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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Allied Digital Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:38 pm

Market Cap 1,434 Cr.
Current Price 257
High / Low320/116
Stock P/E30.0
Book Value 106
Dividend Yield0.58 %
ROCE10.5 %
ROE8.23 %
Face Value 5.00
PEG Ratio-0.80

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Allied Digital Services Ltd

Competitors of Allied Digital Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.898.5/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.8 Cr. 186245/11031.3 16.80.54 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 59.8 Cr. 17.427.0/16.2181 11.20.00 %%% 10.0
First Fintec Ltd 8.80 Cr. 8.4610.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average41,321.35 Cr716.0491.12122.740.66%18.02%18.80%6.94

All Competitor Stocks of Allied Digital Services Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales98113117156153167174166169170171177179
Expenses8795104129139142144148151150150152160
Operating Profit12181327142630191821212419
OPM %12%16%11%17%9%15%17%11%11%12%12%14%11%
Other Income12411132-4700101
Interest1011111111121
Depreciation5655444444445
Profit before tax636922102326-341216161914
Tax %28%10%22%24%30%23%27%11%31%26%27%25%26%
Net Profit53371771819-37911121410
EPS in Rs0.926.451.263.101.323.273.53-6.811.562.082.122.551.88

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales585417266234237215225240330358485660680
Expenses542371248200195174178201282313415572592
Operating Profit43461734424147394845708887
OPM %7%11%7%15%18%19%21%16%14%12%14%13%13%
Other Income16-2301152186426-41-45
Interest18151516191651074345
Depreciation20252628222123222222201717
Profit before tax213616519152424742621
Tax %52%158%-57%123%31%106%47%15%20%18%17%74%
Net Profit10-29-04-0101219196172
EPS in Rs2.03-1.102.000.000.83-0.071.992.463.833.8011.261.260.36
Dividend Payout %12%0%0%0%0%0%0%13%20%9%99%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152016-20172018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-120.00%550.00%-100.00%-100.00%20.00%58.33%0.00%221.05%-88.52%
Change in YoY Net Profit Growth (%)0.00%670.00%-650.00%0.00%120.00%38.33%-58.33%221.05%-309.58%

Allied Digital Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:23%
3 Years:24%
TTM:7%
Compounded Profit Growth
10 Years:17%
5 Years:36%
3 Years:34%
TTM:-2%
Stock Price CAGR
10 Years:29%
5 Years:63%
3 Years:32%
1 Year:112%
Return on Equity
10 Years:4%
5 Years:7%
3 Years:9%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:44 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital23232325252525252527272828
Reserves659655638417417399412431444504509551564
Borrowings110102136112935864545443516055
Other Liabilities74473984251138132113118119108140187
Total Liabilities866826836638786620633623641693695778834
Fixed Assets381349308287310293278273255250265279287
CWIP47383838000000000
Investments5558778889668
Other Assets433435486305468319347342378434424493538
Total Assets866826836638786620633623641693695778834

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3730232632193149154968
Cash from Investing Activity +-302018245-11-12-6-12-3
Cash from Financing Activity +-18-211-35-31-24-32-20-3-8-13-10
Net Cash Flow-1222-4-313-8-03412454

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow43.00-64.00-85.00-102.00-70.00-52.00-11.00-25.00-6.00-9.0027.0037.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2273644872495132442992241671508880
Inventory Days609310796110110936761503943
Days Payable21282311820019564113111673445
Cash Conversion Cycle2654305712274231593281771181339377
Working Capital Days287457573237230212311250215201133124
ROCE %3%3%2%4%4%5%4%6%5%9%13%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters49.98%53.21%53.21%53.21%52.95%52.82%52.63%52.57%52.39%52.26%52.19%52.09%
FIIs0.00%0.50%0.34%0.20%0.54%0.60%0.42%0.13%0.00%1.08%1.01%1.81%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%
Public50.01%46.29%46.45%46.59%46.50%46.57%46.94%47.30%47.61%46.67%46.80%46.10%
No. of Shareholders30,08734,68038,69836,89138,05137,83138,25638,41540,56243,13357,38556,212

