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Check Before You Invest : Allied Digital Services Ltd

BSE: 532875 NSE: ADSL ISIN: INE102I01027
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Is Allied Digital Services Ltd a good quality company?
Allied Digital Services Ltd is a quality company, based on a 10 year financial track record .
Q.2 Is Allied Digital Services Ltd undervalued or overvalued?
Allied Digital Services Ltd appears Somewhat Undervalued , as its key valuation ratios are above with their past averages.
Q.3 Is Allied Digital Services Ltd a good buy now?
Allied Digital Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways . However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Gross Profit margin of Allied Digital Services Ltd?
Allied Digital Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025 , which is above its 5 year median of 0% , indicating increasing margins.
Q.2 Operating Profit Margin of Allied Digital Services Ltd?
Allied Digital Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.49% for FY-2025 , which is above its 5 year median of 0% indicating increasing margins.
Q.3 Net Profit Margin of Allied Digital Services Ltd?
Allied Digital Services Ltd Net Profit Margin is 2.93% for FY-2025 , is above with its 5 year median of 0%, indicating increasing margins.
Q.4 Return on Asset of Allied Digital Services Ltd?
Allied Digital Services Ltd Return on Asset is 1.63(x), which is above its 5 year historical median of 0(x), indicating improved asset utilization efficiency.
Q.5 Return on Equity (ROE) of Allied Digital Services Ltd?
Allied Digital Services Ltd Return on equity is 2.3% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.6 Return on capital employed (ROCE) of Allied Digital Services Ltd?
Allied Digital Services Ltd Return on capital employed is 6.83% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation .
Q.7 Cash conversion cycle of Allied Digital Services Ltd?
Allied Digital Services Ltd Cash conversion cycle is 60 , above its historical median of 0 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Q.8 Debt to Equity ratio of Allied Digital Services Ltd?
Allied Digital Services Ltd Debt-to-Equity ratio is 0.12 , which is above with the industry average of 0 , indicating higher debt levels in the industry.
Q.9 Debt to cash flow from operations of Allied Digital Services Ltd?
Allied Digital Services Ltd Debt to cash flow from operations is 6.05 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Allied Digital Services Ltd?
Promoters hold 51.07% of the Allied Digital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Allied Digital Services Ltd vs industry peers?
Allied Digital Services Ltd revenue CAGR is 31.31% , compared to the industry median CAGR of -6.59% , indicating faster growth and gaining its market share.

Valuation & price assessment

Q.1 Stock return of Allied Digital Services Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 10.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 10.2% 17.2% 9.8% -38.3%
Q.3 Valuation ratios of Allied Digital Services Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 13.01 17.51 22.96
Price to Book 1.32 0.26 2.61
Price to Sales 1.66 1.25 4.40
EV to EBITDA 11.49 6.34 17.20

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