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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523411 | NSE: ADCINDIA

ADC India Communications Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 6:23 pm

Market Cap 799 Cr.
Current Price 1,736
High / Low2,310/810
Stock P/E27.5
Book Value 158
Dividend Yield0.29 %
ROCE45.2 %
ROE33.7 %
Face Value 10.0
PEG Ratio0.55

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

View Share Price Target for ADC India Communications Ltd

Competitors of ADC India Communications Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Indus Towers Ltd 85,632 Cr. 318461/17611.4 1050.00 %22.1 %24.2 % 10.0
Avantel Ltd 3,526 Cr. 145224/86.057.2 8.450.14 %47.5 %39.2 % 2.00
ADC India Communications Ltd 799 Cr. 1,7362,310/81027.5 1580.29 %45.2 %33.7 % 10.0
Shyam Telecom Ltd 37.9 Cr. 33.635.0/7.50 24.00.00 %%% 10.0
Prabhat Technologies (India) Ltd 107 Cr. 100114/85.0 1.500.00 %1.70 %4.26 % 10.0
Industry Average14,251.00 Cr423.2048.0846.500.07%21.43%21.15%8.70

All Competitor Stocks of ADC India Communications Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales27.0933.2724.5434.4533.2736.7338.3934.5244.2448.3142.0744.1148.63
Expenses24.5630.9222.5530.7530.3433.1833.5135.6544.6238.6833.9935.3940.12
Operating Profit2.532.351.993.702.933.554.88-1.13-0.389.638.088.728.51
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 Income0.210.160.480.260.260.390.260.190.320.390.500.730.88
Interest0.000.000.000.010.000.000.000.080.000.000.000.020.02
Depreciation0.090.080.070.060.060.050.050.050.050.050.050.050.05
Profit before tax2.652.432.403.893.133.895.09-1.07-0.119.978.539.389.32
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 Profit1.981.791.812.912.342.863.82-0.84-0.097.456.386.946.96
EPS in Rs4.303.893.936.335.096.228.30-1.83-0.2016.2013.8715.0915.13

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

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales394858586065867860121143179183
Expenses414754555662807355110133153148
Operating Profit-32334365511102635
OPM %-7%4%6%6%6%5%7%6%8%9%7%15%19%
Other Income-2243333111122
Interest0000000000000
Depreciation1010000110000
Profit before tax-64766695511112837
Tax %5%11%30%11%39%40%32%27%31%25%26%25%
Net Profit-635544644882128
EPS in Rs-13.177.2010.8311.358.437.7012.748.267.8718.4317.7644.9860.29
Dividend Payout %-11%35%277%22%36%52%188%24%32%76%23%67%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
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%

ADC India Communications Ltd 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:62%
3 Years:74%
1 Year:83%
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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555555555555
Reserves42443236404234363846476668
Borrowings0000000000000
Other Liabilities10142614151418152225263325
Total Liabilities566262545961575565767810497
Fixed Assets5544444433333
CWIP0000000000000
Investments0000000000000
Other Assets515758505657535162737510195
Total Assets566262545961575565767810497

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-71073305358-419
Cash from Investing Activity +222222111111
Cash from Financing Activity +-0-1-4-14-1-2-13-3-1-1-6-2
Net Cash Flow-6115-930-7147-1019

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-3.002.003.003.004.003.006.005.005.0011.0010.0026.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days15281776872696461109615157
Inventory Days1349347445361444589457260
Days Payable110108848696828177167907583
Cash Conversion Cycle1756540262949263030164835
Working Capital Days17680-33404350323847254639
ROCE %-3%8%17%15%15%13%20%13%13%24%22%45%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.02%72.02%72.02%72.02%72.02%72.02%72.02%72.02%72.02%72.02%72.02%72.02%
DIIs0.01%0.01%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public27.97%27.97%27.97%27.97%27.97%27.97%27.98%27.97%27.97%27.98%27.98%27.99%
No. of Shareholders4,2814,1874,2074,2564,3204,4214,4504,9834,7734,9274,9706,083

