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  4. /ADF Foods Ltd
MomentumDeep Value

ADF Foods Ltd: Why Is It Outperforming Nifty 500?

Active
RS +21.8%Weak

In Week of May 10, 2026, ADF Foods Ltd (FMCG - Contract Mfg) is outperforming Nifty 500 with +21.8% relative strength. Fundamentals: Weak.

ADF Foods Ltd Key Facts

PE Ratio
35.2x
Market Cap
₹3,003 Cr
PAT Growth YoY
+16%
Revenue Growth YoY
+30%
OPM
19.0%
RS vs Nifty 500
+21.8%
Strong Opportunity

What's Happening

💎PE falling while earnings hold — value emerging
💪Debt reduced 80% YoY — balance sheet strengthening
🌐FII stake increased 1.8% this quarter
🏛️DII accumulation — stake up 14.3%
💰Trading 17% above estimated fair value

Key Risks

1. Regulatory
MEDIUM
2. Fx
LOW
3. Geopolitical
MEDIUM

Key Numbers

PAT Growth YoY
+16%
Inflection Up
Revenue YoY
+30%
Stable
Operating Margin
19.0%
+100 bps YoY
PE Ratio
35.2
Current Price
₹273
Dividend Yield
0.44%
Fundamental Score
35/100
Weak
3Y PAT CAGR
+12%
Market Cap
3.0K Cr
Valuation
Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

What Are the Key Risks for ADF Foods Ltd?

Earnings deceleration risks from management commentary

Regulatory

MEDIUM

Trigger: Regulatory labour law change triggered a material one-time cost; no ongoing impact guided but demonstrates exposure to domestic policy changes

Monitor: regulatory

Fx

LOW

Trigger: Net exporter with no hedging; rupee strengthening will dilute forex gains that boosted Q2; margin guidance in high teens absorbs this

Monitor: fx

Geopolitical

MEDIUM

Trigger: US is the largest export market; tariffs created pricing pressure at retail level; resolution creates incremental upside but lag in distributor inventory means benefit materializes with delay

Monitor: geopolitical

Commodity

LOW

Trigger: Not explained on call

Monitor: commodity

Logistics

LOW

Trigger: Not explained on call

Monitor: logistics

What Is ADF Foods Ltd's Management Saying?

Key quotes from recent conference calls

“This PAT excludes exceptional items of INR6.8 crores, which is a onetime charge for changes in Indian Labour Code [Risk (regulatory): MEDIUM]”
“Q3 has very negligible amount of forex in our revenues. What we anticipate is the dollar with the rupee now strengthening for the coming quarters, we would not be having too much of a gain in terms of our forex [Risk (fx): LOW]”
“despite prevailing tariff challenges, our U.S. business continues to show substantial progress, benefiting from the enhancement of our sales force and strategic distributor level changes [Risk (geopolitical): MEDIUM]”
“Not Given [Risk (commodity): LOW]”

How Fast Is ADF Foods Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+30%+12%Stable
PAT (Net Profit)+16%+12%Inflection Up
OPM19.0%+100 bpsVolatile

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.

Other Top FMCG - Contract Mfg Stocks Beating Nifty 500

Varun Beverages Ltd
Strong
+17.3%
Hindustan Foods Ltd
Average • 7w streak
+13.3%
← Back to FMCG - Contract MfgDashboard

Frequently Asked Questions: ADF Foods Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were ADF Foods Ltd's latest quarterly results?

ADF Foods Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: +15.8% (turning around (inflection up))
  • Revenue Growth YoY: +29.9%
  • Operating Margin: 19.0% (volatile)

Is ADF Foods Ltd's profit growing or declining?

ADF Foods Ltd's profit is growing with an turning around (inflection up) trend.

  • PAT Growth YoY: +15.8% (latest quarter)
  • PAT Growth QoQ: -15.4% (sequential)
  • 3-Year PAT CAGR: +12.1%
  • Trend: Turning around (inflection up) — consistent growth pattern

What is ADF Foods Ltd's revenue growth trend?

ADF Foods Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: +29.9%
  • Revenue Growth QoQ: +17.2% (sequential)
  • 3-Year Revenue CAGR: +11.9%

How is ADF Foods Ltd's operating margin trending?

ADF Foods Ltd's operating margin is volatile.

  • Current OPM: 19.0%
  • OPM Change YoY: +1.0% basis points
  • OPM Change QoQ: -3.0% basis points

What is ADF Foods Ltd's 3-year profit and revenue CAGR?

ADF Foods Ltd's long-term compounding rates

  • 3-Year Profit CAGR: +12.1%
  • 3-Year Revenue CAGR: +11.9%

Is ADF Foods Ltd's growth accelerating or decelerating?

ADF Foods Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.

  • YoY Acceleration: -14.2% bps
  • Sequential Acceleration: -65.4% bps

What is ADF Foods Ltd's trailing twelve month (TTM) performance?

