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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

ADF Foods Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 1:10 pm

Market Cap 3,218 Cr.
Current Price 293
High / Low325/179
Stock P/E41.2
Book Value 42.2
Dividend Yield0.41 %
ROCE19.5 %
ROE16.3 %
Face Value 2.00
PEG Ratio6.10

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

View Share Price Target for ADF Foods Ltd

Competitors of ADF Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICL Organic Dairy Products Ltd 23.8 Cr. 39.744.0/39.71,192 20.10.00 %0.25 %0.17 % 10.0
Himalaya Food International Ltd 123 Cr. 21.229.9/17.619.6 24.40.00 %3.63 %3.61 % 10.0
Goldcoin Health Foods Ltd 3.65 Cr. 12.113.6/5.52 3.430.00 %18.4 %24.2 % 10.0
Galaxy Cloud Kitchens Ltd 292 Cr. 64.964.9/12.2 4.780.00 %%% 10.0
Foods & Inns Ltd 866 Cr. 119185/11531.9 70.20.25 %16.1 %12.3 % 1.00
Industry Average19,557.05 Cr1,004.82203.80128.910.18%18.91%18.90%6.26

All Competitor Stocks of ADF Foods Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8611011710897107123123112125130154122
Expenses749197938889969790103103119102
Operating Profit1219201591827262222273420
OPM %14%17%17%14%9%17%22%21%20%17%21%22%16%
Other Income4124443123425
Interest0011111111111
Depreciation1233334444444
Profit before tax1418181591825232021263120
Tax %22%29%24%26%18%24%27%30%27%27%27%19%26%
Net Profit1112141181419161515192514
EPS in Rs1.111.241.331.070.701.241.691.491.371.371.762.351.37

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales156179208204210201201231285370421450483
Expenses136162192188190179182202232302354369386
Operating Profit20171616202219295368678197
OPM %13%9%8%8%9%11%10%13%19%18%16%18%20%
Other Income31149461814969119
Interest2321111111232
Depreciation1071111125446691414
Profit before tax1017712112332385567657589
Tax %41%21%32%24%39%36%44%33%22%25%26%26%
Net Profit6145971518254350495664
EPS in Rs0.631.280.510.800.601.381.702.534.275.004.595.105.92
Dividend Payout %48%24%59%38%0%37%0%0%14%12%18%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)133.33%-64.29%80.00%-22.22%114.29%20.00%38.89%72.00%16.28%-2.00%14.29%
Change in YoY Net Profit Growth (%)0.00%-197.62%144.29%-102.22%136.51%-94.29%18.89%33.11%-55.72%-18.28%16.29%

ADF Foods Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:18%
3 Years:12%
TTM:17%
Compounded Profit Growth
10 Years:32%
5 Years:22%
3 Years:12%
TTM:22%
Stock Price CAGR
10 Years:37%
5 Years:36%
3 Years:19%
1 Year:29%
Return on Equity
10 Years:14%
5 Years:17%
3 Years:16%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital222222222222202020212222
Reserves127126131136145153151184235313397419
Borrowings4328186510231705556
Other Liabilities232524211930233767644653
Total Liabilities215201194185191205195265324468520550
Fixed Assets878093838180697777160175182
CWIP092010120075
Investments3021888001817398077
Other Assets98919294100125125167229268259285
Total Assets215201194185191205195265324468520550

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2186151724203136345170
Cash from Investing Activity +-235181-44-1-39-9-53-6013
Cash from Financing Activity +18-21-21-18-12-11-3214-733-5-63
Net Cash Flow-333-1117-1462014-1420

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow20.00-26.00-12.00-2.0014.0017.0018.0029.0030.0067.00-3.0026.00

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 Days765358636278696864617676
Inventory Days15611198851049413115814315613297
Days Payable525137374455526268654744
Cash Conversion Cycle180113120112122117148165139153162130
Working Capital Days127847896106104117111111118120113
ROCE %7%4%6%7%14%19%23%28%28%20%17%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters31.42%31.42%33.58%36.59%36.60%36.60%36.50%36.50%36.29%36.28%36.42%36.33%
FIIs10.04%10.06%9.66%9.31%9.37%9.44%9.38%9.46%9.57%9.57%9.55%9.51%
DIIs1.66%1.67%1.59%6.03%7.03%7.67%7.88%7.91%7.91%8.01%8.64%8.65%
Public56.88%56.85%55.17%48.07%47.00%46.30%46.24%46.12%46.24%46.15%45.39%45.50%
No. of Shareholders27,45828,65927,50627,59928,70326,55426,38326,15131,52639,81240,41138,838

