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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Softtech Enginee

Onward Technolog

Xchanging Sol.

Ksolves India

Mindteck (India)

Kellton Tech

Vakrangee

Allied Digital

Innovana Think.

Sahana Systems

Veefin Solutions

Why is Allied Digital Services Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 9.72% of over the last 5 years

Negative results in Mar 26

PBT LESS OI(Q) At Rs -18.65 cr has Fallen at -549.9% (vs previous 4Q average)
PAT(Q) At Rs -3.40 cr has Fallen at -136.8% (vs previous 4Q average)
ROCE(HY) Lowest at 7.56%

With ROE of 6.7, it has a Expensive valuation with a 1.1 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 -29.58%, its profits have risen by 28.3% ; the PEG ratio of the company is 0.6

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 1.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.58% 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

-29.5%

-0.58

50.64%

Sensex

-5.6%

-0.42

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.02%

EBIT Growth (5y)

9.72%

EBIT to Interest (avg)

11.09

Debt to EBITDA (avg)

1.10

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.06

Tax Ratio

7.36%

Dividend Payout Ratio

30.41%

Pledged Shares

Institutional Holding

0.42%

ROCE (avg)

9.85%

ROE (avg)

6.99%

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

1.14

EV to EBIT

18.87

EV to EBITDA

12.18

EV to Capital Employed

1.15

EV to Sales

0.71

PEG Ratio

0.61

Dividend Yield

1.21%

ROCE (Latest)

6.07%

ROE (Latest)

6.72%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

9What is working for the Company

PAT(9M)

At Rs 26.77 cr has Grown at 23.38%

NET SALES(Latest six months)

At Rs 515.19 cr has Grown at 21.24%

INVENTORY TURNOVER RATIO(HY)

Highest at 20.22 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.91 times

-18What is not working for the Company

PBT LESS OI(Q)

At Rs -18.65 cr has Fallen at -549.9% (vs previous 4Q average

PAT(Q)

At Rs -3.40 cr has Fallen at -136.8% (vs previous 4Q average

ROCE(HY)

Lowest at 7.56%

DEBT-EQUITY RATIO(HY)

Highest at 0.22 times

INTEREST(Q)

Highest at Rs 3.45 cr

PBDIT(Q)

Lowest at Rs -10.11 cr.

Loading Valuation Snapshot...

Here's what is working for Allied Digital

Net Sales - Quarterly

Highest at Rs 267.77 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Highest at 20.22 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 6.91 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Allied Digital

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -18.65 cr has Fallen at -549.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 4.15 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -3.40 cr has Fallen at -136.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 9.25 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

Highest at Rs 3.45 cr

in the last five quarters and Increased by 10.58 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -10.11 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.22 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