Allied Digital Services Ltd: Q2FY14 result analysis

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On a consolidated basis, Allied Digital Services Ltd came up with a subdued top line (flat when considered sequentially) and a much better bottomline on Y-o-Y basis in Q2FY15. 

The total income of the company in QFY15 came out to be Rs.66.89 Cr as against Rs.82.26 Cr in the corresponding quarter previous year and Rs.67.91 Cr in Q1FY15. 

The net profit of the company for Q2FY15 came out to be Rs.6.14 Cr as against a loss of Rs.7.29 Cr in Q1FY15 and a profit of Rs.4.53 Cr in Q2FY14. 

In the full year the company could come up with an EPS of Rs.3+. The investors are therefore, suggested to refrain from taking fresh positions in the company, till we see the Q3FY15 results, where according to my close sources, a confirmation of a likely turnaround is on the cards; with the caveat, that source based news could get horribly wrong, trapping the investors. 

The book value of the shares of Allied Digital Services Ltd (Rs.18.60) is Rs.149.40 and it has a market cap of Rs.90.53 Cr. Those who are holding can continue to hold the scrip with a SL of Rs.17.50 (exit).