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
FaceValue2.0010.0010.0010.0010.00
Basic EPS (Rs.)6.8525.6223.9725.0121.36
Diluted EPS (Rs.)6.8525.6223.3323.9621.36
Cash EPS (Rs.)8.0031.1426.9927.4323.68
Book Value[Excl.RevalReserv]/Share (Rs.)39.55188.63161.91134.07100.20
Book Value[Incl.RevalReserv]/Share (Rs.)39.55188.63161.91134.07100.20
Revenue From Operations / Share (Rs.)46.56201.46197.34181.03139.80
PBDIT / Share (Rs.)10.3841.0935.6236.1630.48
PBIT / Share (Rs.)8.9834.9531.3633.2727.77
PBT / Share (Rs.)8.7833.7630.5232.7026.95
Net Profit / Share (Rs.)6.6024.9922.7324.5420.97
NP After MI And SOA / Share (Rs.)6.7425.1022.5324.5420.97
PBDIT Margin (%)22.2920.3918.0419.9721.79
PBIT Margin (%)19.2917.3415.8918.3719.86
PBT Margin (%)18.8416.7515.4618.0619.27
Net Profit Margin (%)14.1812.4011.5213.5514.99
NP After MI And SOA Margin (%)14.4612.4511.4113.5514.99
Return on Networth / Equity (%)17.0613.3814.0218.3020.92
Return on Capital Employeed (%)19.9416.2016.1324.0726.58
Return On Assets (%)13.5310.6810.2215.3115.73
Long Term Debt / Equity (X)0.000.000.030.000.00
Total Debt / Equity (X)0.000.000.040.000.11
Asset Turnover Ratio (%)0.960.750.840.790.79
Current Ratio (X)6.677.665.375.293.02
Quick Ratio (X)5.666.194.003.682.09
Inventory Turnover Ratio (X)2.912.542.222.522.63
Dividend Payout Ratio (NP) (%)72.9615.660.000.0014.04
Dividend Payout Ratio (CP) (%)60.4412.580.000.0012.43
Earning Retention Ratio (%)27.0484.340.000.0085.96
Cash Earning Retention Ratio (%)39.5687.420.000.0087.57
Interest Coverage Ratio (X)49.6534.6242.0263.5946.60
Interest Coverage Ratio (Post Tax) (X)32.5822.0527.8244.1733.30
Enterprise Value (Cr.)2000.011600.231592.411754.86334.08
EV / Net Operating Revenue (X)3.843.553.784.751.17
EV / EBITDA (X)17.2417.4220.9523.795.37
MarketCap / Net Operating Revenue (X)3.973.693.924.931.22
Retention Ratios (%)27.0384.330.000.0085.95
Price / BV (X)4.693.964.826.651.70
Price / Net Operating Revenue (X)3.973.693.924.931.22
EarningsYield0.030.030.020.020.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ADF Foods Ltd as of November 14, 2024 is: 284.56

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 14, 2024, ADF Foods Ltd is Overvalued by 2.88% compared to the current share price 293.00

Intrinsic Value of ADF Foods Ltd as of November 14, 2024 is: 303.78

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 14, 2024, ADF Foods Ltd is Undervalued by 3.68% compared to the current share price 293.00

Last 5 Year EPS CAGR: 6.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.08%, which is a positive sign.
  2. The company has higher reserves (209.75 cr) compared to borrowings (25.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (276.85 cr) and profit (38.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 107.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 138.42, 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 ADF Foods Ltd:
    1. Net Profit Margin: 14.18%
      • 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: 19.94% (Industry Average ROCE: 18.91%)
      • 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%: 17.06% (Industry Average ROE: 18.9%)
      • 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): 32.58
      • 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: 5.66
      • 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: 41.2 (Industry average Stock P/E: 203.8)
      • 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

ADF Foods Ltd. is a Public Limited Listed company incorporated on 27/08/1990 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L15400GJ1990PLC014265 and registration number is 014265. Currently company belongs to the Industry of Food Processing - Bakery/Dairy/Fruits/Others. Company’s Total Operating Revenue is Rs. 302.01 Cr. and Equity Capital is Rs. 21.34 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Food Processing - Bakery/Dairy/Fruits/Others83/86, GIDC Industrial Estate, Nadiad Gujarat 387001nadiadfactory@adf-foods.com
http://www.adf-foods.com
Management
NamePosition Held
Mr. Bimal R ThakkarChairman & M.D & CEO
Mr. Arjuun GuuhaWhole Time Director
Mr. Jay M MehtaNon Executive Director
Mr. Viren A MerchantNon Executive Director
Ms. Deepa Misra HarrisIndependent Director
Mr. Ravinder Kumar JainIndependent Director
Mr. Chandir G GidwaniIndependent Director
Mr. Pheroze MistryIndependent Director
Mr. M M SrivastavaAddnl. & Ind.Director

FAQ

What is the latest intrinsic value of ADF Foods Ltd?

The latest intrinsic value of ADF Foods Ltd as on 14 November 2024 is ₹284.56, which is 2.88% lower than the current market price of ₹293.00.

What is the Market Cap of ADF Foods Ltd?

The Market Cap of ADF Foods Ltd is 3,218 Cr..

What is the current Stock Price of ADF Foods Ltd as on 14 November 2024?

The current stock price of ADF Foods Ltd as on 14 November 2024 is ₹293.

What is the High / Low of ADF Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of ADF Foods Ltd stocks is 325/179.

What is the Stock P/E of ADF Foods Ltd?

The Stock P/E of ADF Foods Ltd is 41.2.

What is the Book Value of ADF Foods Ltd?

The Book Value of ADF Foods Ltd is 42.2.

What is the Dividend Yield of ADF Foods Ltd?

The Dividend Yield of ADF Foods Ltd is 0.41 %.

What is the ROCE of ADF Foods Ltd?

The ROCE of ADF Foods Ltd is 19.5 %.

What is the ROE of ADF Foods Ltd?

The ROE of ADF Foods Ltd is 16.3 %.

What is the Face Value of ADF Foods Ltd?

The Face Value of ADF Foods Ltd is 2.00.

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 ADF Foods 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