ADF Foods Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹79 Cr
  • TTM PAT Growth: +1.3% YoY
  • TTM Revenue: ₹646 Cr
  • TTM Revenue Growth: +10.6% YoY
  • TTM Operating Margin: 18.8%

Is ADF Foods Ltd overvalued or undervalued?

ADF Foods Ltd appears overvalued based on our fair value analysis.

  • Valuation Signal: Overvalued
  • Current PE: 35.2x
  • Price-to-Book: 5.7x

What is ADF Foods Ltd's current PE ratio?

ADF Foods Ltd's current PE ratio is 35.2x.

  • Current PE: 35.2x
  • Market Cap: 3.0K Cr
  • Dividend Yield: 0.44%

How does ADF Foods Ltd's valuation compare to its history?

ADF Foods Ltd's current PE is 35.2x.

  • Current PE: 35.2x
  • Valuation Assessment: Overvalued

What is ADF Foods Ltd's price-to-book ratio?

ADF Foods Ltd's price-to-book ratio is 5.7x.

  • Price-to-Book (P/B): 5.7x
  • Book Value per Share: ₹48
  • Current Price: ₹273

Is ADF Foods Ltd a fundamentally strong company?

ADF Foods Ltd is rated Weak with a fundamental score of 34.63/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: +29.9% (10% weight)
  • PAT Growth YoY: +15.8% (10% weight)
  • PAT Growth QoQ: -15.4% (10% weight)
  • Margins stable (10% weight)

Is ADF Foods Ltd debt free?

ADF Foods Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹59 Cr

What is ADF Foods Ltd's return on equity (ROE) and ROCE?

ADF Foods Ltd's return ratios over recent years

  • FY2023: ROCE 17.0%
  • FY2024: ROCE 20.0%
  • FY2025: ROCE 17.0%

Is ADF Foods Ltd's cash flow positive?

ADF Foods Ltd's operating cash flow is positive (FY2025).

  • Cash from Operations (CFO): ₹37 Cr
  • Free Cash Flow (FCF): ₹-2 Cr
  • CFO/PAT Ratio: 54% (adequate)

What is ADF Foods Ltd's dividend yield?

ADF Foods Ltd's current dividend yield is 0.44%.

  • Dividend Yield: 0.44%
  • Current Price: ₹273

Who holds ADF Foods Ltd shares — promoters, FII, DII?

ADF Foods Ltd's shareholding pattern (Mar 2026)

  • Promoters: 36.1%
  • FII (Foreign): 11.6%
  • DII (Domestic): 23.2%
  • Public: 29.1%

Is promoter holding increasing or decreasing in ADF Foods Ltd?

ADF Foods Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 36.1% (Mar 2026)
  • Previous Quarter: 36.1% (Dec 2025)
  • Change: 0.00% (stable)

How long has ADF Foods Ltd been outperforming Nifty 500?

ADF Foods Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.

Is ADF Foods Ltd a new momentum entry or an established outperformer?

ADF Foods Ltd is an established outperformer with 3 weeks of consecutive Nifty 500 outperformance.

What are the key risks in ADF Foods Ltd?

ADF Foods Ltd has 5 key risks worth monitoring

  • [MEDIUM] Regulatory — Regulatory labour law change triggered a material one-time cost; no ongoing impact guided but demonstrates exposure to domestic policy changes
  • [LOW] Fx — Net exporter with no hedging; rupee strengthening will dilute forex gains that boosted Q2; margin guidance in high teens absorbs this
  • [MEDIUM] Geopolitical — US is the largest export market; tariffs created pricing pressure at retail level; resolution creates incremental upside but lag in distributor inventory means benefit materializes with delay
  • [LOW] Commodity — Not Given

What did ADF Foods Ltd's management say in the latest earnings call?

In Q3 FY26, ADF Foods Ltd's management highlighted

  • "This PAT excludes exceptional items of INR6.8 crores, which is a onetime charge for changes in Indian Labour Code [Risk (regulatory): MEDIUM]"
  • "Q3 has very negligible amount of forex in our revenues. What we anticipate is the dollar with the rupee now strengthening for the coming quarters, we ..."
  • "despite prevailing tariff challenges, our U.S. business continues to show substantial progress, benefiting from the enhancement of our sales force and..."

Is ADF Foods Ltd worth studying for long term investment?

Based on quantitative research signals, here is why ADF Foods Ltd may be worth studying

  • Earnings growing at +15.8% YoY
  • Cash flow is positive — CFO ₹37 Cr

What is the investment thesis for ADF Foods Ltd?

ADF Foods Ltd investment thesis summary:

Research Signals (Bull Case)

  • Revenue growing at +29.9% YoY

Risk Factors (Bear Case)

  • Appears overvalued
  • Key risk: Regulatory

What is the future outlook for ADF Foods Ltd?

ADF Foods Ltd's forward outlook based on current data signals

  • Earnings Trend: turning around (inflection up)
  • Revenue Trend: stable
  • Margin Trend: volatile
  • Valuation: Overvalued
  • Key Risk: Regulatory

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.