ADF Foods Reports Mixed Performance in Q1 FY25, Investors Advised to Hold

ADF Foods, a smallcap FMCG company, recently declared its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, ADF Foods has seen a flat performance in the quarter, with a score of 1 compared to 19 in the previous 3 months. However, there are some positive aspects to the company’s performance. ADF Foods has shown a consistent growth in its operating cash flow, with the highest amount of Rs 69.84 crore in the last three years.

On the other hand, there are some areas of concern for ADF Foods. The company’s profit before tax (PBT) has fallen by 32.9% compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) has also decreased by 20.1% compared to the average of the previous four quarters. The net sales have also seen a decline of 6.5% compared to the average of the previous four quarters. The operating profit (PBDIT) has also been at its lowest in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also decreased to its lowest at 16.12%, showing a decline in the company’s efficiency.

One positive aspect to note is the increase in non-operating income, which has been the highest in the last five quarters. However, it is important to consider that this income may not be sustainable in the long run.

Overall, ADF Foods has shown a mixed performance in the quarter ending June 2024. Investors are advised to hold their positions and monitor the company’s performance in the coming quarters.