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In this detailed #thread🧵 I'll analyse the business of ‘Allied Digital Services Ltd’ 🛜
each and every aspect of #AlliedDigitalServices will be cover in this thread.
#ADSL has Data Center Proxy 🛜+ Smart City 🏙️ + Cloud ☁️ Triggers

⭐️ABOUT THE COMPANY
Incorporated in 1984, Allied Digital Services
Ltd provides a wide range of information technology and consultancy services.
⭐️Business Overview:-
✅ADSL global IT Consulting and Services provider and Systems integrator offering infrastructure

solutions and services to clients across 70 countries.
✅It designs, develops, and deploys digital solutions and delivers end-to-end IT infrastructure services including, End user IT Support, IT asset life cycle, enterprise applications and integrated solutions

⭐️Services Offered:-
a) Cloud Computing Services:-
Cloud Management Services, Cloud Enablement Services, AWS Partner, Cloud Migration
b) Cybersecurity:-
AIM360 Degrees, CERT-IN Guidelines,
Threat Intelligence, Cloud Security, Management, Endpoint Security Management,

Anti-Fraud & Identity Management, Risk Management
c)Integrated Solutions:-
IoT, Cognitive Technologies, System Integration, Smart Cities, Safe Cities, Industrial IoT 4.0
d) Infrastructure Management:-
Enterprise Infrastructure Management, Work From Anywhere

e) Software Services:-
FinoAllied, Analytics to AI, DevOps, Enterprise Digitization, ADiTaaS (Now Digital Desk), SAP Support, Robotic Process, Automation
f) Workplace Services:-
Next Gen, Service Desk, Unified Endpoint Management, Workplace Services, Work place Modernisation

⭐️User Industries:-
Government, Healthcare, Retail, Automotive, BFSI
⭐️Overseas Presence:-
Company has established its branches and subsidiaries in various countries including Canada, UK, Belgium, Germany, Italy, Ireland, Spain, USA, Mexico, Brazil, China, Japan, Singapore,

⭐️Geographical Revenue Split - FY24:-
Overseas:- 68%, Domestic:- 32%
⭐️Segment Revenue - FY24:-
Solutions:- 17%, Services:- 83%
⭐️Revenue by Customer Profile:-
Government Customers:- 18%, Enterprise:- 82%

⭐️ Key Business Developments:-
✅Boston based Bank has chosen ADSL to provide Managed service for their Bank and customers filed services support.
✅Subsidiary of BP America, focused on oil and Natural gas exploration and production in Texas, has participated with ADSL.

✅Firm from Texas has selected ADSL to provide Managed services for 20,000 end users in the Asia pacific region across 17 countries.
✅Wind Turbine Manufacturer in Aurich, Germany partnered with ADSL to streamline LT operations in their Germany production facilities.

✅ADSL received Rs 190 Crores worth orders for the Taluja Smart Industrial city solutions Project in NAVI MUMBAI.
✅ADSL was selected as a master system Integrator for the integration of CCTV surveillance with Existing ITMS control Room for the Ayodhya Smart city project.

⭐️Concall Notes📝
Aug 2023(Highlights)
✅The company has an order book worth Rs 1700 Crore to be executed over next 3 to 4 Years.
✅Anticipate substantial growth in smart cities, cloud migration, cybersecurity services, end manufacturing solutions.

✅Optimistic about maintaining 14-15% Margins.
✅Targets top line of Rs 1000 Crore with 16-18% Margins in next 2-3 Years.
⭐️Concall Notes📝
Nov 2023(Highlights)
✅Order book at Rs 1600 Crore with execution period of around three years.
✅Expectation of improved performance

and improved margins in H2 & FY25.
✅Progress in smart city projects, with completed phases and new clients such as Lodha group, Tata Motors Group & Vedanta Group.
✅Confidence in achieving Revenue target of Rs 1000 Crore.

⭐️Concall Notes📝
Nov 2023
The company won contract for Ayodhya Smart city project.
⭐️Concall Notes📝
June 2024
✅Completed 12 smart city projects with 2 new wins.
✅Expecting an opportunity size of Rs 50,000 Crore in the smart city projects in next 5 years.

Fundamental Analysis♎⚖️
☑️Market Cap:- Rs 927 Cr(Smallcap)
☑️Stock PE:- 20.02Undervalued)
☑️Industry PE:- 34.6
☑️Book Value:- Rs 105
☑️Dividend Yield:- 0.72%
☑️ROCE:- 10.6%
☑️ROE:- 8.23%
☑️ROA:- 6.23%
☑️Face Value:- 5
☑️Intrinsic Value:- Rs 224
☑️Graham No:- Rs 140

☑️3 Years Sales Growth:- 24%
☑️3 Years Net Profits Growth:- 34%
☑️EPS:- 8.29
☑️Debt to Equity:- 0.10
☑️Debt:- Rs 60 Cr
☑️Reserves:- Rs 551 Cr
☑️Fixed Assets:- 279 Cr
☑️Piotroski Score:- 4
☑️PEG:- 0.56%
Last 3/5/10 Years Sales Growth & Profit Growth, CAGR, ROE, AR, CF👇

⭐️Chart Pattern Analysis 📈📉, Financial Results Analysis & Valuation Metrics ⚖️ as per growth trigger 💹
⭐️Technicals:-
20 MA:- 151.49
50 MA:- 145.19
200 MA:- 141.72
⭐️Fibonacci support
Support 1:- 162.04
Support 2:- 159.02
Support 3:- 154.13
⭐️ RSI
64.22

⭐️ Financial Results Analysis
☑️ADSL reported a good result in Q4FY24 Sales increased by 6.33% on YOY basis and Operating profits increased by 26.31%
☑️ADSL reported highest ever Sales in FY24 in its Business history

⭐️ Valuation Metrics ⚖️📝
☑️ADSL has a Vision to clock a Revenue of Rs 1000 Crores in the next 2-3 Years it means that ADSL Sales can grow at 13.33% CAGR pace(As per the Concall)
☑️The company has guided for 16-18% Margins(Previously between FY15 to FY19 ADSL has seen 15-21% Margins)

☑️If ADSL is able to achieve Rs 1000 Cr Sales with 14% Margins it Forward PE is coming to 9.65
☑️If ADSL is able to achieve Rs 1000 Cr Sales with 16% Margins it Forward PE is coming to 8.53
☑️If ADSL is able to achieve Rs 1000 Cr Sales with 18% Margins its Forward

PE is coming to 7.52
Conclusion:- If ADSL is able to achieve its top-line Sales target of Rs 1000+ Crores in next 2-3 Years with a margins of 14-18% we can possibly see a big Re-rating happening in this stock.

Disclaimer:- The above content is solely for the educational purposes. Do not take it as a Buy/Sell recom. I’ll not be responsible for the Profit/Loss made.

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