High ROE & High ROCE Multibagger Small-cap Stock: This Information Technology Company Announced Dividend of Rs 25 per Share; Set Record Date of April 2, 2025

With a PE ratio of 19.4, the company trades at a discount compared to the industry PE of 21.1. The company has ROCE of 45.2 per cent and ROE of 33.69 per cent.

ADC India Communications Limited has announced an interim dividend of Rs 25 per equity share for the financial year 2024-25. This declaration was made during the board meeting held on March 25, 2025. The record date for determining the shareholders eligible for this dividend is set for April 2, 2025, and the payment will be made on or before April 23, 2025, subject to tax deduction at source as per the Income Tax Act, 1961.

ADC India Communications Ltd, incorporated in 1988, specialises in manufacturing and trading telecommunications and IT networking products. The company caters to both enterprise and telecom service providers, offering solutions such as copper and fibre physical connectivity, structured cabling, and network infrastructure. Its business segments include telecommunications and IT networking, with a significant focus on enterprise network solutions, carrier network solutions, and broadcast and entertainment solutions. In FY23, the company reported that 95 per cent of its revenue came from traded goods, with cables accounting for 60 per cent of product sales. The company operates predominantly in the domestic market, with 99 per cent of its revenue generated locally. A notable risk is the high client concentration, with over 84 per cent of revenue coming from the top two customers. In a recent change, Mr. Anandu Vithal Nayak was appointed as the Chief Financial Officer, replacing Mr. Rakesh Kishore Bhanushali.

As of March 25, 2025, the stock price of ADC India Communications Limited is Rs 1,199.9. The 52-week high is Rs 2,204.2, and the 52-week low is Rs 881.75. ADC India Communications Limited has a market capitalisation of Rs 569 crore, a 1-year return of 37.86 per cent, and a 3-year multibagger return of 308.97 per cent.

In the Quarterly Results of December 2024, the company reported a revenue of Rs 41.92 crore, reflecting a YoY decline of 0.36 per cent compared to Rs 42.07 crore in December 2023. The operating profit stood at Rs 7.06 crore, marking a 12.62 per cent decline from Rs 8.08 crore in the same quarter last year. The profit after tax (PAT) declined by 8.62 per cent to Rs 5.83 crore from Rs 6.38 crore in December 2023.

In FY24, the company posted a revenue of Rs 178.74 crore, registering a 25.07 per cent growth compared to Rs 142.91 crore in FY23. The net profit for the year stood at Rs 20.69 crore, up 153.24 per cent from Rs 8.17 crore in the previous financial year.

With a PE ratio of 19.4, the company trades at a discount compared to the industry PE of 21.1. The company has ROCE of 45.2 per cent and ROE of 33.69 per cent.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.