Allied Digital Services - 532875

Name of Company	Allied Digital Services Ltd.
BSE Code	532875
NSE Code	ADSL
ICICI Code
Established	1995
My Take	Disike
Headquarters	Mumbai
Promoters	Nitn D Shah and family(Prakash Shah-CEO, Manoj Shah)
Story	Listed in 2007. Focus seems to be on manages IT services (where all IT systems including infrastructure, designing, development, deployment and maintainence are taken over). Was previously En pointe global services. Bangalore based Digicomp is a subsidiary. Offices in USA, India and Australia
Sector	IT Outsourcing
Sub-sector	Manages IT services
Website	http://www.allieddigital.in
Positives	Sales increased from 88 Cr in FY06 to 470 Cr in FY10. NP increased from 12 to 96 Cr in the same time frame. 43% promoter holding (not sure how much is pledged). NPMs have gone up from 13 to 20% from Fy06 to FY10.
Negatives	Started paying dividends only in 2009. RoCE has come down from 50% to 17% over the last 5 years. Growth numbers seem implausible for a small company with huge competitors.
Peers
News
Price @ blogged	83.8 (09-Mar-11)
Cost of company	389.67 market cap for a 103.76 Cr NP in FY ending Mar ' 10 makes it 3.76 times. This is for a company with 66.09 Cr debt and 611.89 Cr reserves. It seems too good to be true.