This Ashish Kacholia stock plunges 10%; here's why

Ashish Kacholia-backed Ador Welding plunged 10 per cent during the trading session on Friday after the company reported a flop show in the June 2022 quarter on a sequential basis.

The electrodes firm reported a 22 per cent decline in the consolidated net profit on a quarter-to-quarter basis to Rs 10.40 crore in June 2022 quarter. The company had reported a net profit of Rs 13.19 crore in the March 2022 quarter.

Also, there are reports that furnaces in Anhui province of China are likely to trim their working hours due to heat waves, which will be negative for the company and sector.

Following the developments, shares of Adol Wedling plunged 10 per cent to Rs 780 on Friday, before recovering to Rs 791 by 11.15 am. The scrip had settled at Rs 861.95 on Thursday.

The company reported a 21 per cent decline in the total income from operations to Rs 157 crore in Q1FY23 from Rs 199.81 crore in Q4FY22.

Ador Welding produces a variety of welding products, industry applications, and technology services, including welding consumables and welding and cutting equipment.

Seasoned investor Ashish Kacholia owns 4,37,700 equity shares or a 3.22 per cent equity stake in the company as of June 30, 2022. His holding in the company is little more than Rs 35 crore.

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