Why is ADC India Communications Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Healthy long term growth as Operating profit has grown by an annual rate 36.28%
3
Flat results in Mar 26
- PAT(Q) At Rs 3.51 cr has Fallen at -23.5% (vs previous 4Q average)
- ROCE(HY) Lowest at 28.40%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.46 times
4
Stock is technically in a Bullish range
- The technical trend has improved from Sideways on 11-May-26 and has generated 42.5% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
5
With ROE of 21.8, it has a Very Expensive valuation with a 12.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 117.39%, its profits have fallen by -22.7%
6
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you hold?
- Overall Portfolio exposure to ADC India should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ADC India for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
ADC India
117.39%
1.58
74.07%
Sensex
-5.14%
-0.39
13.26%
Quality key factors
Factor
Value
Sales Growth (5y)
27.29%
EBIT Growth (5y)
36.28%
EBIT to Interest (avg)
19.04
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.71
Sales to Capital Employed (avg)
2.52
Tax Ratio
23.15%
Dividend Payout Ratio
56.42%
Pledged Shares
0
Institutional Holding
0.15%
ROCE (avg)
99.07%
ROE (avg)
23.72%
Valuation Key Factors 
Factor
Value
P/E Ratio
58
Industry P/E
22
Price to Book Value
12.59
EV to EBIT
50.71
EV to EBITDA
49.92
EV to Capital Employed
40.63
EV to Sales
5.15
PEG Ratio
NA
Dividend Yield
0.21%
ROCE (Latest)
80.12%
ROE (Latest)
21.82%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
Technical Movement
5What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 61.34 cr
NET SALES(Q)
Highest at Rs 61.24 cr
-9What is not working for the Company
PAT(Q)
At Rs 3.51 cr has Fallen at -23.5% (vs previous 4Q average
ROCE(HY)
Lowest at 28.40%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.46 times
PBT LESS OI(Q)
At Rs 4.38 cr has Fallen at -7.2% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for ADC India
Net Sales - Quarterly
Highest at Rs 61.24 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 61.24 cr has Grown at 32.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 46.14 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 61.34 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for ADC India
Profit After Tax (PAT) - Quarterly
At Rs 3.51 cr has Fallen at -23.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 4.59 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4.38 cr has Fallen at -7.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.72 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 4.46 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio