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Allied Digital Services Ltd. Stock Analysis

Small Cap
Evaluated by 650 users | BSE: 532875 | NSE: ADSL |
IT - Software
Allied Digital Services (ADSL), incorporated on February 1995, is a leading IT infrastructure management and technical support services outsourcing company. The company provides technical support services to business-to-business, business-to-consumer, e-commerce and corporate internal...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.4%1.23%0.18%2.28%1.08%2.19%1.74%1.97%2.57%1.99%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 52240623614912610378.174.275.294.2
Y-o-Y Gr. Rt.--22.2%-41.8%-36.8%-16%-17.6%-24.5%-5%1.4%25.2%
Adjusted EPS (Rs.) 12.2-0.4-1.741.68-0.530.37-0.181.441.431.23
Y-o-Y Gr. Rt.--103.3%NANA-131.6%NA-148.7%NA-0.7%-14%
Book Value per Share (Rs.) 147.27148.83146.62149.4145.7388.4388.1488.9690.8893.88
Adjusted Net Profit 56.9-1.9-8.17.8-2.51.8-0.97.27.26.2
Net Op. Cash Flow (Rs. Cr.) 13.846.7297.2-0.618.322.911.821.89.7
Debt to Cash Flow from Ops 7.012.143.2814-198.9164.296.792.965.52
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Allied Digital Services Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -17.3%-5.6%6.4%25.2%
Adjusted EPS -22.5%NANA-14%
Book Value per Share -4.9-8.42.13.3
Share Price -2% -3.8% 2.2% 57.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.61-0.27-1.181.14-0.360.33-0.21.61.561.32
Operating Profit Margin (%) 16.067.2712.049.6825.1328.6437.7642.4235.3124
Net Profit Margin (%) 10.89-0.46-3.415.19-1.951.77-1.139.759.536.53
Debt to Equity 0.140.150.140.150.180.250.220.180.140.11
Working Capital Days 2343395759151,1781,1411,0721,2081,2281,024
Cash Conversion Cycle 163227376615818789662625628549
Entity Percentage Holding
Promoters 49.30%
Institutions 0.04%
Non-Institutions 50.65%
Pledged *10.2510.2410.2410.245.485.485.484.064.054.04
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Allied Digital Serv.'s performance infers:

Allied Digital Serv. earnings have grown by 0%, whereas share price has depreciated -3.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Allied Digital Serv. share prices over the last 10 years. Here is what we found out:

Allied Digital Serv. share price has depreciated -20.6% annually over the past ten years.

Allied Digital Services (ADSL), incorporated on February 1995, is a leading IT infrastructure management and technical support services outsourcing company. The company provides technical support services to business-to-business, business-to-consumer, e-commerce and corporate internal environments.

In April 1995, company took over the business of Digital Data Services, a partnership firm. Allied Digital has over 1000 committed professionals, operating across 72 locations within

Allied Digital Services (ADSL), incorporated on February 1995, is a leading IT infrastructure management and technical support services outsourcing company. The company provides technical support services to business-to-business, business-to-consumer, e-commerce and corporate internal environments.

In April 1995, company took over the business of Digital Data Services, a partnership firm. Allied Digital has over 1000 committed professionals, operating across 72 locations within India.

ADSL serves global, large and medium enterprises and service providers to trim down their total cost of ownership using a combination of onsite and remote services. It offers a range of solutions that include technology infrastructure management, simple-to-complex technical support solutions, security lifecycle services and professional services for design and deployment of technology infrastructure. 

Business areas

The company offers services such as networking and communications, information security solutions, integrated solutions, software solutions, managed services, information technology solutions, technical BPO and gateways.

ADSL caters to various industries such as manufacturing, banking / finance / insurance, services, energy power, government, retail, telecom and ITES / software development / BPO.

Milestones

1995- Allied Digital Services -- a private limited company was incorporated. The company took over the business of Digital Data Services, a partnership firm. The company had tie up with Compaq Computers and Creative Multimedia in multimedia and graphics segments.

1996- ADSL became an authorised distributors of Dell. It received a contract for maintenance of Air India's Travel Agent Network for five consecutive years. The company opened 18 countrywide offices to cater to the Air India project

1997- The company tied up with Microsoft for its entire product suite and became the member of Microsoft- Assurance Circle OEM Builder Partner and Solution Provider.

1999- ADSL tied up with Hewlett Packard for its entire product suite. The company received ISO 9001:2000 certification for quality management.

2000- The company implemented the Solaries support project for Psi-Net to support its Infrastructure at UK. This became the first outsourced overseas contract, which was executed on behalf of NIIT as their exclusive support partners.

2001- The company tied up with IBM for its entire product suite.

2002-The company tied up with Media Gate for its unified messaging solutions. ADSL implemented entire the BSNL UMS project for GSM and Tata TeleServices for CDMA projects countrywide.

2003- In order to cater to the Middle East market, ADSL formed Alam Digital Yemen. It partnered with IBM Global and HP services for catering outsourcing projects.

2004- The company implemented countrywide contract from GAIL for complete end to end server farm solution. 

2005 ADSL formed new subsidiary company under the name iWeb Technology Solutions.

2006- The company tied up with Ericom, an Israel-based software company for on-demand access solutions.

2007- The company formed a strategic tie up with Echelon to foray into Intelligent Building Management and Energy Management Solutions.

Awards

Allied Digital was awarded ‘Best under a Billion Dollar Company’ by Forbes Magazine.

Allied Digital bagged the Dataquest Excellence Award 2008 for ‘Fastest Growing Systems Integrator’

New Developments

Allied Digital Services acquired 100% stake in Bangalore-based SAP consulting and support services provider ‘En Pointe Technologies India’. This acquisition will boost company’s remote infrastructure management and application support services portfolio.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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