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)8.291.2711.663.823.83
Diluted EPS (Rs.)8.071.2310.943.583.83
Cash EPS (Rs.)11.254.3515.008.048.25
Book Value[Excl.RevalReserv]/Share (Rs.)111.92104.18102.6595.5493.29
Book Value[Incl.RevalReserv]/Share (Rs.)111.92104.18102.6595.5493.29
Revenue From Operations / Share (Rs.)124.24120.3689.4270.6365.76
PBDIT / Share (Rs.)15.2917.1413.409.6110.61
PBIT / Share (Rs.)12.3314.049.665.366.18
PBT / Share (Rs.)11.3913.3113.564.634.79
Net Profit / Share (Rs.)8.291.2611.263.793.83
NP After MI And SOA / Share (Rs.)8.291.2611.263.793.83
PBDIT Margin (%)12.3014.2314.9813.6016.12
PBIT Margin (%)9.9211.6610.797.599.39
PBT Margin (%)9.1611.0515.166.557.28
Net Profit Margin (%)6.671.0412.585.365.82
NP After MI And SOA Margin (%)6.671.0412.595.375.82
Return on Networth / Equity (%)7.921.2911.484.084.21
Return on Capital Employeed (%)10.4213.138.895.276.19
Return On Assets (%)5.890.998.803.003.08
Long Term Debt / Equity (X)0.020.010.010.010.01
Total Debt / Equity (X)0.100.060.080.110.11
Asset Turnover Ratio (%)0.930.330.190.150.15
Current Ratio (X)3.603.533.752.752.66
Quick Ratio (X)3.223.133.392.472.38
Dividend Payout Ratio (NP) (%)3.00157.516.2213.040.00
Dividend Payout Ratio (CP) (%)2.2145.604.676.150.00
Earning Retention Ratio (%)97.00-57.5193.7886.960.00
Cash Earning Retention Ratio (%)97.7954.4095.3393.850.00
Interest Coverage Ratio (X)16.2323.3827.7113.207.62
Interest Coverage Ratio (Post Tax) (X)9.8014.3715.216.213.75
Enterprise Value (Cr.)731.30404.73627.92228.45103.51
EV / Net Operating Revenue (X)1.060.611.300.630.31
EV / EBITDA (X)8.654.318.654.691.94
MarketCap / Net Operating Revenue (X)1.120.631.280.610.19
Retention Ratios (%)96.99-57.5193.7786.950.00
Price / BV (X)1.330.771.170.460.13
Price / Net Operating Revenue (X)1.120.631.280.610.19
EarningsYield0.050.010.090.080.30

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Allied Digital Services Ltd as of November 25, 2024 is: 263.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 25, 2024, Allied Digital Services Ltd is Undervalued by 2.42% compared to the current share price 257.00

Intrinsic Value of Allied Digital Services Ltd as of November 25, 2024 is: 164.04

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, Allied Digital Services Ltd is Overvalued by 36.17% compared to the current share price 257.00

Last 5 Year EPS CAGR: -37.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (507.69 cr) compared to borrowings (76.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (379.38 cr) and profit (18.85 cr) over the years.
  1. The stock has a low average ROCE of 5.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 269.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 250.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Allied Digital Services Ltd:
    1. Net Profit Margin: 6.67%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.42% (Industry Average ROCE: 18.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.92% (Industry Average ROE: 18.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.8
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.22
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 30 (Industry average Stock P/E: 91.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.1
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Allied Digital Services Ltd. is a Public Limited Listed company incorporated on 10/02/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200MH1995PLC085488 and registration number is 085488. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 122.58 Cr. and Equity Capital is Rs. 27.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software808, 8th Floor, Plot No. 221/222, Mafatlal Centre, Vidhan Bhavan Marg, Mumbai Maharashtra 400021investors@allieddigital.net
https://www.allieddigital.net/in/
Management
NamePosition Held
Mr. Nitin D ShahChairman & Managing Director
Mrs. Tejal Prakash ShahExecutive Director
Mr. Sunil BhattExecutive Director
Mr. Nehal ShahExecutive Director
Mr. Shakti LeekhaIndependent Director
Mr. Milind KamatIndependent Director
Mrs. Swanubhuti JainIndependent Director
Mr. Anup MahapatraIndependent Director

FAQ

What is the latest intrinsic value of Allied Digital Services Ltd?

The latest intrinsic value of Allied Digital Services Ltd as on 25 November 2024 is ₹263.23, which is 2.42% higher than the current market price of ₹257.00.

What is the Market Cap of Allied Digital Services Ltd?

The Market Cap of Allied Digital Services Ltd is 1,434 Cr..

What is the current Stock Price of Allied Digital Services Ltd as on 25 November 2024?

The current stock price of Allied Digital Services Ltd as on 25 November 2024 is 257.

What is the High / Low of Allied Digital Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Allied Digital Services Ltd stocks is 320/116.

What is the Stock P/E of Allied Digital Services Ltd?

The Stock P/E of Allied Digital Services Ltd is 30.0.

What is the Book Value of Allied Digital Services Ltd?

The Book Value of Allied Digital Services Ltd is 106.

What is the Dividend Yield of Allied Digital Services Ltd?

The Dividend Yield of Allied Digital Services Ltd is 0.58 %.

What is the ROCE of Allied Digital Services Ltd?

The ROCE of Allied Digital Services Ltd is 10.5 %.

What is the ROE of Allied Digital Services Ltd?

The ROE of Allied Digital Services Ltd is 8.23 %.

What is the Face Value of Allied Digital Services Ltd?

The Face Value of Allied Digital Services Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Allied Digital Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE