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.
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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