Fundamental

Ador Welding



Company Overview

Ador Welding Ltd. (AWL) incorporated in the year 1951, is one of India’s leading players in the field of Welding Products Technologies and Services. AWL offers comprehensive welding solutions, which includes a wide variety of electrodes, fluxes, flux-cored wires and special customised electrodes. The company covers the need of a whole range of industries like, steel, petro-chemicals, fertiliser, hydro-electric, thermal and nuclear power, heavy machinery, ship-building etc. AWL has reach in 70 plus countries and a comprehensive distribution network across the country with 300 plus distributors. AWL operates in two business segments; 1) Welding Consumables and 2) Welding Equipment and Project.

Outlook & Valuation

At CMP of Rs 376, AWL is trading at FY19E and FY20E, P/E multiples of 24.2x and 18.2x respectively. We value the stock at a FY20E target P/E multiple of 25x, which yields a target price of Rs 517 per share. We remain positive on AWL from a longer term perspective and have a BUY rating on the stock with a target price of Rs 517, which gives an upside potential of 37.5%.


Tags: Fundamental PickAdor Welding


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