Allied Digital Services Ltd (ADSL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Silver Touch

Xchanging Sol.

Innovana Think.

Dynacons Sys.

Kellton Tech

NINtec Systems

Allied Digital

Vakrangee

Excelsoft Tech.

Veefin Solutions

Sahana Systems

Why is Allied Digital Services Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 10.73% of over the last 5 years

Flat results in Sep 25

PAT(9M) At Rs 22.25 cr has Grown at -38.40%
DEBT-EQUITY RATIO(HY) Highest at 0.19 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.84 times

With ROE of 6.6, it has a Expensive valuation with a 1.5 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.97%, its profits have fallen by -16.4%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.92% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -39.97% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Allied Digital for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Allied Digital

-40.3%

-0.82

48.67%

Sensex

4.84%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.51%

EBIT Growth (5y)

10.73%

EBIT to Interest (avg)

11.37

Debt to EBITDA (avg)

0.98

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.00

Tax Ratio

39.01%

Dividend Payout Ratio

18.09%

Pledged Shares

Institutional Holding

1.17%

ROCE (avg)

9.73%

ROE (avg)

7.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.50

EV to EBIT

32.91

EV to EBITDA

15.23

EV to Capital Employed

1.56

EV to Sales

0.97

PEG Ratio

Dividend Yield

0.92%

ROCE (Latest)

4.75%

ROE (Latest)

6.56%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

PBT LESS OI(Q)

At Rs 13.60 cr has Grown at 274.4% (vs previous 4Q average

PAT(Latest six months)

At Rs 29.86 cr has Grown at 35.67%

NET SALES(Q)

Highest at Rs 233.70 cr

-8What is not working for the Company

PAT(9M)

At Rs 22.25 cr has Grown at -38.40%

DEBT-EQUITY RATIO(HY)

Highest at 0.19 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.84 times

INTEREST(Q)

Highest at Rs 2.91 cr

NON-OPERATING INCOME(Q)

is 33.85 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Allied Digital

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 13.60 cr has Grown at 274.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3.63 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 29.86 cr has Grown at 35.67%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 233.70 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Allied Digital

Interest - Quarterly

At Rs 2.91 cr has Grown at 26.52%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 2.91 cr

in the last five quarters and Increased by 26.52 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 33.85 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 0.19 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 3.84 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio