Dolat Algotech Ltd, formerly 'Dolat Investments Limited,' was incorporated on February 24, 1987, and subsequently changed its name on August 12, 2021. The company operates as a technology-driven diversified quantitative trading firm, serving as a trading cum clearing member of NSE India, engaged in securities broking and securities trading.
Dolat's journey began with floor-based intuitive traders in the early 1980s and has since evolved into a sophisticated enterprise leveraging mathematical and statistical models to price and provide liquidity in various financial instruments. In 2007, the founders strategically transformed Dolat Algotech to focus on applying modeling, technology, and quantitative research to identify and capitalize on opportunities in financial markets. Today, the company utilizes techniques from machine learning, applied mathematics, modern statistics, distributed systems, and programmable hardware to execute trades across financial markets.
The company is a registered broker for the capital market and futures & options segments with NSE, specializing in proprietary trading of shares, securities, commodities, and other financial products. Dolat Algotech is recognized as one of the pioneers in algorithmic strategies and holds a considerable market volume within the derivatives segment at NSE.
Dolat's core operations involve providing liquidity, managing active risk, and conducting ultra-low latency trading through quantitative analysis. The company deploys various classes of strategies across different instruments, supported by one of the fastest, most versatile, and robust electronic trading systems. Its comprehensive technological approach ensures that the engineering team designs, codes, tests, and maintains high-performance, distributed systems crucial for trading on financial exchanges. Furthermore, the company integrates research, applied mathematics, and statistical techniques to uncover new opportunities and facilitate calculated decision-making.
As of June 30, 2025, Dolat Algotech Ltd boasts a market capitalization of ₹1,771 Crore, classifying it as a Small Cap company according to Value Research. The company's financial performance has demonstrated significant trends in recent periods.
- Full Year FY2025 Performance:
- Net profit surged by 36.94% to ₹215.44 crore in FY2025, up from ₹157.33 crore in FY2024.
- Sales increased by 40.64% to ₹529.90 crore in FY2025, compared to ₹376.77 crore in FY2024.
- Quarterly Performance Q4 FY2025:
- Net profit declined by 41.70% to ₹39.67 crore in Q4 FY2025, from ₹68.05 crore in Q4 FY2024.
- Sales decreased by 20.88% to ₹113.91 crore in Q4 FY2025, from ₹143.98 crore in Q4 FY2024.
- Strong Q1 FY2025 Performance:
- Net profit soared by 456.95% to ₹71.68 crore in Q1 FY2025, significantly up from ₹12.87 crore in Q1 FY2024.
- Sales increased by 220.58% to ₹151.73 crore in Q1 FY2025, compared to ₹47.33 crore in Q1 FY2024.
- Market Capitalization: ₹1,771 Crore (as of 30-Jun-2025)
- P/B Ratio: 1.77 times (as of 30-Jun-2025), representing a 41% discount to peers' median range of 2.99 times.
- P/E Ratio: 8.22 times (as of 30-Jun-2025), representing a 66% discount to peers' median range of 24.28 times.
- Dividend Yield: 0.25% (current).
- Annual Revenue Growth: 41% (outstanding).
- Pre-tax Margin: 57% (great).
- Return on Equity (ROE): 21% (exceptional).
The company has successfully reduced its debt and is currently almost debt-free, which significantly strengthens its financial position. However, investors should note the presence of contingent liabilities amounting to ₹1,160 Crore, which is an important consideration.
- Past 6 Months: Dolat Algotech share price decreased by 20.05%.
- Past 1 Year: Share price decreased by 24.47%.
- 52-Week Range: Low of ₹68, High of ₹186.5.
- Past 3 Years: The company has delivered a return of 13.37% and its share price moved up by 47.07% on BSE.
- Promoter Holding: 74.49% (as of Mar 2025), which has remained stable from Jun 2024.
- Chairman: Harendra D Shah.
- Managing Director: Pankaj D Shah.
- Subsidiary: Dolat Tradecorp, a partnership firm incorporated in FY2019-20, engaged in trading shares and securities.
Dolat Algotech operates within the highly specialized and competitive algorithmic trading sector, where technological superiority, continuous research, and robust risk management capabilities are paramount for success. The company's technical infrastructure and skilled software engineers are key drivers of its growth and competitive advantage. The strong promoter holding signals confidence in the business model, while its debt-free status provides substantial financial flexibility.
The company's strategic evolution from traditional trading to sophisticated technology-driven quantitative strategies positions it favorably in the dynamic financial markets. However, potential investors should carefully evaluate the inherent volatility associated with trading businesses and the significant contingent liabilities when making investment decisions.
