ADC India Communications Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:32 am

Market Cap	817 Cr.
Current Price	1,776
High / Low	2,310/810
Stock P/E	28.2
Book Value	158
Dividend Yield	0.28 %
ROCE	45.2 %
ROE	33.7 %
Face Value	10.0
PEG Ratio	0.56

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Munoth Communication Ltd	15.0 Cr.	15.6	20.0/8.60		14.9	0.00 %	1.61 %	4.27 %	10.0
Indus Towers Ltd	90,846 Cr.	337	461/182	12.0	105	0.00 %	22.1 %	24.2 %	10.0
Avantel Ltd	3,898 Cr.	160	224/86.0	63.2	8.45	0.12 %	47.5 %	39.2 %	2.00
ADC India Communications Ltd	817 Cr.	1,776	2,310/810	28.2	158	0.28 %	45.2 %	33.7 %	10.0
Shyam Telecom Ltd	28.4 Cr.	25.2	35.0/8.46		24.0	0.00 %	%	%	10.0
Industry Average	15,683.00 Cr	417.07		56.96	42.40	0.06%	18.64%	18.28%	8.17

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	27.09	33.27	24.54	34.45	33.27	36.73	38.39	34.52	44.24	48.31	42.07	44.11	48.63
Expenses	24.56	30.92	22.55	30.75	30.34	33.18	33.51	35.65	44.62	38.68	33.99	35.39	40.12
Operating Profit	2.53	2.35	1.99	3.70	2.93	3.55	4.88	-1.13	-0.38	9.63	8.08	8.72	8.51
OPM %	9.34%	7.06%	8.11%	10.74%	8.81%	9.67%	12.71%	-3.27%	-0.86%	19.93%	19.21%	19.77%	17.50%
Other Income	0.21	0.16	0.48	0.26	0.26	0.39	0.26	0.19	0.32	0.39	0.50	0.73	0.88
Interest	0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.08	0.00	0.00	0.00	0.02	0.02
Depreciation	0.09	0.08	0.07	0.06	0.06	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05
Profit before tax	2.65	2.43	2.40	3.89	3.13	3.89	5.09	-1.07	-0.11	9.97	8.53	9.38	9.32
Tax %	25.28%	25.93%	24.58%	25.45%	25.56%	26.48%	25.15%	-21.50%	-18.18%	25.18%	25.21%	25.91%	25.32%
Net Profit	1.98	1.79	1.81	2.91	2.34	2.86	3.82	-0.84	-0.09	7.45	6.38	6.94	6.96
EPS in Rs	4.30	3.89	3.93	6.33	5.09	6.22	8.30	-1.83	-0.20	16.20	13.87	15.09	15.13

Last Updated: October 7, 2024, 8:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	39	48	58	58	60	65	86	78	60	121	143	179	183
Expenses	41	47	54	55	56	62	80	73	55	110	133	153	148
Operating Profit	-3	2	3	3	4	3	6	5	5	11	10	26	35
OPM %	-7%	4%	6%	6%	6%	5%	7%	6%	8%	9%	7%	15%	19%
Other Income	-2	2	4	3	3	3	3	1	1	1	1	2	2
Interest	0	0	0	0	0	0	0	0	0	0	0	0	0
Depreciation	1	0	1	0	0	0	0	1	1	0	0	0	0
Profit before tax	-6	4	7	6	6	6	9	5	5	11	11	28	37
Tax %	5%	11%	30%	11%	39%	40%	32%	27%	31%	25%	26%	25%
Net Profit	-6	3	5	5	4	4	6	4	4	8	8	21	28
EPS in Rs	-13.17	7.20	10.83	11.35	8.43	7.70	12.74	8.26	7.87	18.43	17.76	44.98	60.29
Dividend Payout %	-11%	35%	277%	22%	36%	52%	188%	24%	32%	76%	23%	67%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	150.00%	66.67%	0.00%	-20.00%	0.00%	50.00%	-33.33%	0.00%	100.00%	0.00%	162.50%
Change in YoY Net Profit Growth (%)	0.00%	-83.33%	-66.67%	-20.00%	20.00%	50.00%	-83.33%	33.33%	100.00%	-100.00%	162.50%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	14%
5 Years:	16%
3 Years:	44%
TTM:	12%

