Market Capitalisation - 878 Crore
P/E - 31.7
Some important financial highlights I found interesting while doing the research of this company:
- Healthy ROCE at 45.2%
- Healthy working capital cycle of 40 days (average for past several years)
- Cashflow positive for past several years
- Healthy cash balance in the books amounting to Rs.44.77 Cr
- Zero Debt for past 10 years
- Promoter holding at 72.02 % ( No change in the same for past several years)
- Statutory Auditor - S R B C & Co LLP
- Sales Growth Last 3 and 5 Years are - 44% & 15.86% CAGR
Business Overview:
Incorporated in 1988, ADC India Communications Ltd manufactures and trades Telecommunications & IT Networking products
ADCICL offers connectivity solutions to suit individual enterprise and telecom service provider requirements. It provides copper and fiber physical connectivity in telecommunications and data networking solutions including structured cabling.
Business Segments:
a) Telecommunication:
Manufacturing and trading of Telecom products
b) IT - Networking: (Major contributor to revenue)
Manufacturing and trading of IT-Networking products
Products & Services:
a) Enterprise Network Solution:
ADC’s Structured Cabling System
is an end-to-end, integrated portfolio
of high-performance copper and fibre
cable, connectivity and cable management solutions.
b) Carrier Network Solution:
ADC offers end-to-end network infrastructure solutions for central office (CO), Data centre, outside plant (OSP) and wireless deployments.
c) Broadcast & Entertainment Solution:
Company provides fiber and copper connectivity solutions for video, audio, and data networks and leads the broadcast industry in fiber-based 3G and HD network solutions.
d) Wireless Products:
Company provides in-building and outdoor wireless systems which enable mobile coverage in places where service providers and enterprises have difficulty delivering wireless voice and data services.
Revenue Breakup - FY23:
Sale of Finished Goods ~5%,
Sale of Traded Goods ~95%
Product Wise Sales Split - FY23: Cables ~60%, Connector and patch cords ~24%, Telecom products/connectors, accessories ~3%, Patch cords ~1%, Other Products ~12%
Geographical Revenue Split - FY23:
Exports ~1%, Domestic ~99%
Client Concentration Risk:
In FY23, top 2 customers contributed 84%+ of their revenues