Pick of the Week: Allied Digital

FOR SHORT TERM - MEDIUM TERM

BUY BUY BUY: ALLIED DIGITAL

Equity: 17.37Cr, BSE Code: 532875, CMP: 749.90

Allied Digital Services Ltd. (ADSL), a 12-year old Mumbai based company was established in 1995 as a private limited company and later became public limited in 2006. It is engaged in the business of providing a wide spectrum of IT solutions & services to a diverse customer base. ADSL is basically an IT Infrastructure Management and Technical Support Services outsourcing company. It has enabled global, large and medium enterprises and service providers to reduce their total cost of ownership using a combination of onsite and remote services. Its Security Operations Centre facility has state-of-the-art Physical Security Systems ranging from Biometric Access Control, Closed Circuit TV, Fire-detection and Suppression Systems. Mr. Nitin Shah is the chairman and managing director of the company. ADSL, a Systems Integrator and IT Infrastructure Management Services Provider, operates across a network of 92 locations in 25 states across India with a team of about 1,250 employees country-wide. During September 2007, the company announced the launch of Remote Management Services (RMS) consisting of Network Operations Centre (NOC) and Information Security Operation Centre (SOC) at the Millennium Business Park, a Software Technology Park at Mahape near Mumbai. These RMS are supported by Intel Inc, E-Cop, Singapore and HP. NOC comprises monitoring and management of a wide variety of devices & platforms and applications. The company plans to use a combination of industry standard remote monitoring & management systems (RMS), Managed Security Services (MSS) and 'Cheque Truncation Services' (CTS). ADSL has also forged technology and strategic alliances with international leading companies like IBM, Microsoft, Intel, Unisys, CISCO Systems, Stonesoft, Resilience and domestic outfits like NIIT, HP, etc.

The company's clientele includes leading corporate spanning across sectors like banking, finance, insurance manufacturing, services and retail. They include reputed names like Reliance, Pfizer, Thermax, Glaxo and Maruti from the manufacturing sector; ICICI Bank, SBI, BOI, HSBC, HDFC bank and others from the banking sector; TCS, NIIT, Syntel from the IT sector; Reliance Power, BHEL, GAIL, Tata Power, etc. from the power sector and Shoppers Stop and McDonalds from retail. Sales and NP for year ended 07-08 were 297.4 Cr & 43.6 Cr. Sales and NP for latest Quarter 89.6 Cr & 15.7 Cr. Based on quarter latest NP increased by 90 %