Check Before You Invest : Allied Digital Services Ltd

Q: Which industry/sub-sector does Allied Digital Services Ltd belong to?

Allied Digital Services Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Allied Digital Services Ltd a good quality company?

Allied Digital Services Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Allied Digital Services Ltd undervalued or overvalued?

Allied Digital Services Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 15.85, Historic Median: 54.50. Price to Book, Current: 1.61, Historic Median: 1.52. Price to Sales, Current: 2.03, Historic Median: 3.26. EV to EBITDA, Current: 13.77, Historic Median: 23.84

Q: Is Allied Digital Services Ltd a good buy now?

Allied Digital Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Allied Digital Services Ltd?

Allied Digital Services Ltd revenue growth is 27.7% for FY-2025, which is below its 5-year CAGR of 31.31%, indicating slower growth.

Q: 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 below its 5-year median of 13.7%, indicating decreasing margins.

Q: 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 below its 5-year median of 14.99% indicating decreasing margins.

Q: Net Profit Margin of Allied Digital Services Ltd?

Allied Digital Services Ltd Net Profit Margin is 2.93% for FY-2025, is below its 5-year median of 4.64%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13, Historic Median: 13.7. Operating Profit Margin (%), Current: 6.49, Historic Median: 14.99. Net Profit Margin (%), Current: 2.93, Historic Median: 4.64

Q: Return on Asset of Allied Digital Services Ltd?

Allied Digital Services Ltd Return on Asset is 1.63%, which is in line with its 5-year historical median of 1.63%, indicating stable asset utilization efficiency.

Q: 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 above its 5-year historical median of 3.16%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Allied Digital Services Ltd

BSE: 532875 NSE: ADSL ISIN: INE102I01027

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Allied Digital Services Ltd belong to?

Allied Digital Services Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Allied Digital Services Ltd a good quality company?

Allied Digital Services Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Allied Digital Services Ltd undervalued or overvalued?

Allied Digital Services Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	15.85	54.50
Price to Book	1.61	1.52
Price to Sales	2.03	3.26
EV to EBITDA	13.77	23.84

Q.4 Is Allied Digital Services Ltd a good buy now?

Allied Digital Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Allied Digital Services Ltd?

Allied Digital Services Ltd revenue growth is 27.7% for FY-2025, which is below its 5-year CAGR of 31.31%, indicating slower growth.

Q.2 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 below its 5-year median of 13.7%, indicating decreasing margins.

Q.3 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 below its 5-year median of 14.99% indicating decreasing margins.

Q.4 Net Profit Margin of Allied Digital Services Ltd?

Allied Digital Services Ltd Net Profit Margin is 2.93% for FY-2025, is below its 5-year median of 4.64%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13	13.7
Operating Profit Margin (%)	6.49	14.99
Net Profit Margin (%)	2.93	4.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Allied Digital Services Ltd?

Allied Digital Services Ltd Return on Asset is 1.63%, which is in line with its 5-year historical median of 1.63%, indicating stable asset utilization efficiency.

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 above its 5-year historical median of 3.16%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 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 5-year historical median of 2.01%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Allied Digital Services Ltd?

Allied Digital Services Ltd Cash conversion cycle is 60 days, below its 5-year historical median of 215 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.55	0.37
ROE (%)	2.3	2.01
ROCE (%)	6.83	3.16
Cash Conversion Cycle	60 days	215 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Allied Digital Services Ltd?

Allied Digital Services Ltd Debt-to-Equity ratio is 0.12, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 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.

Ownership & governance

D: Promoter shareholding and pledge status of Allied Digital Services Ltd?

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)

E: How does Allied Digital Services Ltd performance compare with that of its Peers?

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 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	27.7	3.2
Gross Profit Growth (%)	23.1	18.4
Operating Profit Growth (%)	-62.8	18.8
Net Profit Growth (%)	-50	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.55	0.46
ROE (%)	2.3	4.22
ROCE (%)	6.83	6.49
Cash Conversion Cycle (days)	59.96	36

Valuation & price assessment

Q.1 Stock return of Allied Digital Services Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12.5%	20.1%	17.9%	-20.7%

Q.2 Valuation ratios of Allied Digital Services Ltd vs historical?

The current P/E ratio of 15.85 is lower than its historical median of 54.50, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.85	54.50	47.38
Price to Book	1.61	1.52	2.64
Price to Sales	2.03	3.26	4.79
EV to EBITDA	13.77	23.84	16.75

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Check Before You Invest : Allied Digital Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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