peer group, suggesting a reasonable enterprise valuation relative to earnings before interest, tax, depreciation and amortisation. This metric is particularly important for investors assessing operational cash flow generation capacity. The company’s PEG ratio of 2.10, while higher than some peers, reflects moderate growth expectations priced into the stock.

Price Movement and Market Context

Despite the improved valuation, Alldigi Tech’s share price has experienced some pressure recently, closing at ₹811.00 on 17 February 2026, down 1.99% from the previous close of ₹827.45. The stock’s 52-week high remains at ₹1,090.15, with a low of ₹702.00, indicating a wide trading range and potential volatility. Intraday trading on the day saw a high of ₹824.85 and a low of ₹811.00, reflecting cautious investor sentiment amid broader market fluctuations.

Performance relative to the Sensex has been mixed over various time horizons. While the stock has outperformed the benchmark significantly over the long term—delivering a 10-year return of 622.82% compared to the Sensex’s 259.08%—shorter-term returns have lagged. For example, the stock declined 9.52% over the past week versus a 0.94% drop in the Sensex, and is down 15.08% over the last year while the Sensex gained 9.66%. This divergence highlights the importance of valuation reassessment in the context of recent price corrections.

Financial Strength and Dividend Appeal

Alldigi Tech’s financial metrics further bolster its valuation case. The company’s dividend yield of 7.40% is attractive in the current low-interest-rate environment, providing a steady income stream for investors. Coupled with a strong ROCE of 46.25%, the firm demonstrates efficient capital utilisation, which is a key consideration for long-term shareholders.

Enterprise value multiples also support the valuation upgrade. The EV to EBIT ratio of 11.96 and EV to capital employed ratio of 6.13 indicate that the market is valuing the company’s earnings and capital base at reasonable levels, especially when compared to riskier or loss-making peers such as Visesh Infotec and Informed Technologies, which carry negative or volatile multiples.

Sector and Market Positioning

Operating within the Commercial Services & Supplies sector, Alldigi Tech benefits from steady demand and a diversified client base. Its valuation improvement coincides with a broader sectoral trend where investors are increasingly favouring companies with strong fundamentals and sustainable profitability. The company’s market capitalisation grade of 4 suggests a mid-cap status, offering a blend of growth potential and relative stability.

While the stock’s recent price correction may have caused some investor hesitation, the underlying fundamentals and valuation metrics point towards a favourable risk-reward profile. The upgrade in valuation grade to very attractive reflects this recalibration, signalling that the stock’s current price better compensates investors for the risks involved.

Outlook and Investor Considerations

Investors analysing Alldigi Tech should weigh the improved valuation against recent price volatility and sector dynamics. The company’s strong profitability metrics and dividend yield provide a cushion against market fluctuations, while the upgraded valuation grade suggests that the stock is now priced more attractively relative to its earnings and book value.

However, the PEG ratio above 2.0 indicates that growth expectations are moderately priced in, and investors should monitor earnings momentum closely. The stock’s underperformance relative to the Sensex over the past year may reflect broader market rotations or sector-specific challenges, which could persist in the near term.

Overall, Alldigi Tech’s valuation repositioning offers a compelling entry point for investors with a medium to long-term horizon who seek exposure to a fundamentally sound commercial services company with a history of strong returns and dividend payouts.

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