ADC India Communications Faces Evaluation Downgrade Amid Mixed Financial Performance and High Valuation Concerns

Jun 26 2025 08:10 AM IST
share
Share Via
ADC India Communications has experienced a recent adjustment in its quality grade, reflecting a shift in its financial performance. Despite strong historical sales and EBIT growth, recent profitability declines and high valuation metrics have contributed to a more cautious outlook on the company's market position.
ADC India Communications, operating in the Telecom Equipment and Accessories sector, has recently undergone an evaluation adjustment that reflects a shift in its quality grade from good to average. This change is attributed to various underlying financial metrics that indicate a mixed performance landscape.

The company has demonstrated notable sales growth over the past five years at 19.08%, alongside a significant EBIT growth of 49.49%. However, the latest quarter has shown a decline in profitability, with a reported PAT of Rs 2.95 crore, marking a substantial drop of 58.5% compared to the previous four-quarter average. The operating profit to net sales ratio has also reached a low of 6.58%.

In terms of valuation, ADC India is currently classified as expensive, with a Price to Earnings (PE) ratio of 23.78 and a Price to Book Value of 8.00. Despite a high dividend yield of 4.35%, the company faces challenges, including a high percentage of pledged shares at 65%, which may exert additional pressure in adverse market conditions.

Overall, while ADC India Communications has shown strong historical growth, recent financial results and valuation metrics have prompted a revision in its evaluation score, reflecting a more cautious outlook on its market position.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News