1. At a Glance
ADF Foods exports desi nostalgia in jars—pickles, pastes, chutneys, and frozen delights—across 73+ countries. Yet behind the global shelves lies a stock that’s been spicy one year and soggy the next. Time to taste-test the fundamentals.
2. Introduction with Hook
Imagine your grandmother’s pickle recipe scaled into a ₹3,000 crore FMCG empire shipping to the UK, US, and UAE—now slap on some corporate drama, factory closures, and margin squeezes. That’s ADF Foods for you.
- Market Cap: ₹3,009 Cr
- FY25 Sales: ₹590 Cr
- FY25 Net Profit: ₹69 Cr
It’s a small-cap spice cannon that wants to be the next Nestlé… but with garlic breath.
3. Business Model (WTF Do They Even Do?)
ADF manufactures and exports Indian pickles, ready-to-eat meals, frozen foods, sauces, and condiments under 8 brands and 400+ SKUs.
Key Brands:
- Ashoka, Soul, PJ’s, Nate’s, Aeroplane
Export Focus:
- 90% of revenue comes from US, UK, Europe, Australia, and Gulf.
- Operates through ADF Foods UK Ltd and ADF Holdings USA Ltd.
Recent Moves:
- Acquired full stake in Vibrant Foods (NRI nostalgia FTW)
- Selling stake in Telluric Foods (cue divestment chakkar)
ADF isn’t just selling food—it’s exporting Indian culture in sealed jars.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY21 | 370 | 50 | 18% | 5.00 |
| FY22 | 421 | 49 | 16% | 4.59 |
| FY23 | 450 | 56 | 18% | 5.10 |
| FY24 | 520 | 74 | 20% | 6.85 |
| FY25 | 590 | 69 | 17% | 6.30 |
Growth Story:
- 5Y Revenue CAGR: ~16%
- 5Y PAT CAGR: ~10%
- 5Y ROE: ~16%
Sales growth is solid, margins a bit bumpy, and profit consistency is okayish—like a thali where dal is always dependable, but sabzi needs salt.
5. Valuation
Current P/E: 43.4x. Expensive for a small-cap pickle-maker?
Valuation Band (based on FY26 estimates):
- Conservative FV (20x EPS of ₹7.2): ₹144
- Optimistic FV (40x EPS of ₹7.2): ₹288
- PEG adjusted FV (growth @12%): ₹210–₹250
Verdict: It’s in the FMCG rerating corridor but not in the Britannia express lane yet.
6. What’s Cooking – News, Triggers, Drama
- Closures: GPCB shut two ADF plants in Gujarat for pollution—major red flag.
- Divestment: Offloaded stake in Telluric Foods in Jan 2024.
- Acquisition: Took 100% control of Vibrant Foods (UK).
- Resignation: Devang Gandhi (COO) quit. Management musical chairs?
- Investments: Rs 9 Cr infusion planned for global brand-building in FY26.
Cue spicy headlines… and investors nervously checking compliance sections.
7. Balance Sheet
| Year | Equity + Reserves (₹ Cr) | Debt (₹ Cr) | Total Assets (₹ Cr) |
|---|---|---|---|
| FY21 | 273 | 1 | 324 |
| FY22 | 343 | 70 | 468 |
| FY23 | 419 | 55 | 520 |
| FY24 | 441 | 56 | 550 |
| FY25 | 492 | 17 | 628 |
Key Points:
- Near-zero debt now—deleveraging done right.
- Equity base expanding steadily.
- ₹628 Cr in total assets—lean but growing.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | 51 | -60 | -5 | -14 |
| FY24 | 70 | +13 | -63 | +20 |
| FY25 | 37 | -40 | -21 | -23 |
Cash View:
- Operating cash flows are positive but patchy.
- Investing cashflows volatile—acquisitions galore.
- Free Cash Flow is there but not drool-worthy yet.
9. Ratios – Sexy or Stressy?
| Metric | FY25 | Notes |
|---|---|---|
| ROE | 14.8% | Decent for small-cap FMCG |
| ROCE | 18.7% | Above average |
| OPM | 17% | Improving after dip |
| EPS | ₹6.30 | Needs growth kicker |
| Inventory Days | 132 | Rising again—watch out |
| Debtor Days | 73 | Stable-ish |
| P/E | 43.4x | Pricey side dish |
Ratio salad says—good fundamentals, but market has priced in dessert too.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Op Profit (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|
| FY21 | 370 | 68 | 50 |
| FY22 | 421 | 67 | 49 |
| FY23 | 450 | 81 | 56 |
| FY24 | 520 | 105 | 74 |
| FY25 | 590 | 98 | 69 |
Flat profits despite rising sales = margins compressed in FY25.
11. Peer Comparison
| Company | P/E | OPM % | ROE % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|
| Nestle India | 77x | 23.6% | 83% | 20,202 | 3,096 |
| Britannia | 62.9x | 17.7% | 53% | 17,943 | 2,196 |
| Bikaji Foods | 97.5x | 12.5% | 14.9% | 2,622 | 194 |
| Mrs. Bectors | 78.6x | 12.7% | 14.2% | 1,742 | 121 |
| ADF Foods | 43.4x | 16.7% | 14.8% | 590 | 69 |
Takeaway:
Smallest in the gang, but decent metrics. Could get rerated… or get pickled.
12. Miscellaneous – Shareholding, Promoters
| Shareholding | Jun 2022 | Mar 2025 |
|---|---|---|
| Promoters | 36.6% | 36.14% |
| FIIs | 9.3% | 9.8% |
| DIIs | 6.0% | 23.6% |
| Public | 48.1% | 30.4% |
- DIIs are loving it (literally quadrupled stake).
- Public shareholding dropping = smart money entering?
13. EduInvesting Verdict™
ADF Foods is the globalised Indian masala story—reliable, compact, and increasingly institutional-backed. But beneath the FMCG glitter lies pollution issues, COO exits, and valuation stress.
It’s the kind of stock that makes you go: “Yeh chutney toh theek hai, par isme mirch kam hai.”
Metadata
– Written by EduInvesting Research Desk | 19 July 2025
– Tags: FMCG, SmallCap, ADF Foods, Pickle Stocks, Exporters, UK-USA Foods, Margin Watch, Institutional Accumulation, Multinational Masala Stocks
