Synopsis
Allied Digital Services Limited stock is in radar after receiving a Rs.420 crore from a dominant European Multinational Pharmaceutical company.
The shares of this IT firm engaged in the business of offering IT services and digital solutions is in radar after acquiring a new international order of Rs.420 crore. With a market capitalization is of Rs.999 crore, the shares of Allied Digital Services Ltd closed at Rs.174.35, up by 0.03% from the previous day closing price of 173.21 per share touched an intraday high of Rs.184.30.
Work Order
Allied Digital Services Limited has received a five year agreement for a consideration of Rs. 420 Crores for expanding digital workspaces for 1,20,000 working employees across Americas, Europe, and the Middle East, by a leading European multinational pharmaceutical company. Through the expansion project, it is an great opportunity for the company to strengthen its global presence.
Management Commentary
Allied Digital Services Ltd’s CMD Mr. Nitin D Shah, commented as follows “We are pleased to announce this landmark contract with a leading multinational pharmaceutical company.
This prestigious engagement, valued at Rs.420+ Cr over five years, focuses on transforming the digital workplace for over 120,000 employees across 66 countries. It validates our global capabilities and highlights our expertise in delivering large-scale, complex and transformative projects, thereby solidifying our position as a trusted provider of enterprise-grade solutions.”
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About the Company & Others
Allied Digital Services Limited established in 1984, is engaged in offering technology consulting and support to government organizations and businesses.The company also provides services such as cloud computing, cybersecurity, integrated solutions, infrastructure management, software and workplace services. Along with the services, the company works with retail, education, healthcare and banking clients in both domestic,and international markets.
Allied Digital Services Limited has a global presence across 70+ countries with 3000+ employees, 20 offices and 228 customers worldwide, which also include some Fortune 100 customers.
Coming to the revenue breakup , it generates 75 percent of its revenue from services and 25 percent from solutions and most of it is delivered to global customers who contribute 63 percent of its revenue and the rest 37 percent is from domestic clients.
Revenue from operation of the company grew from Rs. 179 crore in Q1FY25 to Rs. 219 in Q1FY26 crore,with the increase in net profit from 10 crore to 14 crore. It has delivered a ROE and ROCE of Rs.5.44 percent and 9.73 percent. Followingly it commands a PE 27.3 which is lower than industry PE ratio of 32.94, indicating share is undervalued with its peer companies.
Written by:- Jhanavi Sivakumar
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