Is ADF Foods a good buy for the long term? - Ankush Mundra
ADF Foods Limited, a holding company, is engaged in the business of meal accompliments, canned food and ready-to-eat and frozen foods. The company mainly manufactures and exports food products, including pickles, chutneys, ready-to-eat items, pastes and sauces, frozen foods and spices. It offers products under various brands such as Ashoka, Soul, Truly Indian and Nate’s, among others.
On the financial front, ADF Food Limited posted a 4.92 per cent increase in its revenue to ₹40.16 crore in the first quarter of FY18 as compared to the same quarter in the previous fiscal. However the company’s PBIDT fell by 43.03 per cent to ₹3.97 crore in Q1FY18 from ₹6.96 crore in the first quarter of FY17. The company’s profit after tax rose 0.21 per cent to ₹4.27 crore in the first quarter of FY18 on a yearly basis.
On an annual basis, the company’s revenue rose 3.36 per cent to ₹159.13 crore in FY17 as compared to the previous fiscal. The company’s PBIDT fell 19.97 per cent to ₹21.76 crore in FY17 as against ₹27.19 crore in FY16. The profit after tax of the company declined 12.27 per cent to ₹12.37 crore in FY17 as against ₹14.10 crore in the previous fiscal. We recommend investor-readers to AVOID the stock for long term investment.