Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ador Welding Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 7:31 pm

Market Cap 1,570 Cr.
Current Price 1,154
High / Low1,770/1,107
Stock P/E21.0
Book Value 351
Dividend Yield1.60 %
ROCE24.2 %
ROE18.3 %
Face Value 10.0
PEG Ratio0.95

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ador Welding Ltd

Competitors of Ador Welding Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GEE Ltd 376 Cr. 145203/67.041.7 78.60.00 %9.30 %6.50 % 2.00
D&H India Ltd 107 Cr. 131196/72.335.8 53.00.00 %9.91 %6.73 % 10.0
Ador Welding Ltd 1,570 Cr. 1,1541,770/1,10721.0 3511.60 %24.2 %18.3 % 10.0
Industry Average684.33 Cr476.6732.83160.870.53%14.47%10.51%7.33

All Competitor Stocks of Ador Welding Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales128160174200158185199235190226222247230
Expenses117146158182142170174204174199201221209
Operating Profit11131618161524321627212621
OPM %9%8%9%9%10%8%12%14%8%12%9%10%9%
Other Income2813122233344
Interest1111001111111
Depreciation3333333333334
Profit before tax9181417141322301526192520
Tax %26%17%25%23%25%25%26%25%25%25%29%26%26%
Net Profit7151113101016231120141915
EPS in Rs4.9610.777.799.717.667.3412.0316.588.2714.4010.0713.7311.13

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales341364368387407441458512526447661777850
Expenses303328331358365410423468484425601688750
Operating Profit38363728423135454222618999
OPM %11%10%10%7%10%7%8%9%8%5%9%11%12%
Other Income34-10343910109-1914610
Interest111122611108643
Depreciation12121212121110101111111213
Profit before tax282714483227283530-16587993
Tax %26%28%69%33%29%33%34%31%15%24%23%25%
Net Profit21194322318192426-12455970
EPS in Rs15.3614.033.1123.8016.6613.3213.6517.5418.84-8.8233.1143.6051.28
Dividend Payout %39%43%161%21%30%38%37%37%34%0%38%40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-9.52%-78.95%700.00%-28.12%-21.74%5.56%26.32%8.33%-146.15%475.00%31.11%
Change in YoY Net Profit Growth (%)0.00%-69.42%778.95%-728.12%6.39%27.29%20.76%-17.98%-154.49%621.15%-443.89%

Ador Welding Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:25%
TTM:12%
Compounded Profit Growth
10 Years:22%
5 Years:21%
3 Years:60%
TTM:-2%
Stock Price CAGR
10 Years:17%
5 Years:30%
3 Years:18%
1 Year:-25%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:18%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:46 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital14141414141414141414141414
Reserves171167190205224234250235224268310349463
Borrowings210035816582292174440
Other Liabilities699282118107102103108108109111114171
Total Liabilities255274286337380430431439375393452521687
Fixed Assets81759699101102115125116117123128175
CWIP022141103722523
Investments3314712146761220202330
Other Assets141184182224261322308308244248306344460
Total Assets255274286337380430431439375393452521687

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17301220-37631379261434
Cash from Investing Activity +-9-1-8-4-110-19-21-7-5-10-37
Cash from Financing Activity +-10-11-9-91933-33-13-61-31-5-2
Net Cash Flow-218-17107-411-2212-10-1-4

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow38.0034.0036.0028.0042.00-4.00-46.00-20.00-40.00-7.0059.0072.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7377791076373609086515962
Inventory Days677459585660526270708175
Days Payable6278561068584677287605143
Cash Conversion Cycle787481603450458069618994
Working Capital Days564761689314611311365557380
ROCE %14%15%11%17%12%11%14%12%6%20%27%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.90%56.90%56.90%56.90%56.90%56.90%56.90%56.90%56.90%56.90%56.90%56.94%
FIIs0.20%0.32%0.22%0.20%0.31%0.23%0.32%0.22%0.13%0.30%0.10%0.06%
DIIs6.59%6.67%6.72%6.70%4.80%4.44%2.99%2.79%4.02%4.43%5.74%10.21%
Public36.30%36.11%36.16%36.19%37.99%38.42%39.78%40.08%38.96%38.38%37.25%32.78%
No. of Shareholders14,58214,63214,54914,72717,44318,22819,30623,20928,05930,27432,57529,283

