With exports contributing to 95% of revenue, the ADF group competes not only with packaged food manufacturers in other Asian countries, but also with established domestic players such as ITC, MTR, Haldiram’s and Bikaji
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Can anyone see any impact of US tariffs on these companies? Avanti feeds down by 15%, but ADF hasn’t moved. ADF has 100% exposure towards US.
Management says not much impact as most of adf food products are low ticket items in the range of 7$-10$. You can refer q3 fy25 concall transcript.
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But that does impact the customer choice, with layoffs too
If my bottle was priced at $10 x 12 bottles = $120
Now that equation is reversed, not increasing my realisations and decreasing my volumes
₹1000cr FY27 guidance should be rolled over to FY28 is my sense
Will have to wait for next concall
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ADF foods has recently received notice to shutdown their facilities in Gujarat. This has happened with them in the past in 2012 in Maharashtra where they had to close their facility for 10days.
What could happen in the short term or long term, I understand that there is very little official news outside? Please provide your thoughts?
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Seems like alleged violation of board pollution control norms.
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In India closure will not happen. Money speaks in every desk. But one can understand ADF’s manfucaturing facilities cleanliness would 'be.
Q2FY26 - Good set of numbers. Lower RM, product mix and rupee depreciation helped margins and bottom line.
Some positives (from concall):
- Surat capex to be commissioned in H2 FY26 which can do revenue of 250Cr at peak capacity utilization
- Surat plant to take 3 - 4 quarters for ramp up
- Debt free balance sheet + 80+ Cr of cash
- Management holds guidance of doing 1000Cr in FY27
https://www.bseindia.com/xml-data/corpfiling/AttachHis/a98834f2-ae05-482a-b980-a71080a369cb.pdf
Disc: Invested in the recent fall.
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