ICICI Securities 'puts' on Allied Digital
ICICI Securities has initiated coverage on Allied Digital Services (ADS) with a ‘buy’ rating.
Allied Digital
CMP: Rs 357.40
Target price: Rs 525
ICICI Securities has initiated coverage on Allied Digital Services (ADS) with a ���buy��� rating. According to I-Sec, ADS is a good buy considering strong earnings visibility, diversified business mix and improved margins.
The company has not been significantly affected by economic slowdown; ADS is expected to improve margins by 100-150 bps per annum as the business mix changes in favour of RIMS (remote infrastructure management services) offerings, the research note said.
���ADS is witnessing good traction in its IMS and RIMS offerings and has added many new clients recently. Mandatory compliance requirement and significant cost savings on the part of companies, are prime reasons for this growth in demand,��� the I-Sec report said.
The broking outfit is expecting to increased revenue visibility from the recently acquired EnPointe Global Services.
Factoring in expected slower growth in project-based system integration business, the outfit has reduced FY10 revenue and EPS estimates by 13.7% and 13.1%, respectively.
CMP: Rs 357.40
Target price: Rs 525
ICICI Securities has initiated coverage on Allied Digital Services (ADS) with a ���buy��� rating. According to I-Sec, ADS is a good buy considering strong earnings visibility, diversified business mix and improved margins.
The company has not been significantly affected by economic slowdown; ADS is expected to improve margins by 100-150 bps per annum as the business mix changes in favour of RIMS (remote infrastructure management services) offerings, the research note said.
���ADS is witnessing good traction in its IMS and RIMS offerings and has added many new clients recently. Mandatory compliance requirement and significant cost savings on the part of companies, are prime reasons for this growth in demand,��� the I-Sec report said.
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The broking outfit is expecting to increased revenue visibility from the recently acquired EnPointe Global Services.
Factoring in expected slower growth in project-based system integration business, the outfit has reduced FY10 revenue and EPS estimates by 13.7% and 13.1%, respectively.
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