NSEI:ADORWELD

Stock Analysis Report

Executive Summary

Ador Welding Limited manufactures and supplies welding and cutting consumables, power sources, and accessories in India and internationally.

Rewards

Trading at 87.4% below its fair value

Earnings grew by 31.2% over the past year

Pays a reliable dividend of 1.96%

Risk Analysis

Earnings have declined by -1.5% per year over past 5 years

Does not have a meaningful market cap (₹4B)



Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.

Share Price & News

How has Ador Welding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADORWELD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

ADORWELD

1.9%

IN Machinery

-1.1%

IN Market


1 Year Return

-4.6%

ADORWELD

-6.3%

IN Machinery

7.3%

IN Market

Return vs Industry: ADORWELD exceeded the Indian Machinery industry which returned -6.8% over the past year.

Return vs Market: ADORWELD underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

ADORWELDIndustryMarket
7 Day-1.7%1.9%-1.1%
30 Day19.0%7.1%1.5%
90 Day10.6%8.1%5.1%
1 Year-2.7%-4.6%-4.9%-6.3%9.3%7.3%
3 Year14.9%9.3%7.4%3.4%28.9%22.0%
5 Year65.9%52.5%20.1%13.4%33.1%21.0%

Price Volatility Vs. Market

How volatile is Ador Welding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ador Welding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADORWELD (₹331.5) is trading below our estimate of fair value (₹2620.86)

Significantly Below Fair Value: ADORWELD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADORWELD is poor value based on its PE Ratio (16x) compared to the Machinery industry average (14.8x).

PE vs Market: ADORWELD is poor value based on its PE Ratio (16x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ADORWELD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADORWELD is overvalued based on its PB Ratio (1.7x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Ador Welding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ador Welding has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ador Welding performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADORWELD has high quality earnings.

Growing Profit Margin: ADORWELD's current net profit margins (5.2%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: ADORWELD's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: ADORWELD's earnings growth over the past year (31.2%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: ADORWELD earnings growth over the past year (31.2%) exceeded the Machinery industry 2.3%.


Return on Equity

High ROE: ADORWELD's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ador Welding's financial position?


Financial Position Analysis

Short Term Liabilities: ADORWELD's short term assets (₹2.8B) exceed its short term liabilities (₹1.5B).

Long Term Liabilities: ADORWELD's short term assets (₹2.8B) exceed its long term liabilities (₹105.7M).


Debt to Equity History and Analysis

Debt Level: ADORWELD's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: ADORWELD's debt to equity ratio has increased from 4.6% to 30% over the past 5 years.

Debt Coverage: ADORWELD's debt is well covered by operating cash flow (66.7%).

Interest Coverage: ADORWELD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ADORWELD has a high level of physical assets or inventory.

Debt Coverage by Assets: ADORWELD's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Ador Welding's current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.3%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ADORWELD's dividend (1.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: ADORWELD's dividend (1.96%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: ADORWELD's dividends per share have been stable in the past 10 years.

Growing Dividend: ADORWELD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), ADORWELD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Ador Welding's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Satish Bhat (58yo)

7.7yrs

Tenure

₹16,735,000

Compensation

Mr. Satish M. Bhat has been the Managing Director of Ador Welding Ltd. since May 11, 2012. Mr. Bhat served as the President and Chief Operating Officer at Ador Welding Ltd and has been its Additional Direc ...


CEO Compensation Analysis

Compensation vs Market: Satish's total compensation ($USD236.16K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Satish's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: ADORWELD's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

11.1yrs

Average Tenure

48yo

Average Age

Experienced Board: ADORWELD's board of directors are seasoned and experienced ( 11.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ninotchka Nagpal (48yo)

    Executive Chairman

    • Tenure: 0.2yrs
    • Compensation: ₹12.23m
  • Vinayak Bhide (50yo)

    Head of Corporate Administration

    • Deep Lalvani (38yo)

      Whole-time Director

      • Tenure: 12.5yrs
      • Compensation: ₹460.00k
    • Satish Bhat (58yo)

      MD & Executive Director

      • Tenure: 7.7yrs
      • Compensation: ₹16.74m
    • Aniruddha Vilekar (46yo)

