ICICI Direct's research report on Ador Welding
Ador Welding (AWL) is a leading player in the welding consumables (~19% market share), welding equipment, automation and projects business. Welding consumables contributed ~81% of revenue in FY22. AWL is expected to continue strong RoCE, positive free cash flow trajectory in consumables in comings years despite a challenging environment • Aims to reduce legacy costs in projects business to improve return ratios.
Outlook
Considering strong growth outlook, margin revival, we maintain BUY rating. We value AWL at Rs 890 i.e. 18x P/E on FY24E EPS.
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