ADC India (523411)

FairStock Score: 33/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at ADC India through the lens I've used all my life: is this a wonderful business, and am I paying a sensible price? At ₹1,830.10, the market is capitalizing this company at ₹849 crore. That means I am paying 33.31 times earnings and 11.52 times book value, while book value is only ₹158.82 per share. For a telecom equipment firm, that is not a cheap ticket. The strong returns on capital—ROE of 25.26% and ROCE of 46.57%—certainly catch my eye, and the absence of debt is reassuring. The Piotroski F-score of 7/9 also suggests the financial plumbing is sound. But here is the problem: sales grew 14.41% while profit grew just 5.15%. In the latest quarter, ₹48 crore of sales yielded only ₹6 crore of net profit—a margin that, if annualized, roughly matches the trailing earnings behind the P/E. When profits lag sales like that, I smell margin pressure or rising costs. At a PEG of 3.41, the market is paying a huge premium for very modest earnings growth. Even the 2.26% dividend yield doesn't compensate for the risk. The 52-week range of ₹1,150.25 to ₹2,493.00 tells me this is a volatile, cyclical ride. The FairStock score calls it risky at 29/100. I value capital preservation above excitement. This may be a quality business, but at this price it offers no margin of safety. I would wait for a lower price or clear evidence that profit growth can catch up with sales growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer