Mehabe score: 6 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
ADF Foods is engaged in the Business of manufacture and selling of food products like pickles, chutneys, ready to eat items, paste and sauces, frozen foods, spices etc.
Main Points
Brand portfolio; 95% from exports #
Company is leading manufacturer and exporter of processed food. They have 7 flagship brands #: “Truly Indian” (spices), Ashoka (pickles, chutneys, snacks), SOUL (health-conscious segment in India and UK), “PJ’s Organic” (Mexican flavoured Burritos), Nate’s (vegan segment; meatless meatballs, roti, wraps), Aeroplane (premium brand for pickles, pastes & powders primarily in Middle East), CAMEL (pickled, cooking pastes and curry powders specifically catering to the Middle East).Site:ADFFOODSMain Symbol:ADFFOODS
Stock trades at 951.0, above its 50dma 923.58. It also trades above its 200dma 771.39. The stock remains bullish on techicals
The 52 week high is at 1094.70 and the 52week low is at 318.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 49.93% CAGR over last 5 years
Weakness
– Promoter holding is low: 31.42%
Competition
– The industry trades at a mean P/E of 50.9x. Tasty Bite Eat. trades at the industry’s max P/E of 119.75x. ADFFOODS trades at a P/E of 38.1x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. ADFFOODS has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 5.6%. The max 1- month return was given by KRBL: a return of 18.51 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 86.0 cr compared to Rs 74.0 cr for period ended Jun 2020, a rise of 16.2%
Operating Profits reported at Rs 12.0 cr for period ended Jun 2021 vis-vis 12.0 for period ended Jun 2020 .
Operating Margins contracted -226.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.56 compared to Rs 7.46 for previous quarter ended Mar 2021 and Rs 4.32 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 382.0 cr for period ended TTM vis-vis sales of Rs 369.0 cr for the period ended Mar 2021, a growth of 3.4%. The 3 year sales cagr stood at 18.3%.
Net Profit reported at Rs 53.0 cr for period ended TTM vis-vis sales of Rs 50.0 cr for the period ended Mar 2021, rising 5.7%.
Company recorded a healthy Net Profit CAGR of 28.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 36.0 cr for period ended Mar 2021 vis-vis Rs 26.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 188% on a 1 Year basis vis-vis a return of 57% over the last 3 Years. – The compounded sales growth on a TTM bassis is 35% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 10.0% vis-vis 10.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 56.93% vis-vis 56.93% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 49.93% CAGR over last 5 years – Promoter holding is low: 31.42%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 923.58 and is trading at 951.0, thus bullish price action wise.
