Allied Digital Services Limited (ADSL) AI Stock Analysis

• Market Cap: ₹9.22B
• Dividend Yield: 0.92%
• Average Volume (3M): 34.66K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.55
• Revenue Growth: 21.48%
• EPS Growth: -26.29%
• Country: IN
• Employees: 3,000
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): 2.56
• Shares Outstanding: 56,427,803
• 10 Day Avg. Volume: 66,810
• 30 Day Avg. Volume: 34,659
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹189.00
• Price Target Upside: 16.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹189.00 ▲(16.88% Upside)

The overall stock score for Allied Digital Services Limited is driven primarily by its strong financial performance, characterized by robust revenue growth and effective cash flow management. However, technical indicators suggest bearish momentum, and the valuation appears high with a modest dividend yield. These factors collectively result in a moderate overall score.

Allied Digital Services Limited Business Overview & Revenue Model

Company Description

Allied Digital Services Limited (ADSL) is a global IT services and solutions company headquartered in India. The company operates primarily in the sectors of Information Technology and Consulting, offering a comprehensive suite of services including digital transformation, cybersecurity, infrastructure management, and cloud solutions. ADSL is known for its ability to provide end-to-end IT services to a wide range of industries, ensuring robust and scalable technology environments for its clients.

How the Company Makes Money

ADSL makes money through a diversified revenue model that includes managed IT services, technology consulting, and digital solutions. The company's key revenue streams are derived from long-term service contracts with global enterprises, government bodies, and small to medium-sized businesses. ADSL's managed services cover everything from network and infrastructure management to cybersecurity and cloud operations, providing reliable and recurring income. The digital transformation and consulting services offered by ADSL help clients optimize their IT strategies and operations, generating revenue through project-based engagements. Additionally, strategic partnerships with leading technology vendors and alliances bolster its service offerings and contribute to its financial performance.

Allied Digital Services Limited Financial Statement Overview

Summary

Allied Digital Services Limited shows strong revenue growth and effective cash flow management with a substantial increase in free cash flow. The balance sheet is stable with low leverage and a strong equity base. However, the net profit margin and return on equity could be improved.

Income Statement

Allied Digital Services Limited has demonstrated strong revenue growth with a notable increase of 17.48% in the latest year. The gross profit margin is consistent at approximately 18.5%, indicating stable profitability from its core operations. However, the net profit margin has decreased to 3.98%, which may be a concern despite the revenue growth. The EBIT margin has seen a decline, suggesting higher operating costs relative to revenue.

Balance Sheet

The company displays a solid financial position with a low debt-to-equity ratio of 0.16, indicating prudent leverage management. The equity ratio is robust at 65%, showcasing a strong asset base supported by equity. However, the return on equity stands at 5.34%, which could be improved to enhance shareholder value.

Cash Flow

There is a positive trend in cash flow, with free cash flow showing a substantial increase of 27.89%. The operating cash flow to net income ratio is 2.64, reflecting efficient cash generation from operations. The company's ability to generate free cash flow is strong, with a free cash flow to net income ratio of 2.56.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	7.79B	8.07B	6.87B	4.85B	6.60B	3.58B
Gross Profit	1.40B	1.49B	1.48B	1.32B	1.49B	938.70M
EBITDA	949.40M	986.90M	838.20M	955.10M	939.70M	478.30M
Net Income	538.30M	321.10M	458.50M	610.30M	69.20M	192.50M
Balance Sheet
Total Assets	0.00	9.25B	7.78B	6.93B	6.95B	6.41B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.16B	1.30B	637.00M	1.35B	529.90M
Total Debt	0.00	966.20M	748.00M	461.80M	351.50M	542.30M
Total Liabilities	-6.35B	2.79B	1.59B	1.37B	1.24B	1.56B
Stockholders Equity	6.35B	6.02B	5.79B	5.31B	5.36B	4.71B
Cash Flow
Free Cash Flow	0.00	822.50M	643.20M	81.10M	335.10M	326.00M
Operating Cash Flow	0.00	847.30M	676.10M	146.30M	470.20M	494.10M
Investing Cash Flow	0.00	-131.50M	-29.30M	-59.60M	-116.50M	-121.00M
Financing Cash Flow	0.00	-101.60M	-102.30M	-76.90M	-110.60M	-30.20M

Allied Digital Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADSL, the sentiment is Negative. The current price of 161.7 is below the 20-day moving average (MA) of 170.77, below the 50-day MA of 179.21, and below the 200-day MA of 215.67, indicating a bearish trend. The MACD of -4.40 indicates Negative momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ADSL.

Allied Digital Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFOBEAN	75 Outperform	₹14.10B	26.47		0.16%	9.57%	99.67%
ONWARDTEC	68 Neutral	₹7.10B	21.66		1.62%	7.76%	7.69%
ADSL	67 Neutral	₹9.22B	25.66		0.92%	21.48%	-26.29%
SILVERTUC	65 Neutral	₹9.25B	40.37		0.07%	23.77%	25.92%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%
SUBEXLTD	49 Neutral	₹7.15B	―		―	-7.78%	83.59%