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Sundaram Long Term Micro Cap Tax Advantage Fund - Series VI8,7412.71.048,7412024-10-230%
Sundaram Long Term Tax Advantage Fund - Series III8,0192.780.958,7412024-10-23-8.26%
Sundaram Long Term Tax Advantage Fund - Series IV5,2622.760.628,7412024-10-23-39.8%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)33.21-7.6321.1518.0413.54
Diluted EPS (Rs.)33.21-7.6321.1518.0413.54
Cash EPS (Rs.)41.220.5829.0625.1621.01
Book Value[Excl.RevalReserv]/Share (Rs.)207.42174.66196.60192.21180.16
Book Value[Incl.RevalReserv]/Share (Rs.)207.42174.66196.60192.21180.16
Revenue From Operations / Share (Rs.)486.38329.18387.16377.41337.01
PBDIT / Share (Rs.)46.9520.2139.0339.8932.05
PBIT / Share (Rs.)38.9312.0031.1332.7724.57
PBT / Share (Rs.)42.80-10.3424.7926.1220.66
Net Profit / Share (Rs.)33.20-7.6321.1518.0413.54
NP After MI And SOA / Share (Rs.)33.20-7.6321.1518.0413.54
PBDIT Margin (%)9.656.1410.0810.569.51
PBIT Margin (%)8.003.648.038.687.29
PBT Margin (%)8.79-3.146.406.926.13
Net Profit Margin (%)6.82-2.315.464.784.01
NP After MI And SOA Margin (%)6.82-2.315.464.784.01
Return on Networth / Equity (%)16.00-4.3610.759.387.51
Return on Capital Employeed (%)18.336.7215.1916.3013.06
Return On Assets (%)11.49-2.766.455.714.30
Total Debt / Equity (X)0.000.110.300.240.33
Asset Turnover Ratio (%)1.721.091.201.191.13
Current Ratio (X)2.211.611.741.801.70
Quick Ratio (X)1.351.131.361.471.39
Inventory Turnover Ratio (X)5.535.236.336.666.33
Dividend Payout Ratio (NP) (%)0.000.0061.4527.7036.93
Dividend Payout Ratio (CP) (%)0.000.0044.7319.8723.79
Earning Retention Ratio (%)0.000.0038.5572.3063.07
Cash Earning Retention Ratio (%)0.000.0055.2780.1376.21
Interest Coverage Ratio (X)17.164.296.165.998.19
Interest Coverage Ratio (Post Tax) (X)10.733.124.343.714.46
Enterprise Value (Cr.)834.28418.25321.92509.31573.44
EV / Net Operating Revenue (X)1.260.930.610.991.25
EV / EBITDA (X)13.0715.216.069.3913.16
MarketCap / Net Operating Revenue (X)1.270.910.460.921.11
Retention Ratios (%)0.000.0038.5472.2963.06
Price / BV (X)2.981.720.921.812.08
Price / Net Operating Revenue (X)1.270.910.460.921.11
EarningsYield0.05-0.020.110.050.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ador Welding Ltd as of November 19, 2024 is: 1,370.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 19, 2024, Ador Welding Ltd is Undervalued by 18.76% compared to the current share price 1,154.00

Intrinsic Value of Ador Welding Ltd as of November 19, 2024 is: 1,674.35

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 19, 2024, Ador Welding Ltd is Undervalued by 45.09% compared to the current share price 1,154.00

Last 5 Year EPS CAGR: 22.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.25%, which is a positive sign.
  2. The company has higher reserves (253.08 cr) compared to borrowings (30.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (503.00 cr) and profit (37.15 cr) over the years.
  1. The stock has a high average Working Capital Days of 80.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 67.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ador Welding Ltd:
    1. Net Profit Margin: 6.82%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.33% (Industry Average ROCE: 14.47%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16% (Industry Average ROE: 10.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.73
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.35
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 21 (Industry average Stock P/E: 32.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ador Welding Ltd. is a Public Limited Listed company incorporated on 22/10/1951 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L70100MH1951PLC008647 and registration number is 008647. Currently company belongs to the Industry of Welding Equipments. Company’s Total Operating Revenue is Rs. 661.48 Cr. and Equity Capital is Rs. 13.60 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Welding EquipmentsAdor House, 6, K Dubash Marg, Mumbai Maharashtra 400001investorservices@adorians.com
http://www.adorwelding.com
Management
NamePosition Held
Mrs. Ninotchka Malkani NagpalExecutive Chairman
Mr. A T MalkaniManaging Director
Mr. D A LalvaniNon Executive Director
Mr. R A MirchandaniNon Executive Director
Ms. Tanya H AdvaniNon Executive Director
Mr. P K GuptaInd. Non-Executive Director
Mr. R N SapruInd. Non-Executive Director
Mr. K Digvijay SinghInd. Non-Executive Director
Mr. G M LalwaniInd. Non-Executive Director
Mrs. Nita Dempo MirchandaniInd. Non-Executive Director
Mr. N S MarshallInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Ador Welding Ltd?

The latest intrinsic value of Ador Welding Ltd as on 19 November 2024 is ₹1370.48, which is 18.76% higher than the current market price of ₹1,154.00.

What is the Market Cap of Ador Welding Ltd?

The Market Cap of Ador Welding Ltd is 1,570 Cr..

What is the current Stock Price of Ador Welding Ltd as on 19 November 2024?

The current stock price of Ador Welding Ltd as on 19 November 2024 is ₹1,154.

What is the High / Low of Ador Welding Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ador Welding Ltd stocks is 1,770/1,107.

What is the Stock P/E of Ador Welding Ltd?

The Stock P/E of Ador Welding Ltd is 21.0.

What is the Book Value of Ador Welding Ltd?

The Book Value of Ador Welding Ltd is 351.

What is the Dividend Yield of Ador Welding Ltd?

The Dividend Yield of Ador Welding Ltd is 1.60 %.

What is the ROCE of Ador Welding Ltd?

The ROCE of Ador Welding Ltd is 24.2 %.

What is the ROE of Ador Welding Ltd?

The ROE of Ador Welding Ltd is 18.3 %.

What is the Face Value of Ador Welding Ltd?

The Face Value of Ador Welding Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ador Welding Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE