Allied Digital Services Limited (ADSL) AI Stock Analysis

• Market Cap: ₹6.36B
• Dividend Yield: 0.96%
• Average Volume (3M): 103.11K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.70
• Revenue Growth: 20.23%
• EPS Growth: -17.78%
• Country: IN
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.18
• Shares Outstanding: 56,514,130
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.3
• Revenue Forecast (FY): ₹11.62B

• Rating: 72 Outperform
• Price Target: ₹126.00 ▼(-18.89% Downside)
• Action: Upgraded Date: 04/09/26
• Date: Action: Upgraded 04/09/26

The score is primarily supported by strong financial performance—healthy revenue growth, robust free cash flow generation, and low leverage. This is offset by weaker technical signals (negative MACD and price below longer-term averages) and only moderate valuation support (P/E ~17 and a modest dividend yield).

Positive Factors

Revenue Growth

Sustained ~17% top-line growth indicates durable demand for ADSL’s IT services and successful client engagement. Over the next 2–6 months continued revenue expansion supports scale benefits, contract renewals and reinvestment capacity, underpinning longer-term service foothold.

Negative Factors

Compressed Net Margins

A sub-4% net margin and falling EBIT margin point to margin pressure despite revenue growth. If operating cost inflation or pricing pressure persists, profitability recovery may be slow; this constrains retained earnings and the ability to sustainably improve ROE over months ahead.

Allied Digital Services Limited Business Overview & Revenue Model

Company Description

Allied Digital Services Limited designs, develops, deploys, and delivers end-to-end IT infrastructure services and digital solutions in India and internationally. The company provides information technology and consultancy services, such as infras...

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Allied Digital Services Limited designs, develops, deploys, and delivers end-to-end IT infrastructure services and digital solutions in India and internationally. The company provides information technology and consultancy services, such as infras...

How the Company Makes Money

ADSL primarily makes money by delivering IT services and solutions to clients under commercial contracts. Key revenue streams typically include: (1) Managed services/outsourcing fees, where ADSL operates and supports a customer’s IT environment (e...

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ADSL primarily makes money by delivering IT services and solutions to clients under commercial contracts. Key revenue streams typically include: (1) Managed services/outsourcing fees, where ADSL operates and supports a customer’s IT environment (e...

Allied Digital Services Limited Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.78B	8.07B	6.87B	6.60B	4.85B	3.58B
Gross Profit	1.66B	1.49B	1.48B	1.49B	1.32B	938.70M
EBITDA	1.05B	986.90M	838.20M	939.70M	955.10M	478.30M
Net Income	399.60M	321.10M	458.50M	69.20M	610.30M	192.50M
Balance Sheet
Total Assets	9.88B	9.25B	7.78B	6.95B	6.93B	6.41B
Cash, Cash Equivalents and Short-Term Investments	1.80B	2.16B	1.38B	1.35B	637.00M	581.70M
Total Debt	1.17B	966.20M	748.00M	549.70M	461.80M	550.00M
Total Liabilities	3.29B	2.79B	1.59B	1.24B	1.37B	1.56B
Stockholders Equity	6.09B	6.02B	5.79B	5.36B	5.31B	4.71B
Cash Flow
Free Cash Flow	-420.20M	822.50M	643.20M	335.10M	81.10M	326.00M
Operating Cash Flow	-324.20M	847.30M	676.10M	470.20M	146.30M	494.10M
Investing Cash Flow	-29.60M	-131.50M	-29.30M	-116.50M	-59.60M	-121.00M
Financing Cash Flow	94.40M	-101.60M	-102.30M	-70.40M	-76.90M	-30.20M

Allied Digital Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 155.35
• 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 Negative. The current price of 155.35 is above the 20-day moving average (MA) of 100.69, above the 50-day MA of 113.64, and above the 200-day MA of 154.90, indicating a neutral trend. The MACD of -3.10 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 94.42 is Negative, 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
ADSL	72 Outperform	₹6.36B	17.41	―	0.96%	20.23%	-17.78%
INNOVANA	68 Neutral	₹7.77B	22.14	―	―	25.98%	18.29%
INFOBEAN	67 Neutral	₹15.27B	25.81	―	0.13%	14.57%	80.44%
ONWARDTEC	62 Neutral	₹5.57B	15.89	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SILVERTUC	58 Neutral	₹16.17B	63.12	―	0.06%	16.93%	36.77%
SUBEXLTD	46 Neutral	₹4.87B	56.55	―	―	-9.53%	96.99%

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