ADF Foods Limited (ADFFOODS) AI Stock Analysis

• Market Cap: ₹24.72B
• Dividend Yield: 0.57%
• Average Volume (3M): 9.67K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 1.14
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹221.00 ▲(5.39% Upside)

The score is driven primarily by solid fundamentals (strong revenue growth, high margins, and a low-leverage balance sheet), partially offset by negative free cash flow and only modest cash conversion. Technical indicators are mixed with a negative MACD and price still below longer-term averages, while valuation is tempered by a mid-20s P/E and low dividend yield.

Positive Factors

High gross and EBIT margins

Sustained high gross margin (57.9%) and a materially improved EBIT margin (50.8%) indicate durable pricing power and operational leverage in core products. This provides structural profitability and funding capacity for reinvestment, building resilience versus input swings.

Very strong balance sheet and low leverage

A high equity ratio (78.4%) and very low debt-to-equity (0.12) give the company long-term financial flexibility, lower default risk, and capacity to fund growth or absorb shocks without aggressive refinancing—supporting stable strategic execution.

Diversified branded portfolio and channels

A multi-brand portfolio across ready-to-eat, frozen, snacks and exports plus retail and foodservice channels reduces concentration risk, supports steady demand, and allows the company to capture higher-margin value-added segments over time.

Negative Factors

Negative free cash flow in 2025

Negative free cash flow driven by higher capex erodes internal funding for growth and shareholder returns. Persistently negative FCF can force external financing or scaling back investment, reducing strategic optionality over the medium term.

Weak operating cash conversion

An OCF/net income ratio of 0.54 shows earnings are not efficiently turning into cash, raising working-capital and collection risks. Low cash conversion limits ability to service obligations, fund capex, and make durable reinvestments without external capital.

Profitability pressure: net margin & EPS trends

A falling net margin (11.8%) alongside negative EPS growth (-3.89%) suggests rising cost or pricing pressures that could persist. Continued margin erosion reduces retained earnings and weakens the company's ability to finance expansion or return capital over time.

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 Limited generates revenue primarily through the sale of its food products in both domestic and international markets. The company's revenue model is centered around product sales, with key revenue streams coming from its ready-to-eat meals, sauces, and snacks. ADF Foods has established significant distribution partnerships, both in India and abroad, which enhance its market reach and product availability. The company also benefits from export incentives and engages in strategic collaborations with retailers and distributors to maximize its sales channels. Additionally, the growing demand for convenience foods and ethnic cuisine globally contributes positively to its earnings.

ADF Foods Limited Financial Statement Overview

Summary

Strong income statement performance with robust revenue growth and a high gross margin (57.9%) plus improved EBIT margin (50.8%). Balance sheet is stable with high equity ratio (78.4%) and low leverage (debt-to-equity 0.12). Main offset is weaker cash quality: free cash flow turned negative in 2025 and operating cash flow conversion is modest (OCF/net income 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.03B	5.90B	5.01B	4.44B	4.06B	3.61B
Gross Profit	3.36B	3.41B	2.56B	2.30B	1.96B	1.46B
EBITDA	1.15B	983.62M	1.16B	918.51M	760.26M	737.63M
Net Income	701.14M	692.56M	752.86M	560.99M	480.98M	500.69M
Balance Sheet
Total Assets	0.00	6.28B	5.56B	5.25B	4.71B	3.27B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	1.43B	1.42B	1.14B	771.91M
Total Debt	0.00	592.34M	558.60M	552.46M	699.20M	6.16M
Total Liabilities	-4.93B	1.36B	1.14B	1.03B	1.25B	534.96M
Stockholders Equity	4.93B	4.93B	4.41B	4.19B	3.43B	2.74B
Cash Flow
Free Cash Flow	0.00	-38.23M	543.84M	237.92M	-4.98M	316.22M
Operating Cash Flow	0.00	374.16M	698.41M	505.23M	340.93M	355.50M
Investing Cash Flow	0.00	-396.20M	163.85M	-628.69M	-537.94M	-81.83M
Financing Cash Flow	0.00	-210.56M	-634.14M	-48.18M	329.95M	-73.99M

ADF Foods Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADFFOODS, the sentiment is Positive. The current price of 209.7 is above the 20-day moving average (MA) of 189.91, above the 50-day MA of 200.41, and below the 200-day MA of 227.16, indicating a neutral trend. The MACD of 1.14 indicates Negative momentum. The RSI at 68.72 is Neutral, neither overbought nor oversold. The STOCH value of 95.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹30.53B	40.52	―	―	-8.29%	4.70%
DOLLAR	69 Neutral	₹19.01B	17.98	―	0.82%	11.71%	14.14%
ADFFOODS	64 Neutral	₹24.72B	30.72	―	0.57%	6.31%	-3.89%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TASTYBITE	60 Neutral	₹18.62B	59.99	―	0.02%	17.13%	104.51%
BOROLTD	58 Neutral	₹31.65B	41.31	―	―	15.59%	20.12%

ADF Foods Limited Corporate Events

ADF Foods Opens Special Window for Share Transfer Requests

ADF Foods Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares, in compliance with SEBI regulations. This initiative is part of the company’s efforts to streamline share transfer processes and ensure compliance with regulatory requirements, potentially impacting shareholders by facilitating smoother transactions.