Buy Ador Welding; target of Rs 735: ICICI Direct
ICICI Direct is bullish on Ador Welding recommended buy rating on the stock with a target price of Rs 735 in its research report dated June 11, 2021.
June 15, 2021 / 11:21 AM IST
ICICI Direct's research report on Ador Welding
We recently attended the analyst meet of Ador Welding (AWL). AWL aims to focus on core welding business, reduce legacy costs while streamlining projects business to regain growth momentum and improve profitability. In the domestic welding business, it aims to focus on improving margins, realisations with reconfiguration of manufacturing systems, cost rationalisation, advanced product developments, reduction of logistics costs and optimised product mix. In welding automation business, it aims to focus on improving strike ratio of orders, enhance product portfolio. In projects business, it aims to focus on flares, process equipment business, stable revenue growth, increase margins, better cash flows and reduced costs.
We value AWL on 20x FY23E EPS and arrive at a revised target price of Rs 735 (earlier Rs 590) and maintain our BUY rating.
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