Allied Digital Services Limited (ADSL.BO) Stock Analysis & Winston Score

Allied Digital Services Limited is an Indian technology services company that helps businesses set up and manage their IT infrastructure. Its core services include IT support, network management, cybersecurity, cloud solutions, and managed services. The company mainly serves large enterprises, government agencies, and banks across India, making it part of the fast-growing Indian IT services industry.

Allied Digital earns money by charging clients fees for ongoing managed services contracts, project-based IT deployments, and support agreements. It operates primarily in India, with some international presence, and its market cap of roughly $6.5 billion reflects its position as a mid-sized player in a crowded field. The company's thin operating margin of about 3.7% shows how competitive the IT services space is, with larger rivals like Wipro and HCL constantly competing for the same contracts. The key growth driver is India's expanding demand for digital infrastructure and government-led technology initiatives, though margin pressure from competition remains the main ongoing risk.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+31.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+53.1% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

55.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$2.3B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Allied Digital Services Limited grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

16.5%

Thin — 16.5% gross margin

Operating Margin

-5.7%

Losing money on operations — -5.7%

ROCE

-2.1%

Weak — -2.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+19.9%

Fast-growing sales (+19.9% YoY)

EPS YoY

+27.2%

Earnings growing fast (+27.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

-84%

Weak — only -84% of profit becomes cash

FCF Margin

-4.3%

Burning cash (-4.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.20

Conservative — low debt load (0.20)

Interest Cover

3.08x

Tight — interest eats into profit (3.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

17.1x

no trend

Fair value — P/E 17.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+9.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.1 → 7.3)

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Dividends

Dividend Yield

1.31%

no trend

Small dividend — 1.31% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+90.9%

no trend

Dividend growing fast (90.9% YoY)

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