      Head Operations & Marketing

      • Tenure: 0.3yrs
    • S. Kumar

      Head of International Business & PEB Sales Operations

      • Tenure: 4.3yrs
    • Manoj Pandey (47yo)

      Head of Human Resource

      • Sunanda Palit (56yo)

        Head of Customer Care & Strategic Support to Equipment

        • Tenure: 2.7yrs
      • Vineet Bansal (50yo)

        Sales Head of Domestic Business

        • Tenure: 2.7yrs
      • Girish Patkar (63yo)

        Chief Financial Officer

        • Tenure: 4.3yrs

      Board Members

      • Kunwar Singh (60yo)

        Independent & Non-Executive Director

        • Tenure: 10.9yrs
        • Compensation: ₹625.00k
      • Ninotchka Nagpal (48yo)

        Executive Chairman

        • Tenure: 0.2yrs
        • Compensation: ₹12.23m
      • Piyush Gupta (48yo)

        Independent & Non-Executive Director

        • Tenure: 13.3yrs
        • Compensation: ₹560.00k
      • Sasha Mirchandani (47yo)

        Non-Executive & Independent Director

        • Tenure: 5.2yrs
        • Compensation: ₹515.00k
      • Aditya Malkani (39yo)

        Non-Executive Director

        • Tenure: 12.5yrs
        • Compensation: ₹460.00k
      • Deep Lalvani (38yo)

        Whole-time Director

        • Tenure: 12.5yrs
        • Compensation: ₹460.00k
      • Ravin Mirchandani (49yo)

        Non-Executive Director

        • Tenure: 13.5yrs
        • Compensation: ₹460.00k
      • Rakesh Sapru (58yo)

        Independent & Non Executive Director

        • Tenure: 11.3yrs
        • Compensation: ₹620.00k
      • Satish Bhat (58yo)

        MD & Executive Director

        • Tenure: 7.7yrs
        • Compensation: ₹16.74m
      • Gaurav Lalwani (38yo)

        Non-Executive & Independent Director

        • Tenure: 5.2yrs
        • Compensation: ₹505.00k

      Company Information

      Ador Welding Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Ador Welding Limited
      • Ticker: ADORWELD
      • Exchange: NSEI
      • Founded: 1951
      • Industry: Industrial Machinery
      • Sector: Capital Goods
      • Market Cap: ₹4.670b
      • Shares outstanding: 13.60m
      • Website: https://www.adorwelding.com

      Number of Employees


      Location

      • Ador Welding Limited
      • Ador House
      • 6, K. Dubash Marg
      • Mumbai
      • Maharashtra
      • 400001
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      517041BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
      ADORWELDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

      Biography

      Ador Welding Limited manufactures and supplies welding and cutting consumables, power sources, and accessories in India and internationally. The company operates in two segments, Consumables, and Equipments and Project Engineering Business. It provides welding electrodes, including mild steel general purpose, mild steel special, low alloy high tensile, cellulosic, hard facing, stainless steel and heat resistant steel, cast iron, and non-ferrous electrodes; and CWC products comprising submerged arc welding fluxes and wires, and flux cored arc welding products, as well as metal cored wire, gas metal arc welding (GMAW), and gas tungsten arc welding (GTAW) products. The company also offers welding and cutting equipment, such as air plasma cutting GTAW, submerged arc welding, GMAW, shielded metal arc welding, and resistance and spot welding equipment, as well as manual plasma cutting machines and welding accessories; gas cutting products, gas cutting-welding accessories, and personal protective equipment; and CNC cutting machines. In addition, it designs, engineers, fabricates, and supplies flare systems, process packages, process equipment, and furnaces/incinerators, as well as undertakes various EPC contracts. Further, the company provides welding automation products consisting of robotic systems, columns and booms, positioners, rotators, and special purpose machines; and offers skill development services. It serves pipeline, oil and gas, pharma, shipbuilding, railway, construction and infrastructure, nuclear energy, power, automotive, and defense sectors. The company was formerly known as Advani-Oerlikon Ltd. The company was incorporated in 1951 and is based in Mumbai, India. Ador Welding Limited is a subsidiary of J.B. Advani & Co. Private Limited. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 12:54
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.