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ADC India Communications Ltd. Stock Analysis

Small Cap
Evaluated by 213 users | BSE: 523411 | NSE: KRONECOMM |
Telecommunication - Equipment
Krone Communications is a leading provider of innovative telecommunication connectivity solutions for communications infrastructures. It was incorporated in 1988, jointly by Krone AG Germany, Karnataka State Electronics Development Corporation (KEONICS) and M L Thukral and Associates, for...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Sep'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.58%0.6%-5.87%7.22%11.98%13.69%9.15%7.75%13.6%9.73%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 69.748.438.948.557.858.259.564.885.678.1
Y-o-Y Gr. Rt.--30.6%-19.6%24.6%19.2%0.7%2.3%8.8%32.2%-8.8%
Adjusted EPS (Rs.) 6.31.39-6.367.4310.8911.448.437.6212.548.26
Y-o-Y Gr. Rt.--77.9%-557.6%NA46.6%5.1%-26.3%-9.6%64.6%-34.1%
Book Value per Share (Rs.) 115.3231.34100.75105.0379.5887.9196.32100.2684.1487.34
Adjusted Net Profit 2.90.6-2.93.455.33.93.55.83.8
Net Op. Cash Flow (Rs. Cr.) 3.7-11-7.29.96.93.230.44.92.9
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
ADC India Communications Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.3%6.2%9.5%-8.8%
Adjusted EPS 3.1%-5.4%-0.7%-34.1%
Book Value per Share -31.9-3.23.8
Share Price 4.1% -9.6% -6.9% 1.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Sep'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 5.570.6-5.877.2211.813.669.157.7513.69.63
Operating Profit Margin (%) 5.530.73-5.6245.785.996.114.826.956.21
Net Profit Margin (%) 4.161.32-7.517.058.679.046.515.416.744.86
Debt to Equity 0000000000
Working Capital Days 170499276211154161270302211216
Cash Conversion Cycle 7023916485393122383030
Entity Percentage Holding
Promoters 72.02%
Institutions 0.01%
Non-Institutions 27.97%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of ADC India Communications Ltd.'s performance infers:

ADC India Communications Ltd. earnings have declined by -5.4%, whereas share price has depreciated -9.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of ADC India Communications Ltd. share prices over the last 10 years. Here is what we found out:

ADC India Communications Ltd. share price has depreciated 1.4% annually over the past ten years.

Krone Communications is a leading provider of innovative telecommunication connectivity solutions for communications infrastructures. It was incorporated in 1988, jointly by Krone AG Germany, Karnataka State Electronics Development Corporation (KEONICS) and M L Thukral and Associates, for manufacture of telephone connectors including black panel connectors and allied products for telecommunications cable network and industrial cabling systems. Krone Communications (KCL), is a 51% subsidiary

Krone Communications is a leading provider of innovative telecommunication connectivity solutions for communications infrastructures. It was incorporated in 1988, jointly by Krone AG Germany, Karnataka State Electronics Development Corporation (KEONICS) and M L Thukral and Associates, for manufacture of telephone connectors including black panel connectors and allied products for telecommunications cable network and industrial cabling systems. Krone Communications (KCL), is a 51% subsidiary of Germany-based Krone AG, and is engaged in manufacture of connection and distribution technology for copper and optical fibre networks as well as pertinent cables.

KCL has a range of products for public & private networks, wireless systems and Industrial wiring. It manufacturers telecom/ cabling-related equipment, including main distribution frame (MDF) tag block accessories, over-voltage protection magazine, modules etc, creating preconditions for all communication requirements. The parent company, Krone Gmbh was founded in 1928 and the Krone group is represented in over 140 countries (across five continents) by 30 subsidiaries and more than 80 sales partners. With the LSA-PLUS contact system, Krone has been setting global standards for decades in the field of telecommunications and it has received ISO 9002 certification. Krone`s partnership with US cable manufacturer Prestolite Wire completes the product range of the group and ensures the company`s world-wide market leadership as a systems supplier for telecommunications and data networks. Prestolite is a subsidiary of GenTek Inc and GenTek has taken over Krone A G Prestolite, a manufacturer of voice, data, copper and fibre-optic cables for the telecom industry and has been winning many infrastructure supply contracts.

The manufacturing facilities are set up in Peenya, Bangalore, with CNC moulding machines procured from Engal, Austria and injection moulding tools, jigs, fixtures etc, from Krone, AG Germany. The company has also set up a new Rs 5 crore manufacturing unit in Bangalore, which will serve as a base for global outsourcing. Krone Communications has also tied up with telecom major ITI for marketing its cabling and connection systems to address the large enterprise networking market.

KCL now has a strategic alliance with an Israeli company. Optical Access, which manufactures products based on free space optics (FSO) and optical based switching solutions. The first FSO link was successfully installed late last year for an enterprise. The management believes that these products would compliment the company`s existing solutions for the enterprise and carrier market. KCL offers a complete range of physical connectivity products for telecom & data networking i.e. voice & data communication applications.

Products:

• Main Distribution Frames (MDFs) used in telecom switches

• AccessNET suite of products, which address the requirement of telecom operators with physical connectivity solutions for copper & fibre

• PremisNET offers a suite of products and solutions that address the data networking market of cabling for corporates

• TrueNET a new generation suite of high-end cabling solutions that aims at maximising network throughout

Future plans:

During the coming years, the company would be positioning new products for BSNL and private telecom service providers and it is actively engaged in introduction of new products for the domestic and export market to maintain a leadership position in a market. The company would also be increasing its efforts in the PremiseNet segment by exploring OEM opportunities for new products and working with larger value added resellers (VAR). It has also embarked on a number of cost reduction initiatives both in operations and material inputs.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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