Allied Digital Services Limited (ADSL) AI Stock Analysis

• Market Cap: ₹9.94B
• Dividend Yield: 0.93%
• Average Volume (3M): 103.11K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.49
• Revenue Growth: 20.23%
• EPS Growth: -17.78%
• Country: IN
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.73
• Shares Outstanding: 56,427,803
• 10 Day Avg. Volume: 43,847
• 30 Day Avg. Volume: 103,113
• PEG Ratio: -1.08
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 14.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹173.00 ▲(6.79% Upside)

The overall stock score is driven primarily by strong financial performance, with significant revenue growth and cash flow management. However, technical analysis indicates bearish momentum, which weighs down the score. Valuation is moderate, with a fair P/E ratio but low dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth highlights the company's ability to expand its market presence and effectively meet customer demand, supporting long-term business stability.

Cash Flow Management

Strong cash flow management ensures the company can reinvest in growth opportunities, maintain operations, and provide returns to shareholders, enhancing financial resilience.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates potential challenges in cost management or pricing power, which could impact long-term profitability and shareholder returns.

Return on Equity

Low return on equity suggests inefficiencies in generating profits from shareholders' investments, potentially limiting the company's attractiveness to investors.

EBIT Margin Decline

A declining EBIT margin indicates rising operational costs, which could pressure profitability and hinder the company's ability to invest in growth initiatives.

Allied Digital Services Limited Business Overview & Revenue Model

Company Description

Allied Digital Services Limited (ADSL) is a leading provider of digital transformation and IT services, focusing on delivering innovative solutions across various sectors, including healthcare, finance, education, and manufacturing. The company specializes in providing managed IT services, cloud computing solutions, cybersecurity, and enterprise application services, enabling organizations to enhance their operational efficiency and improve customer engagement through technology.

How the Company Makes Money

ADSL generates revenue through a diverse range of services, primarily from managed IT services, which involve ongoing support and maintenance for clients' IT infrastructure. The company also earns income from cloud computing solutions, where clients pay for data storage, processing power, and application hosting on a subscription basis. Cybersecurity services contribute significantly to revenue, as businesses increasingly invest in protecting their digital assets. Additionally, ADSL engages in project-based work, offering enterprise application development and implementation services, which provide one-time payments and ongoing support contracts. Strategic partnerships with major technology providers also bolster ADSL's offerings, allowing for enhanced service delivery and expanded market reach, further contributing to its revenue streams.

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. However, there is room to enhance profitability and return on equity.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.47B	8.07B	6.87B	6.60B	4.85B	3.58B
Gross Profit	1.65B	1.49B	1.48B	1.49B	1.32B	938.70M
EBITDA	1.00B	986.90M	838.20M	939.70M	955.10M	478.30M
Net Income	361.40M	321.10M	458.50M	69.20M	610.30M	192.50M
Balance Sheet
Total Assets	0.00	9.25B	7.78B	6.95B	6.93B	6.41B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.16B	1.38B	1.35B	637.00M	581.70M
Total Debt	0.00	966.20M	748.00M	549.70M	461.80M	550.00M
Total Liabilities	-6.46B	2.79B	1.59B	1.24B	1.37B	1.56B
Stockholders Equity	6.46B	6.02B	5.79B	5.36B	5.31B	4.71B
Cash Flow
Free Cash Flow	0.00	822.50M	643.20M	335.10M	81.10M	326.00M
Operating Cash Flow	0.00	847.30M	676.10M	470.20M	146.30M	494.10M
Investing Cash Flow	0.00	-131.50M	-29.30M	-116.50M	-59.60M	-121.00M
Financing Cash Flow	0.00	-101.60M	-102.30M	-70.40M	-76.90M	-30.20M

Allied Digital Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.00
• 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 162 is below the 20-day moving average (MA) of 167.62, below the 50-day MA of 179.03, and below the 200-day MA of 184.26, indicating a bearish trend. The MACD of -3.88 indicates Negative momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 39.43 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	74 Outperform	₹14.20B	22.45	―	0.17%	14.57%	80.44%
SILVERTUC	66 Neutral	₹9.63B	42.05	―	0.07%	16.93%	36.77%
ADSL	66 Neutral	₹9.94B	27.36	―	0.93%	20.23%	-17.78%
ONWARDTEC	62 Neutral	₹6.51B	15.79	―	1.78%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SUBEXLTD	50 Neutral	₹7.26B	-96.42	―	―	-9.53%	96.99%

Allied Digital Services Limited Corporate Events

Allied Digital Services Concludes 31st AGM with Key Discussions

Allied Digital Services Limited held its 31st Annual General Meeting on September 10, 2025, at the Indian Merchant Chambers in Mumbai, with virtual participation also facilitated. The meeting, led by Chairman and Managing Director Mr. Nitin Shah, saw attendance from key company directors and executives, as well as representatives from auditing firms. A total of 212 members participated, with discussions focusing on compliance with SEBI regulations.