ADF Foods Limited (ADFFOODS) AI Stock Analysis

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ADF Foods Limited

(NSE:ADFFOODS)

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Rating:61Neutral

Price Target:INR 246.00▲(5.69% Upside)

Action:reiterated

Date:11/01/26

The score is primarily supported by solid underlying fundamentals—good FY2026 growth, healthy margins, and low leverage—but is meaningfully held back by weak cash generation (negative free cash flow and low operating cash flow vs earnings). Technically, the stock is in a downtrend (below major moving averages) despite oversold signals, and valuation (P/E ~28 with ~0.52% yield) does not provide a strong margin of safety.

Positive Factors

Revenue GrowthThe renewed revenue acceleration indicates stronger demand and improving commercial momentum across ADF Foods' branded packaged-food portfolio. If sustained, higher sales can improve operating scale, support distribution investment, and strengthen the company's position in domestic and international ethnic-food markets.

Negative Factors

Weak Cash ConversionWeak conversion of accounting earnings into cash is a material quality concern because it can limit internally funded growth and increase reliance on working-capital management or external financing. Negative free cash flow also suggests that current investment or operating needs are absorbing the benefits of reported profitability.

ADF Foods Limited (ADFFOODS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 25.86B
Dividend Yield: 0.52%
Average Volume (3M): 6,784
Price to Earnings (P/E): 28.1
Beta (1Y): 1.13
Revenue Growth: 19.44%
EPS Growth: 31.16%
Country: India
Employees: 354
Sector: General
Sector Strength: 55
Industry: Packaged Foods

ADF Foods Limited Business Overview & Revenue Model

Company Description

Based in Mumbai, India, ADF Foods Limited is a prominent producer and distributor of a diverse array of food products. Established in 1932, the company's operations are strategically divided into two core segments: Process and Preserved Food, and Age...

How the Company Makes Money

ADF Foods makes money primarily by selling branded packaged food products to customers through domestic distribution and export channels. Its revenue model is based on (1) branded product sales across multiple categories (e.g., ready-to-eat/ready-to-...

ADF Foods Limited Financial Statement Overview

Summary

Strong revenue growth in FY2026 (+13.1% YoY) and healthy profitability (gross margin ~49.7%, net margin ~13.2%) are supported by a conservative balance sheet (debt-to-equity ~0.10, mid-teens ROE). The key offset is weak cash conversion: FY2026 operating cash flow (585M) covers only about half of net income and free cash flow is negative (-243M), raising quality-of-earnings and reinvestment-cycle risk.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.18B	6.83B	5.90B	5.01B	4.44B	4.06B
Gross Profit	3.59B	3.39B	3.41B	2.56B	2.30B	1.96B
EBITDA	1.48B	1.44B	983.62M	1.16B	918.51M	760.26M
Net Income	919.64M	899.24M	692.56M	752.86M	560.99M	480.98M
Balance Sheet
Total Assets	0	7.55B	6.28B	5.56B	5.25B	4.71B
Cash, Cash Equivalents and Short-Term Investments	856.85M	856.85M	1.26B	1.43B	1.42B	1.14B
Total Debt	0	550.68M	592.34M	558.60M	552.46M	699.20M
Total Liabilities	-5.72B	1.83B	1.36B	1.14B	1.03B	1.25B
Stockholders Equity	5.72B	5.72B	4.93B	4.41B	4.19B	3.43B
Cash Flow
Free Cash Flow	-180.48M	-242.80M	-38.23M	543.84M	237.92M	-4.98M
Operating Cash Flow	319.27M	585.10M	374.16M	698.41M	505.23M	340.93M
Investing Cash Flow	104.93M	-127.40M	-396.20M	163.85M	-628.69M	-537.94M
Financing Cash Flow	-159.21M	-233.73M	-210.56M	-634.14M	-48.18M	329.95M

ADF Foods Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price232.75

Price Trends

50DMA268.02Negative

100DMA280.23Negative

200DMA249.29Negative

Market Momentum

MACD-10.14Positive

RSI29.41Positive

STOCH17.86Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ADFFOODS, the sentiment is Negative. The current price of 232.75 is below the 20-day moving average (MA) of 265.78, below the 50-day MA of 268.02, and below the 200-day MA of 249.29, indicating a bearish trend. The MACD of -10.14 indicates Positive momentum. The RSI at 29.41 is Positive, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ADFFOODS.

ADF Foods Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ADFFOODS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TASTYBITE	70Outperform	INR 24.95B	69.47	―	0.10%	-1.17%	-4.11%
IN:BECTORFOOD	63Neutral	INR 55.67B	37.52	―	0.72%	11.11%	6.30%
IN:BIKAJI	63Neutral	INR 113.27B	43.78	―	0.28%	13.81%	27.77%
IN:ADFFOODS	61Neutral	INR 25.57B	28.12	―	0.52%	19.44%	31.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DIAMONDYD	55Neutral	INR 24.86B	218.13	―	0.05%	6.42%	―
IN:GOPAL	53Neutral	INR 30.24B	35.81	―	0.41%	12.01%	―

* General Sector Average

Performance Comparison

IN:ADFFOODS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ADFFOODS	ADF Foods Limited	232.75	13.33	6.07%
IN:BECTORFOOD	Mrs. Bector's Food Specialities Ltd.	181.35	-82.53	-31.28%
IN:BIKAJI	Bikaji Foods International Ltd.	451.75	-272.93	-37.66%
IN:DIAMONDYD	Prataap Snacks Ltd.	1038.75	-62.25	-5.65%
IN:GOPAL	Gopal Snacks Limited	242.55	-110.25	-31.25%
IN:TASTYBITE	Tasty Bite Eatables Ltd	9722.25	796.37	8.92%

ADF Foods Limited Corporate Events

ADF Foods Board to Weigh Q2 Results and Interim Dividend on 5 November

Oct 31, 2026

ADF Foods Limited has notified the stock exchanges that its board will meet on 5 November 2026 to consider unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. At the same meeting, directors w...

ADF Foods Closes Trading Window Ahead of Key Disclosures

Sep 26, 2026

ADF Foods Limited operates in the packaged foods industry, manufacturing and marketing a range of processed food products for domestic and international markets. The company is listed on the National Stock Exchange of India and BSE, where its equity...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 01, 2026

ADF Foods Limited AI Stock Analysis

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