ADF Foods Limited (ADFFOODS) AI Stock Analysis

• Market Cap: ₹19.95B
• Dividend Yield: 0.57%
• Average Volume (3M): 9.67K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.29
• Revenue Growth: 6.31%
• EPS Growth: -3.89%
• Country: IN
• Employees: 354
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.04
• Shares Outstanding: 109,863,594
• 10 Day Avg. Volume: 11,465
• 30 Day Avg. Volume: 9,673
• PEG Ratio: -4.81
• Price to Book (P/B): 5.43
• Price to Sales (P/S): 4.53
• P/FCF Ratio: -699.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 10.1
• Revenue Forecast (FY): ₹6.39B

• Rating: 64 Neutral
• Price Target: ₹194.00 ▼(-7.49% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by strong operating performance and a conservative balance sheet, but it is held back by negative free cash flow and a relatively high P/E with a low dividend yield. Technical signals are neutral-to-mixed, adding limited support.

Positive Factors

High gross and EBIT margins

Sustained high gross and EBIT margins indicate durable cost control and operational efficiency across manufacturing and product lines. These margins provide a structural buffer against input-price swings, enabling reinvestment in brands and capacity and supporting long-term profitability.

Conservative balance sheet and low leverage

A strong equity base and minimal leverage reduce financial risk and provide flexibility for capex, international expansion, or weathering commodity cycles. Low debt lowers default risk and interest burden, supporting long-term stability and strategic optionality.

Broad product portfolio and multi-channel distribution

A diversified product mix and presence in retail, foodservice and export markets spreads revenue risk and supports steady demand. This structural diversity aids resilience to single-market shocks, enables cross-selling and scale advantages in manufacturing and sourcing over time.

Negative Factors

Negative free cash flow

Negative free cash flow driven by higher capex weakens the firm's ability to self-fund growth or return capital. If persistent, it may force reliance on external financing or constrain investments, reducing financial flexibility and raising long-term funding costs.

Weak cash conversion from earnings

Low conversion of profits into cash suggests working capital pressure or timing differences that may persist. Structural inefficiencies in receivables, inventory or payables increase liquidity risk, can necessitate higher working capital funding, and mask underlying earnings quality.

Net margin pressure and cost exposures

A decline in net margin despite high gross margins points to rising operating or non-operating costs. Combined with sensitivity to agricultural input prices and export FX (per company model), this structural exposure can compress long-run profitability if cost pass-through is limited.

ADF Foods Limited Business Overview & Revenue Model

Company Description

ADF Foods Limited produces and sells various food products in India. It operates in two segments, Process and Preserved Food, and Agency Distribution Business. The company offers a range of products, including frozen snacks, breads, vegetables, ready-to-eat foods, meal accompaniments, condiment pastes, cooking sauces, spices, and milk drinks, as well as mango pulps and mango slices, papads, ready-to-cook foods, ready to eat burritos, frozen foods, pickles, chutneys, cooking pastes, flavored milk, and baked snacks. It also distributes tea and coffee products, soups, and other food products. The company offers its products under the Ashoka, Truly Indian, Camel, Aeroplane, ADF Soul, Khansaama, Nate's, and PJ's Organics brands. It exports its products in North America, Europe, the Middle East, Asia-Pacific, and the United Kingdom. ADF Foods Limited was founded in 1932 and is based in Mumbai, India.

How the Company Makes Money

ADF Foods makes money primarily by selling branded packaged food products manufactured in its facilities to customers in domestic and export markets. Revenue is generated through (1) branded consumer product sales via distributors and retail channels (e.g., supermarkets and ethnic grocery) where ADF sells inventory to channel partners who then sell to end consumers; (2) exports to overseas importers/distributors and retailers in markets with demand for Indian/ethnic foods, where international sales volumes and realized prices are influenced by mix (product category/brand), freight and duties, and currency movements; and (3) foodservice/Institutional sales where applicable (selling larger packs or tailored products to restaurants, caterers, or institutional buyers). Earnings are supported by capturing margin between product selling prices and costs of raw materials, packaging, manufacturing, logistics, and trade/marketing spends. Key factors affecting revenue and profitability typically include brand strength and distribution reach, product mix (higher value-added items vs. commodity-like products), input cost trends (agricultural commodities, edible oils, spices, packaging), export demand and compliance requirements, and foreign-exchange rates on export receipts. Specific details on major customer concentrations or named strategic partnerships are null.

ADF Foods Limited Financial Statement Overview

Summary

Strong revenue growth and healthy profitability (57.9% gross margin; 50.8% EBIT margin) supported by a solid, low-leverage balance sheet (78.4% equity ratio; 0.12 debt-to-equity). The main offset is weaker cash generation, with free cash flow turning negative and a modest operating cash flow to net income ratio (0.54).

