Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 27 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 530431 | NSE: ADORFO

Ador Fontech Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 13, 2024, 11:53 pm

Market Cap 499 Cr.
Current Price 142
High / Low 170/112
Stock P/E19.4
Book Value 45.0
Dividend Yield4.21 %
ROCE22.9 %
ROE17.4 %
Face Value 2.00
PEG Ratio1.29

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

View Share Price Target for Ador Fontech Ltd

Competitors of Ador Fontech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.0 32.8/19.9 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 2,700 Cr. 713 1,377/71133.2 1550.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 1,726 Cr. 172 675/161 2510.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average2,695.17N/A131.67N/AN/A20.6161.73N/A

All Competitor Stocks of Ador Fontech Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales53.2751.8749.4650.1448.7450.5352.9355.5848.5752.6348.3554.2542.71
Expenses45.0344.3341.5441.7441.8343.4844.8546.1741.2943.9741.1447.9337.22
Operating Profit8.247.547.928.406.917.058.089.417.288.667.216.325.49
OPM %15.47%14.54%16.01%16.75%14.18%13.95%15.27%16.93%14.99%16.45%14.91%11.65%12.85%
Other Income0.891.570.922.281.081.111.500.551.461.122.033.982.48
Interest0.000.000.000.000.000.000.000.000.000.000.000.000.00
Depreciation0.570.620.630.890.820.900.920.480.700.730.730.790.65
Profit before tax8.568.498.219.797.177.268.669.488.049.058.519.517.32
Tax %12.50%32.27%21.07%41.57%29.43%33.61%22.63%32.59%25.12%26.08%25.38%20.61%30.74%
Net Profit7.495.756.485.725.064.826.706.396.026.696.357.555.07
EPS in Rs2.141.641.851.631.451.381.911.831.721.911.812.161.45

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales150139137142146151184175147205208204198
Expenses128119117127132137164158126173176174170
Operating Profit22202016141320172032312928
OPM %15%15%14%11%10%9%11%10%14%16%15%14%14%
Other Income123443333264910
Interest0000000000000
Depreciation3343333323333
Profit before tax31202016131320172035333534
Tax %33%36%33%37%33%33%31%34%37%27%29%24%
Net Profit211313109914111325232726
EPS in Rs5.913.653.812.962.522.573.953.243.637.276.587.607.33
Dividend Payout %30%48%46%59%59%58%44%56%61%69%76%79%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-38.10%0.00%-23.08%-10.00%0.00%55.56%-21.43%18.18%92.31%-8.00%17.39%
Change in YoY Net Profit Growth (%)0.00%38.10%-23.08%13.08%10.00%55.56%-76.98%39.61%74.13%-100.31%25.39%

Ador Fontech 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:4%
5 Years:2%
3 Years:12%
TTM:-5%
Compounded Profit Growth
10 Years:8%
5 Years:14%
3 Years:28%
TTM:7%
Stock Price CAGR
10 Years:11%
5 Years:27%
3 Years:25%
1 Year:1%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:17%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444477777
Reserves7480868991101109102115133142150
Borrowings222200000000
Other Liabilities373437383628273529292622
Total Liabilities117119128132131132140144150169175179
Fixed Assets192121222019172726282826
CWIP000001122000
Investments71010101522282027303133
Other Assets9188971009691949694111115120
Total Assets117119128132131132140144150169175179

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +76147247245172419
Cash from Investing Activity +11-1-1-10-2-9-4-9-9-2
Cash from Financing Activity +-6-7-7-7-6-2-6-14-3-8-14-18
Net Cash Flow116-2-53-10-3-010

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow20.0018.0018.0014.0014.0013.0020.0017.0020.0032.0031.0029.00

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 Days637272847662466968495453
Inventory Days1031121201111069275109120746871
Days Payable604445598557549689695451
Cash Conversion Cycle1051401471359798688299546773
Working Capital Days66908682939285881007788125
ROCE %33%24%23%18%14%13%18%15%17%27%22%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters39.28%39.23%39.23%39.23%39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%
FIIs0.15%0.25%0.25%0.19%0.19%0.19%0.19%0.23%0.19%0.19%0.19%0.19%
Public60.57%60.52%60.52%60.58%60.57%60.58%60.58%60.54%60.57%60.57%60.58%60.57%
No. of Shareholders12,16812,45613,67314,34314,30813,80613,24812,95513,45113,48113,63815,986

