NSEI:ADSL

Stock Analysis Report

Allied Digital Services

Executive Summary

Allied Digital Services Limited designs, develops, deploys, and delivers IT Infrastructure services in India, the United States, Australia, Europe, the Middle East, and rest of Asia.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Allied Digital Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADSL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.2%

ADSL

-2.0%

IN IT

1.4%

IN Market


1 Year Return

-5.1%

ADSL

-21.7%

IN IT

-30.7%

IN Market

Return vs Industry: ADSL exceeded the Indian IT industry which returned -21.7% over the past year.

Return vs Market: ADSL exceeded the Indian Market which returned -30.7% over the past year.


Shareholder returns

ADSLIndustryMarket
7 Day16.2%-2.0%1.4%
30 Day-30.6%-18.4%-24.8%
90 Day-39.3%-22.2%-30.6%
1 Year-5.1%-5.1%-19.2%-21.7%-29.3%-30.7%
3 Year-57.4%-57.4%30.8%22.8%-18.1%-22.6%
5 Year-34.4%-34.4%20.9%9.3%-7.2%-12.2%

Price Volatility Vs. Market

How volatile is Allied Digital Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Allied Digital Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADSL (₹12.9) is trading below our estimate of fair value (₹125.72)

Significantly Below Fair Value: ADSL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADSL is good value based on its PE Ratio (2.7x) compared to the IT industry average (7.3x).

PE vs Market: ADSL is good value based on its PE Ratio (2.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ADSL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADSL is good value based on its PB Ratio (0.1x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is Allied Digital Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.2%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Allied Digital Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Allied Digital Services performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADSL has high quality earnings.

Growing Profit Margin: ADSL's current net profit margins (8.2%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: ADSL has become profitable over the past 5 years, growing earnings by 30.5% per year.

Accelerating Growth: ADSL's earnings growth over the past year (334.1%) exceeds its 5-year average (30.5% per year).

Earnings vs Industry: ADSL earnings growth over the past year (334.1%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: ADSL's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Allied Digital Services's financial position?


Financial Position Analysis

Short Term Liabilities: ADSL's short term assets (₹3.4B) exceed its short term liabilities (₹1.6B).

Long Term Liabilities: ADSL's short term assets (₹3.4B) exceed its long term liabilities (₹308.6M).


Debt to Equity History and Analysis

Debt Level: ADSL's debt to equity ratio (11.3%) is considered satisfactory.

Reducing Debt: ADSL's debt to equity ratio has reduced from 14.6% to 11.3% over the past 5 years.

Debt Coverage: ADSL's debt is well covered by operating cash flow (106.2%).

Interest Coverage: ADSL's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet

Inventory Level: ADSL has a low level of unsold assets or inventory.

Debt Coverage by Assets: ADSL's debt is covered by short term assets (assets are 6.6x debt).


Next Steps

Dividend

What is Allied Digital Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ADSL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ADSL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ADSL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADSL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ADSL is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADSL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Paresh Shah (52yo)

8.17s

Tenure

Mr. Paresh Bipinchandra Shah has been the Chief Executive Officer of Allied Digital Services Ltd. since February 7, 2012. Mr. Shah served as Vice President of Global Technologies at Allied Digital Services ...


CEO Compensation Analysis

Compensation vs Market: Paresh's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD48.21K).

Compensation vs Earnings: Paresh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nitin Shah
Founderno datano data29.45% 190.0m
Paresh Shah
Chief Executive Officer8.17yrsno datano data
Gopal Tiwari
Chief Financial Officerno data₹2.93mno data
Neha Bagla
Compliance Officer & Company Secretary2.92yrs₹735.00kno data
Shashank Pradhan
Vice President of Salesno datano datano data
Prakash Shah
Executive Director of Commercial & Whole-Time Director14yrsno data16.29% 105.1m
Nehal Shah
Executive Director1.75yrsno data0.081% 520.4k
Srinibash Sahoo
Chief Transformation Officerno datano datano data
Jawahar Ali
Chief Executive Officer of Integrated Solutions Groupno datano data0.030% 193.5k
Sunil Bhatt
Chief Technology Officer24.92yrs₹587.00kno data

8.2yrs

Average Tenure

53yo

Average Age

Experienced Management: ADSL's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nitin Shah
Founderno datano data29.45% 190.0m
Prakash Shah
Executive Director of Commercial & Whole-Time Director14yrsno data16.29% 105.1m
Nehal Shah
Executive Director1.75yrsno data0.081% 520.4k
Shrikant Parikh
Non-Executive Independent Director13.92yrs₹145.00kno data
Venugopal Iyengar
Non-Executive Independent Director11yrs₹120.00kno data
Rajesh Patel
Director of Digicomp Complete Solutions Ltd.no datano datano data
Shubhada Jahagirdar
Non-Executive Independent Director5.5yrs₹95.00kno data

11.0yrs

Average Tenure

62yo

Average Age

Experienced Board: ADSL's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Allied Digital Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allied Digital Services Limited
  • Ticker: ADSL
  • Exchange: NSEI
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹645.141m
  • Shares outstanding: 50.21m
  • Website: https://www.allieddigital.net

Location

  • Allied Digital Services Limited
  • Premises No.13A, Earnest House
  • 13th Floor, Block III
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532875BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2007
ADSLNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2007

Biography

Allied Digital Services Limited designs, develops, deploys, and delivers IT Infrastructure services in India, the United States, Australia, Europe, the Middle East, and rest of Asia. The company offers IT-as-a-service, such as IT transformation consulting, IT optimization and modernization, and disaster recovery hosting services, as well as datacenter hosting, migration, and management; and infrastructure services, such as infrastructure-as-a-service, infrastructure management, managed security, and professional services. It also provides end user IT support services, including service desk management, remote device management, virtual desktop infrastructure, enterprise mobility management, desk-side support, and professional services; and IT asset lifecycle services comprising deployment, maintenance, and disposal services, as well as install, move, add, and change services. In addition, the company offers enterprise applications consisting of custom application development, product engineering, ERP and CRM development and support, and business monitoring and management services; helpdesk/service desk management and work order management system solutions; and integrated solutions, such as security command and control center, video surveillance, access control, IoT, and RFID and smart card integrated solutions. Further, it provides perimeter intrusion detection, fire alarm, building management, public address, baggage scanning/explosive detection, and toll plaza and highway traffic management systems; and dispatch and depot services, including installation, datacenter smart hand, VOIP/PBX, datacenter transformation, maintenance and warranty, end user device, site survey, and satellite AV services. It has strategic alliances with Intel Corporation, LANDesk Software, Lenovo, and Amazon. Allied Digital Services Limited was incorporated in 1995 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 22:57
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.