01-01-1970 12:00 AM | Source: Sushil Finance Ltd
Buy Allied Digital Services Ltd. For Target Rs 175 - Sushil Finance
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Being consistently innovative and diversified to play a pivotal role going forward:

Undoubtedly, innovation plays a crucial role in Information Technology as it is the key enabler for every industry. In the recent past, the company did several transformation projects such as cloud migration, multi-cloud applications. The Management stated that they will continue to invest in areas such as Artificial Intelligence (AI), Robotic Process Automation, Cybersecurity, and certain startup incubation.  

A visionary leadership along with strong fundamentals and robust order book is a key to future growth: 

Mr. Nitin Shah, the founder and CMD is a visionary who has always been ahead of time and has been recognized amongst the most promising business leaders several times. In addition, over the years, the fundamentals of the company have substantially improved. The company’s turnover has grown at a CAGR of ~26% and ~18% over the last 3 and 5 years. The company has consistently paid dividend for last 3 years and as on March 31, 2022, stood net debt free with cash and cash equivalents of Rs.59 cr. Additionally, the company also boasts of an order book of over Rs.2,000 cr which gives good visibility for the next few years. 

Geographical expansion and tapping new opportunities through partnerships to drive top-line growth:

The Brazil, China and Japan offices were opened during the fiscal ended March 31, 2022. The company foresees new opportunities of growth in countries like Japan, Germany, UK, and Latin America and thus, Management stated that the company will soon invest resources into building new partnerships for business growth strategically in Europe as well as rest of the world. 

 

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