Check Before You Invest : Ador Welding Ltd

Q: Which industry/sub-sector does Ador Welding Ltd belong to?

Ador Welding Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.

Q: Is Ador Welding Ltd a good quality company?

Ador Welding Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ador Welding Ltd undervalued or overvalued?

Ador Welding Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 22.62, Historic Median: 29.00. Price to Book, Current: 3.32, Historic Median: 3.86. Price to Sales, Current: 1.65, Historic Median: 1.72. EV to EBITDA, Current: 12.62, Historic Median: 17.13

Q: Is Ador Welding Ltd a good buy now?

Ador Welding Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Ador Welding Ltd?

Ador Welding Ltd revenue growth is 4.6% for FY-2025, which is below its 5-year CAGR of 16.27%, indicating slower growth.

Q: Gross Profit margin of Ador Welding Ltd?

Ador Welding Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.7%, indicating stable margins.

Q: Operating Profit Margin of Ador Welding Ltd?

Ador Welding Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.45% for FY-2025, which is in line with its 5-year median of 9.45% indicating stable margins.

Q: Net Profit Margin of Ador Welding Ltd?

Ador Welding Ltd Net Profit Margin is 3.89% for FY-2025, is below its 5-year median of 6.81%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.7, Historic Median: 10.7. Operating Profit Margin (%), Current: 9.45, Historic Median: 9.45. Net Profit Margin (%), Current: 3.89, Historic Median: 6.81

Q: Return on Asset of Ador Welding Ltd?

Ador Welding Ltd Return on Asset is 5.36%, which is below its 5-year historical median of 10.5%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ador Welding Ltd?

Ador Welding Ltd Return on capital employed is 12.23% for FY-2025, which is below its 5-year historical median of 23.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Ador Welding Ltd

Snapshot

Q.1 Which industry/sub-sector does Ador Welding Ltd belong to?

Ador Welding Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.

Q.2 Is Ador Welding Ltd a good quality company?

Ador Welding Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ador Welding Ltd undervalued or overvalued?

Ador Welding Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	22.62	29.00
Price to Book	3.32	3.86
Price to Sales	1.65	1.72
EV to EBITDA	12.62	17.13

Q.4 Is Ador Welding Ltd a good buy now?

Ador Welding Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ador Welding Ltd?

Ador Welding Ltd revenue growth is 4.6% for FY-2025, which is below its 5-year CAGR of 16.27%, indicating slower growth.

Q.2 Gross Profit margin of Ador Welding Ltd?

Ador Welding Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.7%, indicating stable margins.

Q.3 Operating Profit Margin of Ador Welding Ltd?

Ador Welding Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.45% for FY-2025, which is in line with its 5-year median of 9.45% indicating stable margins.

Q.4 Net Profit Margin of Ador Welding Ltd?

Ador Welding Ltd Net Profit Margin is 3.89% for FY-2025, is below its 5-year median of 6.81%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	10.7	10.7
Operating Profit Margin (%)	9.45	9.45
Net Profit Margin (%)	3.89	6.81

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ador Welding Ltd?

Ador Welding Ltd Return on Asset is 5.36%, which is below its 5-year historical median of 10.5%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ador Welding Ltd?

Ador Welding Ltd Return on capital employed is 12.23% for FY-2025, which is below its 5-year historical median of 23.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Ador Welding Ltd?

Ador Welding Ltd Return on equity is 8.61% for FY-2025, which is below its 5-year historical median of 17.34%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Ador Welding Ltd?

Ador Welding Ltd Cash conversion cycle is 66 days, in line with its 5-year historical median of 64 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.38	1.54
ROE (%)	8.61	17.34
ROCE (%)	12.23	23.36
Cash Conversion Cycle	66 days	64 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ador Welding Ltd?

Ador Welding Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ador Welding Ltd?

Ador Welding Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ador Welding Ltd?

Q.1 Promoter shareholding and pledge status of Ador Welding Ltd?

Promoters hold 53.76% of the Ador Welding Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ador Welding Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ador Welding Ltd vs industry peers?

Ador Welding Ltd revenue CAGR is 16.27%, compared to the industry median CAGR of 7.29%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.6	7.3
Gross Profit Growth (%)	-11.8	24
Operating Profit Growth (%)	-13.2	21
Net Profit Growth (%)	-51.7	19.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.38	1.1
ROE (%)	8.61	11.33
ROCE (%)	12.23	14.01
Cash Conversion Cycle (days)	66.08	90

Valuation & price assessment

Q.1 Stock return of Ador Welding Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.6%	21.6%	0.7%	27.6%

Q.2 Valuation ratios of Ador Welding Ltd vs historical?

The current P/E ratio of 22.62 is lower than its historical median of 29.00, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22.62	29.00	19.09
Price to Book	3.32	3.86	1.95
Price to Sales	1.65	1.72	1.73
EV to EBITDA	12.62	17.13	10.27

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Check Before You Invest : Ador Welding Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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