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Monday, June 28, 2010

ADC India: Long term Value Buy!

ADC India:
CMP: 124.00
Market Cap: 54Cr
Debt March 2010: 0.47Cr
Reserves March 2010 (6 months): 51.07Cr
Sales TTM March 2010: 71.24Cr
Cash & Bank balances (6 months): 24.16Cr
Profit From Operations March 2010 (6 months): -ve 0.09Cr
Net Profit March 2010 (6 months): +ve0.91Cr

As per ADC india Website: http://www.adckrone.com/in/
(Corrected information posted about ADC India on June 30,2009)
ADC is a world leader in providing global network infrastructure products and services that support our customers’ migration to next-generation networks. ADC plays a crucial role in enabling its customers to deliver dynamic video, data, voice and wireless services that are increasingly essential to Telcos, Enterprises & Infrastructure providers.

The need for ubiquitous access, scalable bandwidth and robust, reliable connectivity is no different for a carrier, cable company or enterprise. All depend on ADC's network infrastructure expertise to help them design and deploy high-speed networks, wired and wireless, offering dynamic video, data, and voice to businesses and consumers.

ADC's industry-leading portfolio of network infrastructure solutions helps our customers to provide advanced, differentiating services to meet their own customers' unrelenting demand for bandwidth along with their employee's need for instant, reliable access to business critical information.

Customers in India: BSNL, MTNL, Ericsson , Nokia Siemens, Bharti Televentures(AirTel), Reliance Infocom, Tata Teleservices, HFCL. Infotel, Lucent, TCS, Barclays, Standard Chartered Bank, Crisil, Common Wealth Games, Alcatel, Cognizant, EMC, Vikas Soudha, Intellinet Global Services, Hexaware, Volkswagen, Vodafone, ITPL, Shell. Indian PMO, Indian Parliament Library, I2 Technologies, Verizon and more

Conclusion: ADC india is definitely not cheap.. but considering that parent ADC is a world leader in next generation networks and ADC Krone is an integral part of ADC. we have a winner in hand. Also considering the fact that ADC has a market cap of 54Cr and 24.16Cr of cash in hand right now ADC India is actually selling for 30Cr. This is a zero debt company and high quality provider of network solutions to telecom companies. Accumulate for long term.


amitjd said...

I have also seen this stock before but haven't entered it yet. Another interesting thing is that lately the Foreign promoter has started increasing its stake and increased the stake from 62.69% in Dec 2009 to 64.26% in March 2010.

What'sUp Prahalad said...


Yes that is true.. foreign promoters are increasing their holding..
Good of you to do some deep dive providing more value to blog users.
Another thing which will really help is to look at the promoter website (ADC worldwide) which will provide you a better prespective about ADC india capabilities keeping in mind the 3G rollout in India.

=happy investing

Anonymous said...


Not to nitpick, it is not ADC Systems (which deals in Barcode, RFID etc...a smallish unlisted company), it is ADC India Communications who deal in Enterprise Networks & Communications Equipment. Earlier, it was called ADC Krone.


Nonetheless, ADC India appears to be very delicious:)


What'sUp Prahalad said...

Anonymous AM:

Thanks for being frank enough to point out the errors..

I was surprised why ADC India website was not reflecting the parent companies information (basically leaders in Network Infrastructure provider!!)

I have updated the information for ADC India.

=Happy Investing


amitjd said...

I read that Tyco Electronics is acquiring ADC. Is this ADC the parent company of ADC India Communications? If so, will this lead to an open offer in India? Was this reason for recent run up in the stock of ADC India from around 100 to 190?

What'sUp Prahalad said...


Value will always be respected.. and rewarded.

Yes ADC worldwide which is a well
established brand in global communication is a great buyout for Tyco.

I think we should see an open offer and ADC India shareholders will be well rewarded..

I had not thought about this but this is an unexpected plesant surprise for all of us.

=happy investing

arunsg said...

Not to speculate on the stock price, but its rather far fetched to think of ADC India as a leading provider of Next gen infrastructure. If you know what they make....its basically connectors, fibers etc. Infrastructure, yes, but not of the hi-tech type. And their only claim to have any wireless equipment has been an acquisition of a [former] East German company which made gear for their military and I am not sure how much they sold. Its based on 50's technology called frequency division multiplexing which is not used anywhere today in Modern communication - except dated military comms and even there, with a complete overhaul.