Adon Agro Commodities Limited

Consumer Defensive — Packaged Foods · BSE

₹99.00−₹1.00 (−1.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Adon Agro Commodities Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Adon Agro Commodities Limited engages in the sourcing, importing, processing, packing, and distribution of dry fruits, nuts, seeds and berries.

IndustryPackaged Foods

SectorConsumer Defensive

Employees65

Annual revenue₹324 Cr

How does it make money?

Turns over ₹324 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹4.99 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.7%

Net margin7.1%

Revenue / employee₹4.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 60.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 91.7% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE60.2%

ROE91.7%

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +1351% while net margin moved +1759% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+1351%

Margin effect+1759%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.8x

Sector Median

51.7x

median of 4 sector peers

🟢Against its sector it trades 81% below the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

51.7x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.8x

P/B

4.32x

EV/EBITDA

7.3x

PEG

0.02

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.1% to 10.7% over 3 years.
Return on equity is rising
ROE has improved from 33.1% to 60.4%.
Return on capital is rising
ROCE has improved from 49.3% to 60.2%.
High return on capital employed
ROCE of 60.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 2474% against revenue growth of 1351% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 2474% against revenue up 1351% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 60.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 2.1% to 10.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 2474% against revenue up 1351%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 108% a year✓ 143.9% CAGR
Latest reported year was 214.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 57%✓ 60.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹228 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.8x

Cheap

Cheap against the generic band

P/B Ratio

4.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.07

Profitable

Profitable on a per-share basis

ROE

91.7%

Strong

Strong capital efficiency

ROCE

60.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

214.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

220.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹99

ROA

26.0%

Good

Assets are working hard

Operating Margin

10.1%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

95.1 / 90.5

Bullish alignment (short > long)

RSI (14)

64.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹73 Cr	₹103 Cr	₹324 Cr	+143.9%
EBITDA	₹0 Cr	₹3 Cr	₹10 Cr	₹35 Cr	+318.5%
EBITDA Margin	2.1%	3.9%	10.1%	10.7%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹7 Cr	₹23 Cr	+546.1%
EPS	₹0.04	₹0.78	₹3.14	—	—
ROE	33.1%	36.2%	59.3%	60.4%	—
ROCE	49.3%	51.4%	60.5%	60.2%	—
Total Debt	—	₹7 Cr	₹5 Cr	₹24 Cr	—
Free Cash Flow	₹1 Cr	-₹2 Cr	-₹3 Cr	-₹14 Cr	—

🟢 Revenue has grown at 143.9% a year over 3 years.

🟢 EBITDA has grown at 318.5% a year over 3 years.

🟢 EBITDA Margin has risen from 2.1% to 10.7% over 3 years (+8.5 pts).

🟢 PAT (Net Profit) has grown at 546.1% a year over 3 years.

🟢 ROE has risen from 33.1% to 60.4% over 3 years (+27.3 pts).

🟢 ROCE has risen from 49.3% to 60.2% over 3 years (+11.0 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹79 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.8%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

6 general

Adon Agro Commodities Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Adon Agro Commodities Ltd Share Price

Business Today, 16 Oct

Compare FISCHER INO. with

Equitymaster, 16 Oct

Adon Agro Commodities passes AGM resolutions with 100% votes in favor

scanx.trade, 03 Oct

Compare with

Equitymaster, 15 Oct

Adon Agro Commodities IPO Date, Price Band, GMP, Subscription & Allotment

IndiaIPO, 23 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong13.3/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🟢ValuationAttractive11/15

🔴RiskHigh2.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 108% a year143.9% CAGR
✓EBITDA margin holds above 9%10.7%
✗Free cash flow remains positive-₹14 Cr
✓Debt / EBITDA stays below 2x0.7x
✓ROCE stays above 57%60.2%