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LORD JESUS CHRIST SAYS

The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full. “I am the good shepherd. The good shepherd lays down his life for the sheep.

23 Jul 2015

ADOR WELDING.

Hi, Friends,  Ador Welding Limited :-  As a pioneer of welding products, AWL has strived since 1951 to service Indian Industry and the global market with the finest range of welding consumables and equipment, they ensure the highest level of customer satisfaction via their “State of the art”manufacturing plants, knowledge d based centers of excellence and  a comprehensive sales and distribution net work.  AWL has also made large investment of Project Engineering business.  AWL is a total solutions provider offering an update suite of welding and cutting consumables, Power sources and accessories besides a full package of soft skills and knowledge development for welding and fabrication excellence


.AWL  is the business of providing software & hardware solutions for Metal joining, Project Engineering and Energy Management. Their mission is to continually improve their technologies, products and services to meet their customers’expectations, allowing them to proper as a business provide enhanced value through equitable business partnership and thus ensure reasonable returns to their shareholders.


Their major export market includes South Africa, Malaysia, Singapore, Saudi Arabia, Kuwait & UAE.  Group Companies:-  JB Advani & Coy.(P) Ltd., Ador Fontech Ltd., Ador Power ton Ltd., Ador Multi products Ltd.


FINANCIALS:-  Equity Capital  Rs.13.60 Cr.  ,  Share Price Rs.296/-,  Market Cap  Rs.401.15,  PE – 12.39,  Book Value Rs.150.02,  Div.50%,  EPS – 23.80,  Face Value Rs.10/-,  Industry PE – 24.89,  Reserve excluding Revaluation Reserve Rs.190.41cr.  Total Sales Income in cr. for the period from 2011-2015:-  295.48,  340.91,  364.17,  368.92,  & 384.94.  Net Profit in cr. for the period 2011-2015:-  25.69,  20.89,  19.08,  4.23  & 32.37.  Bonus History:  1996 -  1:2,  Dividend – 2007 – 2015 regularly paid.


Management efficiency-  Return on Equity – 15.86%,  Return on Assets 11.60% ,  Return on Capital employed – 7.93%,  Gross Profit Margin – 4.34%,  Operating Profit Margin – 7.57%,  Net Profit Margin – 8.40%,  Debit Equity Ratio – 0.08%,  Cash flow to Long Term Debt – 0.01%.


Shareholding Pattern:- Promoters – 56.32,  General Public – 22.07,  NBFC/Mutual Fund – 16.09,  Foreign NRI – 3.12,  Other Companies – 1.64, Foreign Promoters – 0.36,  Others – 0.36,  Foreign Institutions – 0.03.


AWL Key Products/Revenue Segments include Electrodes which contributed to Rs.160 Cr. to Sales  Value (41.50% of total sales), Wires & Flexes which contributed Rs.111.09 Cr. to Sales Value (28.85% of Total Sales) ,Spares/Equipment which contributed to Rs.61.31 crore to Sales Value (15.92% of total sales) , Engineering & Projects which contributed to Rs.41.93 Cr. to sales value (10.89%of total sales), Welding Accessories which contributed to Rs.6.73 Cr. to Sales Value (1.74% of total sales), Service income which contributed to Rs.2.82 Cr. to Sales value (0.73% of total sales), Other operating revenue which contributed Rs.1.06 Cr. to sales value (0.27% of total sales) for the year ending 31.03.2015.


For the  quarter ended 31.03.2015 the  company has reported a standalone sales of Rs.135.91 Cr. up 56.92% from last quarter sales of Rs.86.61 Cr. and up 10.66% from last year same quarter sales of Rs.122.82 Cr.  Company has reported net profit after tax - Rs.8.73 Cr. in last quarter.The share is trading in reasonable PE but industry PE is different. Therefore chances are there for capital appreciation including Share split,  expecting in the near future. Long term investors may look into this company.


Good luck.                                                           See you later.