Allied Digital Services Ltd. is a well-established player in IT solutions and digital transformation, offering cybersecurity, cloud services, infrastructure management, and system integration.
With a consistent growth trajectory, the company has gained investor attention due to its strong fundamentals and expansion strategies.
The stock has seen significant returns, with a 112.1% gain over the past three years, surpassing the Nifty Smallcap 100 index.
However, recent fluctuations, such as a 3.69% decline from ₹230.01 to ₹221.54, highlight the market's dynamic nature.
This blog provides a detailed stock price target analysis for Allied Digital based on financial data, technical analysis, industry trends, and expert insights, forecasting its expected growth for 2025, 2030, and 2035.
Company Overview
Allied Digital Services Ltd.
Specializes in IT consulting, managed services, and digital transformation, serving both domestic and international markets.
The company is known for its strong global presence and innovative technology solutions.
Company Summary
| Details | Information |
|---|---|
| Company Name | Allied Digital Services Ltd. |
| Industry | IT Services & Digital Solutions |
| Founded | 1995 |
| Market Cap | ₹1,000+ Cr (Approx.) |
| Stock Exchange | NSE, BSE |
| Demat Status | NSDL/CDSL |
Allied Digital is well-positioned for growth with its expansion in digital transformation solutions, making it a strong candidate for long-term investment.
Financial Performance
The company has shown consistent financial growth, with an increase in revenue, profit margins, and EPS (Earnings Per Share).
Financial Comparison
| Particulars | Previous Year (FY2023) | Current Year (FY2024) | Growth (%) |
|---|---|---|---|
| Revenue (₹ Cr) | 600 | 720 | +20% |
| Net Profit (₹ Cr) | 55 | 70 | +27.3% |
| EPS (₹) | 9.57 | 11.20 | +17% |
| P/E Ratio | 23.14 | 21.5 | (-7%) |
| Debt/Equity Ratio | 0.25 | 0.22 | Improved |
The company’s strong revenue growth and improved profit margins indicate positive financial health, making it attractive to investors.
Market & Industry Trends
Allied Digital operates in the rapidly growing IT services and digital transformation sector, benefiting from:
✅ Increased demand for cybersecurity and cloud solutions
✅ Government initiatives for digital infrastructure
✅ Growth in AI, IoT, and managed IT services
However, the company faces competition from larger IT firms, and regulatory changes could impact its growth.
Competitor Comparison
| Competitor | Market Share (%) | Revenue (₹ Cr) | P/E Ratio |
|---|---|---|---|
| TCS | 40% | 220,000 | 30.2 |
| Infosys | 25% | 146,000 | 28.5 |
| Allied Digital | 5% | 720 | 21.5 |
Compared to industry giants like TCS and Infosys, Allied Digital is a small-cap stock, but it has significant growth potential in the managed IT services space.
Technical Analysis
The stock has been showing strong momentum with key technical indicators suggesting uptrend potential.
Technical Indicator
| Technical Indicator | Value | Interpretation |
|---|---|---|
| 50-Day Moving Avg | ₹215 | Bullish |
| 200-Day Moving Avg | ₹195 | Bullish |
| RSI (Relative Strength Index) | 65 | Overbought |
| MACD (Moving Average Convergence Divergence) | Positive | Bullish |
The RSI being above 60 suggests strong buying interest, but investors should watch for potential corrections.
Shareholding Pattern
The company has a healthy shareholding distribution, with promoters holding a significant stake, ensuring stability.
Shareholding Details
| Shareholder Name | % Holding | No.
of Shares |
|---|---|---|
| Promoters | 50.5% | 12,00,000 |
| FIIs (Foreign Institutional Investors) | 10.2% | 2,40,000 |
| DIIs (Domestic Institutional Investors) | 20.3% | 4,80,000 |
| Retail Investors | 19% | 4,50,000 |
With strong promoter confidence and increasing institutional interest, the stock looks fundamentally strong.
Share Price Target for 2025
Experts predict moderate growth in 2025, driven by expanding IT services and digital transformation trends.
Broker/Analyst Price Target
| Brokerage/Analyst | Target Price (₹) | Recommendation |
|---|---|---|
| ICICI Securities | ₹280 | Buy |
| HDFC Securities | ₹250 | Hold |
| Kotak Securities | ₹270 | Buy |
Most analysts recommend a Buy, expecting the stock to reach ₹250-₹280 by 2025.
Share Price Target for 2030 and 2035
Long-Term Price Target
| Timeframe | Low Target (₹) | High Target (₹) | Expected Growth (%) |
|---|---|---|---|
| 2030 | ₹500 | ₹650 | +140% to +200% |
| 2035 | ₹900 | ₹1,100 | +300% to +400% |
The company’s expansion in AI, cybersecurity, and cloud services will likely drive its long-term growth.
Risks & Challenges
Despite strong growth prospects, Allied Digital faces key risks:
- Market volatility & economic downturns
- Intense competition from large IT firms
- Regulatory changes impacting IT services
Risk Impact
| Risk Factor | Impact on Stock | Likelihood |
|---|---|---|
| Market Volatility | High | High |
| Competition | Medium | High |
| Regulatory Changes | High | Medium |
Investors should diversify their portfolios and monitor industry regulations to mitigate these risks.
Conclusion – Should You Invest in Allied Digital?
✅ Short-Term (2025): Moderate growth (Target: ₹250-₹280)
✅ Mid-Term (2030): Strong potential (Target: ₹500-₹650)
✅ Long-Term (2035): High returns expected (Target: ₹900-₹1,100)
Final Recommendation:
📌 BUY for long-term investors
⏳ HOLD for medium-term investors
⚠️ Short-term traders should watch for volatility
FAQs
Will Allied Digital stock reach ₹1,000 by 2035?
If growth continues at a CAGR of 15-18%, the stock could hit ₹900-₹1,100 by 2035.
Is Allied Digital a good stock for long-term investment?
Yes, with expansion in IT services, AI, and cybersecurity, the company has strong growth potential.
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