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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523411 | NSE: ADCINDIA

Fundamental Analysis of ADC India Communications Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:24 pm

Market Cap 866 Cr.
Current Price 1,882
High / Low2,310/677
Stock P/E41.8
Book Value 154
Dividend Yield0.27 %
ROCE45.2 %
ROE33.7 %
Face Value 10.0
PEG Ratio1.04

Data Source: screener.in

Competitors of ADC India Communications Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NELCO Ltd 1,845 Cr. 807957/64382.0 54.20.27 %23.4 %20.7 % 10.0
ITI Ltd 29,167 Cr. 303384/108 18.20.00 %8.44 %27.8 % 10.0
Prabhat Technologies (India) Ltd 107 Cr. 100268/85.0 1.500.00 %1.70 %4.26 % 10.0
Optiemus Infracom Ltd 3,337 Cr. 388432/20158.8 49.70.39 %15.4 %14.0 % 10.0
MRO-TEK Realty Ltd 149 Cr. 79.4116/51.141.3 37.20.00 %7.72 %5.34 % 5.00
Industry Average19,052.98 Cr288.8836.0536.380.10%15.55%17.05%8.38

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales21.1027.0933.2724.5434.4533.2736.7338.3934.5244.2448.3142.0744.11
Expenses18.7524.5630.9222.5530.7530.3433.1833.5135.6544.6238.6833.9935.39
Operating Profit2.352.532.351.993.702.933.554.88-1.13-0.389.638.088.72
OPM %11.14%9.34%7.06%8.11%10.74%8.81%9.67%12.71%-3.27%-0.86%19.93%19.21%19.77%
Other Income0.390.210.160.480.260.260.390.260.190.320.390.500.73
Interest0.030.000.000.000.010.000.000.000.080.000.000.000.02
Depreciation0.090.090.080.070.060.060.050.050.050.050.050.050.05
Profit before tax2.622.652.432.403.893.133.895.09-1.07-0.119.978.539.38
Tax %32.82%25.28%25.93%24.58%25.45%25.56%26.48%25.15%21.50%18.18%25.18%25.21%25.91%
Net Profit1.761.981.791.812.912.342.863.82-0.84-0.097.456.386.94
EPS in Rs3.834.303.893.936.335.096.228.30-1.83-0.2016.2013.8715.09

Last Updated: July 10, 2024, 11:43 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 11:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales394858586065867860121143179
Expenses414754555662807355110133153
Operating Profit-323343655111026
OPM %-7%4%6%6%6%5%7%6%8%9%7%15%
Other Income-224333311112
Interest000000000000
Depreciation101000011000
Profit before tax-647666955111128
Tax %-5%11%30%11%39%40%32%27%31%25%26%25%
Net Profit-6355446448821
EPS in Rs-13.177.2010.8311.358.437.7012.748.267.8718.4317.7644.98
Dividend Payout %-11%35%277%22%36%52%188%24%32%76%23%11%

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%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:16%
3 Years:44%
TTM:25%
Compounded Profit Growth
10 Years:20%
5 Years:29%
3 Years:79%
TTM:153%
Stock Price CAGR
10 Years:27%
5 Years:57%
3 Years:91%
1 Year:103%
Return on Equity
10 Years:15%
5 Years:19%
3 Years:23%
Last Year:34%

Last Updated: July 16, 2024, 4:53 pm

Balance Sheet

Last Updated: July 10, 2024, 11:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital555555555555
Reserves424432364042343638464766
Borrowings000000000000
Other Liabilities101426141514181522252633
Total Liabilities5662625459615755657678104
Fixed Assets554444443333
CWIP000000000000
Investments000000000000
Other Assets5157585056575351627375101
Total Assets5662625459615755657678104

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days207152817768726964611096151
Inventory Days28713493474453614445894572
Days Payable1731101088486968281771679078
Cash Conversion Cycle32217565402629492630301645
Working Capital Days28217680-334043503238472546
ROCE %-3%8%17%15%15%13%20%13%13%24%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%0.01%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%27.97%27.98%27.97%27.97%27.98%27.98%
No. of Shareholders4,2274,2814,1874,2074,2564,3204,4214,4504,9834,7734,9274,970

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) (%)0.0078.7713.5525.3858.41
Dividend Payout Ratio (CP) (%)0.0076.8013.0822.2446.49
Earning Retention Ratio (%)0.0021.2386.4574.6241.59
Cash Earning Retention Ratio (%)0.0023.2086.9277.7653.51
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 (%)0.0021.2286.4474.6141.58
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: 2,175.19

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.

Undervalued: 15.58% compared to the current price 1882

Intrinsic Value: 3,052.85

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 62.21% compared to the current price 1882

Last 5 Year EPS CAGR: 40.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (41.92 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (82.92 cr) and profit (7.67 cr) over the years.
  1. The stock has a low average ROCE of 13.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 68.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 71.08, 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: %)
      • 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: %)
      • 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): 764.30
      • 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: 2.30
      • 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: 41.8 (Industry average Stock P/E: )
      • 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: N/A
      • 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

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, 1st Main, Bengaluru Karnataka 560058support@adckcl.com
http://www.adckcl.com
Management
NamePosition Held
Mr. S DevarajanChairman & Ind.Director
Mr. J N MylaraiahManaging Director
Ms. Revathy AshokIndependent Director
Ms. Vijaya Latha ReddyIndependent Director
Ms. Yaman RoyNon Executive Director
Mr. Ravi Bosco RebelloNon Executive Director

FAQ

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

The latest fair value of ADC India Communications Ltd is ₹2175.19.

What is the Market Cap of ADC India Communications Ltd?

The Market Cap of ADC India Communications Ltd is 866 Cr..

What is the current Stock Price of ADC India Communications Ltd as on 19 July 2024?

The current stock price of ADC India Communications Ltd as on 19 July 2024 is 1,882.

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 2,310/677.

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

The Stock P/E of ADC India Communications Ltd is 41.8.

What is the Book Value of ADC India Communications Ltd?

The Book Value of ADC India Communications Ltd is 154.

What is the Dividend Yield of ADC India Communications Ltd?

The Dividend Yield of ADC India Communications Ltd is 0.27 %.

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