Compounded Profit Growth
10 Years:	20%
5 Years:	29%
3 Years:	79%
TTM:	180%

Stock Price CAGR
10 Years:	23%
5 Years:	60%
3 Years:	78%
1 Year:	97%

Return on Equity
10 Years:	15%
5 Years:	19%
3 Years:	23%
Last Year:	34%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:59 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	5	5	5	5	5	5	5	5	5	5	5	5	5
Reserves	42	44	32	36	40	42	34	36	38	46	47	66	68
Borrowings	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Liabilities	10	14	26	14	15	14	18	15	22	25	26	33	25
Total Liabilities	56	62	62	54	59	61	57	55	65	76	78	104	97
Fixed Assets	5	5	4	4	4	4	4	4	3	3	3	3	3
CWIP	0	0	0	0	0	0	0	0	0	0	0	0	0
Investments	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Assets	51	57	58	50	56	57	53	51	62	73	75	101	95
Total Assets	56	62	62	54	59	61	57	55	65	76	78	104	97

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-7	10	7	3	3	0	5	3	5	8	-4	19
Cash from Investing Activity +	2	2	2	2	2	2	1	1	1	1	1	1
Cash from Financing Activity +	-0	-1	-4	-14	-1	-2	-13	-3	-1	-1	-6	-2
Net Cash Flow	-6	11	5	-9	3	0	-7	1	4	7	-10	19

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-3.00	2.00	3.00	3.00	4.00	3.00	6.00	5.00	5.00	11.00	10.00	26.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	152	81	77	68	72	69	64	61	109	61	51	57
Inventory Days	134	93	47	44	53	61	44	45	89	45	72	60
Days Payable	110	108	84	86	96	82	81	77	167	90	75	83
Cash Conversion Cycle	175	65	40	26	29	49	26	30	30	16	48	35
Working Capital Days	176	80	-33	40	43	50	32	38	47	25	46	39
ROCE %	-3%	8%	17%	15%	15%	13%	20%	13%	13%	24%	22%	45%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%	72.02%
DIIs	0.01%	0.01%	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	27.97%	27.97%	27.97%	27.97%	27.97%	27.97%	27.98%	27.97%	27.97%	27.98%	27.98%	27.99%
No. of Shareholders	4,281	4,187	4,207	4,256	4,320	4,421	4,450	4,983	4,773	4,927	4,970	6,083

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	44.97	17.77	18.44	7.87	8.26
Diluted EPS (Rs.)	44.97	17.77	18.44	7.87	8.26
Cash EPS (Rs.)	45.43	18.23	19.11	8.99	10.37
Book Value[Excl.RevalReserv]/Share (Rs.)	154.03	112.99	109.21	93.20	87.34
Book Value[Incl.RevalReserv]/Share (Rs.)	154.03	112.99	109.21	93.20	87.34
Dividend / Share (Rs.)	30.00	4.00	14.00	2.50	2.00
Revenue From Operations / Share (Rs.)	388.57	310.68	258.53	130.13	169.85
PBDIT / Share (Rs.)	60.84	24.66	25.41	12.57	13.58
PBIT / Share (Rs.)	60.38	24.21	24.74	11.45	11.46
PBT / Share (Rs.)	60.32	24.02	24.71	11.38	11.34
Net Profit / Share (Rs.)	44.97	17.77	18.44	7.88	8.26
PBDIT Margin (%)	15.65	7.93	9.83	9.65	7.99
PBIT Margin (%)	15.53	7.79	9.57	8.80	6.74
PBT Margin (%)	15.52	7.73	9.55	8.74	6.67
Net Profit Margin (%)	11.57	5.72	7.13	6.05	4.86
Return on Networth / Equity (%)	29.19	15.72	16.88	8.45	9.45
Return on Capital Employeed (%)	38.96	21.18	22.56	12.23	12.95
Return On Assets (%)	19.94	10.41	11.21	5.55	6.91
Asset Turnover Ratio (%)	1.96	1.85	1.69	0.99	1.40
Current Ratio (X)	2.98	2.68	2.72	2.61	3.22
Quick Ratio (X)	2.30	1.81	2.24	2.10	2.66
Inventory Turnover Ratio (X)	0.79	0.26	0.35	0.31	0.80
Dividend Payout Ratio (NP) (%)	8.89	78.77	13.55	25.38	58.41
Dividend Payout Ratio (CP) (%)	8.80	76.80	13.08	22.24	46.49
Earning Retention Ratio (%)	91.11	21.23	86.45	74.62	41.59
Cash Earning Retention Ratio (%)	91.20	23.20	86.92	77.76	53.51
Interest Coverage Ratio (X)	1032.72	130.12	817.55	185.85	108.80
Interest Coverage Ratio (Post Tax) (X)	764.30	94.75	594.19	117.52	67.16
Enterprise Value (Cr.)	362.05	242.00	104.26	67.21	30.15
EV / Net Operating Revenue (X)	2.03	1.69	0.87	1.12	0.38
EV / EBITDA (X)	12.94	21.33	8.92	11.63	4.83
MarketCap / Net Operating Revenue (X)	2.28	1.87	1.18	1.59	0.68
Retention Ratios (%)	91.10	21.22	86.44	74.61	41.58
Price / BV (X)	5.74	5.15	2.78	2.22	1.34
Price / Net Operating Revenue (X)	2.28	1.87	1.18	1.59	0.68
EarningsYield	0.05	0.03	0.06	0.03	0.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 1,505.74

