Allied Digital Services Ltd, incorporated in 1984, is a global IT consulting and services provider that operates as a systems integrator. The company offers infrastructure solutions and services to clients across 70 countries. It designs, develops, deploys, and delivers end-to-end IT infrastructure services and digital solutions in India, the United States, and internationally. Allied Digital provides information technology and consultancy services, including infrastructure management, end-user IT support, IT asset lifecycle management, and enterprise applications.
Allied Digital Services Limited is a dynamic IT company specializing in digital transformation architecture, global managed IT services, and master systems integration. It provides a wide array of IT and consultancy services. A pioneer in executing smart city projects, Allied Digital Services is recognized as a Master System Integrator. The company offers comprehensive, vendor-agnostic cybersecurity solutions and enables the creation of Security Operations Centers (SOCs). It is also certified to offer cloud solutions to customers.
Allied Digital Services Ltd has a market capitalization of ₹1,006 crores as of recent trading data. The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with the symbol ADSL on NSE and scrip number 532875 on BSE.
The company reports an operating revenue of ₹779.48 crores on a trailing 12-month basis. The stock has seen a 52-week high of ₹319.90 and has demonstrated significant growth momentum over extended periods.
- Q3 FY25: Consolidated net profit jumped 51.4% to ₹17.71 crore compared to ₹11.70 crore in Q3 FY24. Net sales increased 28.9% year-over-year to ₹220.57 crore. The earnings per share (EPS) stood at 2.9.
- Q1 FY25: Consolidated net profit rose 21.19% to ₹10.41 crore on a 5.99% increase in sales to ₹179.13 crore. The company has shown a consistent growth trajectory with a robust 29% year-over-year revenue growth in Q3 FY2025, driven by strong performance in both the U.S. and Indian markets, particularly in sectors like enterprise and government.
Key financial indicators as of recent reports include:
- Revenue: ₹807 crores
- Profit: ₹32.1 crores
- Stock P/E: 31.3
- Book Value: ₹107
- ROCE: 9.73%
- ROE: 5.44%
- Dividend Yield: 0.84%
The promoters of Allied Digital Services Ltd are Nitin Dhanji Shah and Tejal Prakash Shah, who collectively own 49.5% of the total equity. Nitin Shah serves as the chairman of the company. Current promoter holding stands at 51.2%, indicating strong management control and commitment to the business.
The company has been actively expanding its presence in the smart city and digital transformation space. Allied Digital Services has been awarded a project by Maharashtra State Electricity Transmission Company (MSETCL) to upgrade and modernize its network through the implementation of Software-Defined Wide Area Network (SD-WAN). MSETCL, a wholly-owned corporate entity under the Maharashtra Government, plays a pivotal role in transmitting electricity and manages a substantial portion of Maharashtra's electric power transmission network. As part of this initiative, Allied Digital will deploy a cutting-edge SD-WAN solution across MSETCL's offices.
The company has also secured a six-year contract in collaboration with the Pune Police and the Government of Maharashtra, Home Department. This contract involves the deployment of over 4,000 artificial intelligence (AI) enabled cameras across 1,400-plus strategic locations throughout Pune city. This contract further solidifies Allied Digital's position as a pioneer and leader in delivering transformative solutions for Smart & Safe Cities Management to over 14 cities.
While managing challenges such as rising operational costs and wage hikes, the company remains committed to enhancing EBITDA margins through strategic investments in talent and technology, including AI integration to improve efficiency and service delivery. The asset-based revenue model supports stable income and scalability, positioning the company well to capitalize on increasing technology spending and smart city initiatives. Additionally, significant cash reserves provide the flexibility for strategic acquisitions, ensuring sustained growth amid a competitive landscape. The outlook remains positive, bolstered by a healthy demand pipeline and ongoing market revival.
Allied Digital Services Ltd continues to strengthen its position as a comprehensive IT services provider with significant exposure to high-growth areas like smart cities, cybersecurity, and digital transformation, making it an interesting proposition for investors looking at the Indian IT services sector.