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
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.805.006.102.903.30
Diluted EPS (Rs.)6.805.006.102.903.30
Cash EPS (Rs.)7.726.047.093.723.44
Book Value[Excl.RevalReserv]/Share (Rs.)37.7936.1635.0931.1328.19
Book Value[Incl.RevalReserv]/Share (Rs.)37.7936.1635.0931.1328.19
Revenue From Operations / Share (Rs.)60.0461.2159.8742.7250.61
PBDIT / Share (Rs.)9.958.719.495.734.93
PBIT / Share (Rs.)9.017.698.514.884.02
PBT / Share (Rs.)9.017.688.474.703.89
Net Profit / Share (Rs.)6.785.026.112.872.52
NP After MI And SOA / Share (Rs.)6.785.026.112.872.52
PBDIT Margin (%)16.5714.2315.8413.419.74
PBIT Margin (%)15.0112.5614.2111.427.93
PBT Margin (%)15.0112.5514.1511.007.68
Net Profit Margin (%)11.298.1910.206.714.98
NP After MI And SOA Margin (%)11.298.1910.206.714.98
Return on Networth / Equity (%)17.9513.8717.419.218.95
Return on Capital Employeed (%)23.8021.2124.1315.5213.65
Return On Assets (%)14.9811.2713.567.066.25
Total Debt / Equity (X)0.000.000.000.010.05
Asset Turnover Ratio (%)1.341.251.311.011.24
Current Ratio (X)4.844.233.563.312.59
Quick Ratio (X)3.963.432.882.511.84
Inventory Turnover Ratio (X)2.562.551.771.461.47
Dividend Payout Ratio (NP) (%)0.0079.7235.990.00169.64
Dividend Payout Ratio (CP) (%)0.0066.2231.040.00124.52
Earning Retention Ratio (%)0.0020.2864.010.00-69.64
Cash Earning Retention Ratio (%)0.0033.7868.960.00-24.52
Interest Coverage Ratio (X)0.001016.67255.3831.3438.36
Interest Coverage Ratio (Post Tax) (X)0.00586.33165.5416.6920.62
Enterprise Value (Cr.)442.60266.63205.37104.2282.56
EV / Net Operating Revenue (X)2.111.240.980.690.46
EV / EBITDA (X)12.718.746.195.204.78
MarketCap / Net Operating Revenue (X)2.321.441.170.860.55
Retention Ratios (%)0.0020.2764.000.00-69.64
Price / BV (X)3.692.441.991.190.99
Price / Net Operating Revenue (X)2.321.441.170.860.55
EarningsYield0.040.050.080.070.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ador Fontech Ltd as of December 27, 2024 is: 158.30

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 27, 2024, Ador Fontech Ltd is Undervalued by 11.48% compared to the current share price 142.00

Intrinsic Value of Ador Fontech Ltd as of December 27, 2024 is: 182.19

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 27, 2024, Ador Fontech Ltd is Undervalued by 28.30% compared to the current share price 142.00

Last 5 Year EPS CAGR: 15.09%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.58%, which is a positive sign.
  2. The company has higher reserves (106.00 cr) compared to borrowings (0.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (168.15 cr) and profit (23.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 89.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 97.08, 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 Ador Fontech Ltd:
    1. Net Profit Margin: 11.29%
      • 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: 23.8% (Industry Average ROCE: 20.61%)
      • 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%: 17.95% (Industry Average ROE: 61.73%)
      • 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): 0
      • 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: 3.96
      • 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: 19.4 (Industry average Stock P/E: 131.67)
      • 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

Ador Fontech Ltd. is a Public Limited Listed company incorporated on 22/08/1974 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L31909KA1974PLC020010 and registration number is 020010. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 204.74 Cr. and Equity Capital is Rs. 7.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Welding EquipmentsBelview, 7 Haudin Road, Bengaluru Karnataka 560042investorservice@adorfon.com
http://www.adorfon.com
Management
NamePosition Held
Mr. A T MalkaniChairman
Mr. H P LedwaniManaging Director & CEO
Mrs. N Malkani NagpalPromoter Director
Mr. Rafique MalikIndependent Director
Mr. Santosh JanakiramIndependent Director
Mr. N S MarshallIndependent Director

FAQ

What is the latest intrinsic value of Ador Fontech Ltd?

The latest intrinsic value of Ador Fontech Ltd as on 16 December 2024 is ₹158.30, which is 11.48% higher than the current market price of ₹142.00. The stock has a market capitalization of 499 Cr. and recorded a high/low of ₹170/112 during the current fiscal year 2024-2025. As of Mar 2024, the company has reserves of ₹150 Cr and total liabilities of ₹179 Cr.

What is the Market Cap of Ador Fontech Ltd?

The Market Cap of Ador Fontech Ltd is 499 Cr..

What is the current Stock Price of Ador Fontech Ltd as on 16 December 2024?

The current stock price of Ador Fontech Ltd as on 16 December 2024 is 142.

What is the High / Low of Ador Fontech Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Ador Fontech Ltd stocks is 170/112.

What is the Stock P/E of Ador Fontech Ltd?

The Stock P/E of Ador Fontech Ltd is 19.4.

What is the Book Value of Ador Fontech Ltd?

The Book Value of Ador Fontech Ltd is 45.0.

What is the Dividend Yield of Ador Fontech Ltd?

The Dividend Yield of Ador Fontech Ltd is 4.21 %.

What is the ROCE of Ador Fontech Ltd?

The ROCE of Ador Fontech Ltd is 22.9 %.

What is the ROE of Ador Fontech Ltd?

The ROE of Ador Fontech Ltd is 17.4 %.

What is the Face Value of Ador Fontech Ltd?

The Face Value of Ador Fontech 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 Ador Fontech 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