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Overvalued by 15.22% compared to the current share price 1,776.00

Intrinsic Value of as of December 21, 2024 is: 2,262.58

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 27.40% compared to the current share price 1,776.00

Last 5 Year EPS CAGR: 50.26%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 16.83%, which is a positive sign. The company has higher reserves (43.92 cr) compared to borrowings (0.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (90.62 cr) and profit (9.92 cr) over the years.	The stock has a high average Working Capital Days of 48.58, which may not be favorable. The stock has a high average Cash Conversion Cycle of 47.42, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 11.57%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 38.96% (Industry Average ROCE: 18.64%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 29.19% (Industry Average ROE: 18.28%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 764.3
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.3
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 28.2 (Industry average Stock P/E: 56.96)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

ADC India Communications Ltd. is a Public Limited Listed company incorporated on 26/07/1988 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L32209KA1988PLC009313 and registration number is 009313. Currently Company is involved in the business activities of Manufacture of other communication equipments. Company’s Total Operating Revenue is Rs. 118.93 Cr. and Equity Capital is Rs. 4.60 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Telecom Equipment	No.10C, 2nd Phase, Bengaluru Karnataka 560058	support@adckcl.com http://www.adckcl.com

Management
Name	Position Held
Mr. Nagendra Venkaswamy	Chairman & Ind.Director
Mr. J N Mylaraiah	Managing Director
Ms. Vijaya Latha Reddy	Independent Director
Mr. Harish Hassan Visweswara	Independent Director
Mr. Ravi Bosco Rebello	Non Executive Director
Ms. Yaman Roy	Non Executive Director
Mr. Rakesh Kishore Bhanushali	Non Executive Director

FAQ

What is the latest intrinsic value of ADC India Communications Ltd?

The latest intrinsic value of ADC India Communications Ltd as on 20 December 2024 is ₹1505.74, which is 15.22% lower than the current market price of ₹1,776.00. The stock has a market capitalization of 817 Cr. and recorded a high/low of 2,310/810 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹68 Cr and total liabilities of ₹97 Cr.

What is the Market Cap of ADC India Communications Ltd?

The Market Cap of ADC India Communications Ltd is 817 Cr..

What is the current Stock Price of ADC India Communications Ltd as on 20 December 2024?

The current stock price of ADC India Communications Ltd as on 20 December 2024 is 1,776.

What is the High / Low of ADC India Communications Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of ADC India Communications Ltd stocks is 2,310/810.

What is the Stock P/E of ADC India Communications Ltd?

The Stock P/E of ADC India Communications Ltd is 28.2.

What is the Book Value of ADC India Communications Ltd?

The Book Value of ADC India Communications Ltd is 158.

What is the Dividend Yield of ADC India Communications Ltd?

The Dividend Yield of ADC India Communications Ltd is 0.28 %.

What is the ROCE of ADC India Communications Ltd?

The ROCE of ADC India Communications Ltd is 45.2 %.

What is the ROE of ADC India Communications Ltd?

The ROE of ADC India Communications Ltd is 33.7 %.

What is the Face Value of ADC India Communications Ltd?

The Face Value of ADC India Communications Ltd is 10.0.