Allied Digital Services Limited (ADSL) AI Stock Analysis

• Market Cap: ₹9.45B
• Dividend Yield: 0.9%
• Average Volume (3M): 36.11K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.45
• Revenue Growth: 21.48%
• EPS Growth: -25.48%
• Country: IN
• Employees: 3,000
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 2.56
• Shares Outstanding: 56,427,803
• 10 Day Avg. Volume: 17,993
• 30 Day Avg. Volume: 36,109
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 9.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ₹189.00 ▲(9.47% 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. The balance sheet is stable with low leverage and a strong equity base, though there is room to enhance profitability and return on equity. The company should focus on improving net profit margins and sustaining operational efficiencies to further boost its financial health.

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	Dec 2025	Dec 2023	Dec 2022	Dec 2022	Dec 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: Neutral
• Last Price: 172.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADSL, the sentiment is Neutral. The current price of 172.65 is above the 20-day moving average (MA) of 162.50, above the 50-day MA of 171.31, and below the 200-day MA of 207.30, indicating a neutral trend. The MACD of -2.73 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹14.48B	27.84		0.16%	9.57%	99.67%
ONWARDTEC	71 Outperform	₹7.64B	23.30		1.51%	7.76%	7.69%
ADSL	67 Neutral	₹9.45B	26.81		0.90%	21.48%	-25.48%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
INNOVANA	―	₹11.06B	23.50		―	―	―
SILVERTUC	60 Neutral	₹8.75B	38.20		0.07%	23.77%	25.92%
SUBEXLTD	45 Neutral	₹7.29B	―		―	-8.61%	95.89%