Buy Ador Welding, target price Rs 945: ICICI Direct

ICICI Direct has buy call on Ador Welding with a target price of Rs 945. The current market price of Ador Welding Ltd. is Rs 730.35. Time period given by analyst is one year when Ador Welding Ltd. price can reach defined target.

Ador Welding Ltd., incorporated in the year 1951, is a Small Cap company (having a market cap of Rs 991.40 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 30-09-2021, the company reported a Consolidated Total Income of Rs 160.88 Crore, up 24.24 % from last quarter Total Income of Rs 129.49 Crore and up 66.68 % from last year same quarter Total Income of Rs 96.52 Crore. Company reported net profit after tax of Rs 14.64 Crore in latest quarter.

Investment Rationale
Going forward, better consumables volumes, rebound in equipment sales and projects business turnaround to drive growth, profitability. Considering strong growth outlook, margin revival, the brokerage maintains BUY rating.

Promoter/FII Holdings
Promoters held 56.9 per cent stake in the company as of 30-Sep-2021, while FIIs owned 0.2 per cent, DIIs 6.59 per cent.