Buy Ador Welding, target price Rs 890: ICICI Direct

ICICI Direct has buy call on Ador Welding with a target price of Rs 890. The current market price of Ador Welding Ltd. is Rs 641.65. Time period given by analyst is one year when Ador Welding price can reach defined target.

Ador Welding Ltd., incorporated in the year 1951, is a Small Cap company (having a market cap of Rs 868.60 Crore) operating in Industrial Equipment sector.

Ador Welding Ltd. key Products/Revenue Segments include Welding Equipment & Accessories, Others & Scrap, Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 201.25 Crore, up 14.68 % from last quarter Total Income of Rs 175.49 Crore and up 22.66 % from last year same quarter Total Income of Rs 164.07 Crore. Company reported net profit after tax of Rs 13.19 Crore in latest quarter.

Investment Rationale
Domestic welding & automation business to focus on improving margins and realisations with cost rationalisation, enhance advanced product portfolio, improving strike ratio of order wins and optimised product mix


Promoter/FII Holdings
Promoters held 56.9 per cent stake in the company as of 31-Mar-2022, while FIIs owned 0.22 per cent, DIIs 6.71 per cent.