Income Statement

ADF Foods Limited has shown robust revenue growth over the years, with a substantial increase from 2024 to 2025. The company maintains a healthy gross profit margin of 57.9% in 2025, indicating efficient cost management. However, the net profit margin has decreased slightly to 11.8% in 2025, suggesting increased expenses or other cost factors affecting net income. The EBIT margin has improved significantly to 50.8%, reflecting strong operational efficiency.

Balance Sheet

The balance sheet of ADF Foods Limited exhibits a strong equity position with an equity ratio of 78.4% in 2025, demonstrating financial stability. The debt-to-equity ratio remains low at 0.12, indicating prudent leverage management. Return on equity is at a reasonable level of 14.1%, showing effective use of shareholder funds, although it has slightly decreased compared to the previous year.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which turned negative in 2025, primarily due to increased capital expenditures. The operating cash flow to net income ratio stands at 0.54, highlighting some inefficiencies in converting income into cash flow. The decline in free cash flow growth rate is concerning, suggesting the need for improved cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.04B	5.90B	5.01B	4.44B	4.06B	3.61B
Gross Profit	3.39B	3.41B	2.56B	2.30B	1.96B	1.46B
EBITDA	1.25B	983.62M	1.16B	918.51M	760.26M	737.63M
Net Income	768.35M	692.56M	752.86M	560.99M	480.98M	500.69M
Balance Sheet
Total Assets	6.77B	6.28B	5.56B	5.25B	4.71B	3.27B
Cash, Cash Equivalents and Short-Term Investments	975.26M	1.26B	1.43B	1.42B	1.14B	771.91M
Total Debt	567.73M	592.34M	558.60M	552.46M	699.20M	6.16M
Total Liabilities	1.47B	1.36B	1.14B	1.03B	1.25B	534.96M
Stockholders Equity	5.29B	4.93B	4.41B	4.19B	3.43B	2.74B
Cash Flow
Free Cash Flow	-180.48M	-38.23M	543.84M	237.92M	-4.98M	316.22M
Operating Cash Flow	319.27M	374.16M	698.41M	505.23M	340.93M	355.50M
Investing Cash Flow	104.93M	-396.20M	163.85M	-628.69M	-537.94M	-81.83M
Financing Cash Flow	-159.21M	-210.56M	-634.14M	-48.18M	329.95M	-73.99M

ADF Foods Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 209.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADFFOODS, the sentiment is Negative. The current price of 209.7 is above the 20-day moving average (MA) of 204.25, above the 50-day MA of 201.24, and below the 200-day MA of 225.21, indicating a bearish trend. The MACD of -6.66 indicates Positive momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 24.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ADFFOODS.

ADF Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMOVER	72 Outperform	₹28.51B	38.77	―	―	-8.29%	4.70%
ADFFOODS	64 Neutral	₹19.95B	24.99	―	0.57%	6.31%	-3.89%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BOROLTD	61 Neutral	₹27.29B	35.15	―	―	15.59%	20.12%
TASTYBITE	60 Neutral	₹17.73B	28.74	―	0.02%	17.13%	104.51%
DOLLAR	57 Neutral	₹13.99B	27.11	―	0.82%	11.71%	14.14%

ADF Foods Limited Corporate Events

ADF Foods to Engage Analysts and Investors at Investec India Conference 2026

ADF Foods Limited has notified the stock exchanges that its officials will participate in the Investec India Promoter & Founder Conference 2026, to be held in Mumbai on March 9, 2026, in physical mode. The interaction will be in a group meeting format with analysts and investors, aimed at facilitating engagement with the financial community, though the company has cautioned that the schedule may change due to exigencies for participants or the company.

This planned participation underscores ADF Foods’ ongoing efforts to maintain transparency and regular communication with market participants. Such conference interactions can enhance the company’s visibility among institutional investors and analysts, potentially influencing market perception and supporting its positioning within the listed Indian consumer and packaged foods sector.

ADF Foods’ Supply Chain Head Resigns; Company Says Operations Unaffected

ADF Foods Limited has announced the resignation of senior management executive Jeetendra Joshi, who served as General Manager – Supply Chain and was designated as Senior Management Personnel. His resignation is effective from the close of business on 28 February 2026, with the company stating that the move is driven by his decision to pursue new opportunities and that there are no other material reasons for his departure.

The company emphasized that its supply chain operations will continue to run smoothly and remain unaffected by this leadership change, signaling that it does not expect any disruption to its day-to-day logistics or customer servicing. The disclosure was made in compliance with SEBI’s Listing Regulations requirements, underscoring the firm’s effort to maintain transparency with shareholders and the market regarding key managerial changes.