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)44.9717.7718.447.878.26
Diluted EPS (Rs.)44.9717.7718.447.878.26
Cash EPS (Rs.)45.4318.2319.118.9910.37
Book Value[Excl.RevalReserv]/Share (Rs.)154.03112.99109.2193.2087.34
Book Value[Incl.RevalReserv]/Share (Rs.)154.03112.99109.2193.2087.34
Dividend / Share (Rs.)30.004.0014.002.502.00
Revenue From Operations / Share (Rs.)388.57310.68258.53130.13169.85
PBDIT / Share (Rs.)60.8424.6625.4112.5713.58
PBIT / Share (Rs.)60.3824.2124.7411.4511.46
PBT / Share (Rs.)60.3224.0224.7111.3811.34
Net Profit / Share (Rs.)44.9717.7718.447.888.26
PBDIT Margin (%)15.657.939.839.657.99
PBIT Margin (%)15.537.799.578.806.74
PBT Margin (%)15.527.739.558.746.67
Net Profit Margin (%)11.575.727.136.054.86
Return on Networth / Equity (%)29.1915.7216.888.459.45
Return on Capital Employeed (%)38.9621.1822.5612.2312.95
Return On Assets (%)19.9410.4111.215.556.91
Asset Turnover Ratio (%)1.961.851.690.991.40
Current Ratio (X)2.982.682.722.613.22
Quick Ratio (X)2.301.812.242.102.66
Inventory Turnover Ratio (X)0.790.260.350.310.80
Dividend Payout Ratio (NP) (%)8.8978.7713.5525.3858.41
Dividend Payout Ratio (CP) (%)8.8076.8013.0822.2446.49
Earning Retention Ratio (%)91.1121.2386.4574.6241.59
Cash Earning Retention Ratio (%)91.2023.2086.9277.7653.51
Interest Coverage Ratio (X)1032.72130.12817.55185.85108.80
Interest Coverage Ratio (Post Tax) (X)764.3094.75594.19117.5267.16
Enterprise Value (Cr.)362.05242.00104.2667.2130.15
EV / Net Operating Revenue (X)2.031.690.871.120.38
EV / EBITDA (X)12.9421.338.9211.634.83
MarketCap / Net Operating Revenue (X)2.281.871.181.590.68
Retention Ratios (%)91.1021.2286.4474.6141.58
Price / BV (X)5.745.152.782.221.34
Price / Net Operating Revenue (X)2.281.871.181.590.68
EarningsYield0.050.030.060.030.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ADC India Communications Ltd as of November 17, 2024 is: 1,468.51

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 November 17, 2024, ADC India Communications Ltd is Overvalued by 15.41% compared to the current share price 1,736.00

Intrinsic Value of ADC India Communications Ltd as of November 17, 2024 is: 2,206.64

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 November 17, 2024, ADC India Communications Ltd is Undervalued by 27.11% compared to the current share price 1,736.00

Last 5 Year EPS CAGR: 50.26%

*Investments are subject to market risks

Strength and Weakness

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

Stock Analysis

  • 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 ADC India Communications Ltd:
    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: 17.15%)
      • 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: 16.92%)
      • 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: 27.5 (Industry average Stock P/E: 28.85)
      • 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.
INDUSTRYADDRESSCONTACT
Telecom EquipmentNo.10C, 2nd Phase, Bengaluru Karnataka 560058support@adckcl.com
http://www.adckcl.com
Management
NamePosition Held
Mr. Nagendra VenkaswamyChairman & Ind.Director
Mr. J N MylaraiahManaging Director
Ms. Vijaya Latha ReddyIndependent Director
Mr. Harish Hassan VisweswaraIndependent Director
Mr. Ravi Bosco RebelloNon Executive Director
Ms. Yaman RoyNon Executive Director
Mr. Rakesh Kishore BhanushaliNon 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 17 November 2024 is ₹1468.51, which is 15.41% lower than the current market price of ₹1,736.00.

What is the Market Cap of ADC India Communications Ltd?

The Market Cap of ADC India Communications Ltd is 799 Cr..

What is the current Stock Price of ADC India Communications Ltd as on 17 November 2024?

The current stock price of ADC India Communications Ltd as on 17 November 2024 is ₹1,736.

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

In FY 2024, 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 27.5.

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 0.29 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ADC India Communications Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE