Ador Fontech Ltd - Stock Valuation and Financial Performance

BSE: 530431 | NSE: | Electrodes & Welding Equipment | Small Cap

Ador Fontech Share Price

141.40 2.95 2.13%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Ador Fontech

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Ador Fontech stock performance -

mw4me loader
P/E Ratio (SA):
19.45
Market Cap:
494.9 Cr.
52-wk low:
90
52-wk high:
169.7

Is Ador Fontech Ltd an attractive stock to invest in?

1. Is Ador Fontech Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Ador Fontech Ltd is a good quality company.

2. Is Ador Fontech Ltd undervalued or overvalued?

The key valuation ratios of Ador Fontech Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Ador Fontech Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Ador Fontech Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Ador Fontech:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ador Fontech Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 15.8%15%12%9.6%8.1%12.7%10.3%11%18.5%16.1%-
Value Creation
Index
0.10.1-0.1-0.3-0.4-0.1-0.3-0.20.30.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 139137143146151184175147205208205
Sales YoY Gr.--1.4%4.2%2.2%3.1%22.3%-5.2%-16.2%39.6%1.5%-
Adj EPS 3.73.73.12.52.33.93.23.66.96.67.3
YoY Gr.-2.5%-16.8%-19%-9.5%69.3%-16.8%12.5%90%-4.1%-
BVPS (₹) 23.825.526.32729.73231.134.839.942.643
Adj Net
Profit
12.813.110.98.8813.511.212.6242325
Cash Flow from Ops. 6.4146.92.24.57.123.55.117.124-
Debt/CF from Ops. 0.30.100000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.5%6.6%5.9%1.5%
Adj EPS 6.8%23.6%27%-4.1%
BVPS6.7%7.4%11%6.6%
Share Price 15.3% 21.5% 56.8% 52.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.915.2129.48.112.510.21118.41617
Op. Profit
Mgn %
14.614.311.69.68.4119.813.815.814.915.9
Net Profit
Mgn %
9.29.57.665.37.36.48.611.711.112.4
Debt to
Equity
0000000000-
Working Cap
Days
144155157170158128146175125129106
Cash Conv.
Cycle
8899989476586176474986

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.00%

Net Profit is growing at healthy rate in last 3 years 27.03%

Sales growth has been subdued in last 3 years 5.91%

Sales growth is not so good in last 4 quarters at 1.50%

Latest Financials - Ador Fontech Ltd.

Standalone Consolidated
TTM EPS (₹) 7.3 6.3
TTM Sales (₹ Cr.) 205 212
BVPS (₹.) 43 35.8
Reserves (₹ Cr.) 144 118
P/BV 3.29 3.95
PE 19.45 22.42
From the Market
52 Week Low / High (₹) 90.00 / 169.70
All Time Low / High (₹) 0.70 / 169.70
Market Cap (₹ Cr.) 495
Equity (₹ Cr.) 7
Face Value (₹) 2
Industry PE 22.7

Management X-Ray of Ador Fontech:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Ador Fontech

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales139137143146151184175147205208
Operating Expenses 119118127132138164158126172177
Manufacturing Costs78911121516121718
Material Costs78748285861039677113121
Employee Cost 19202123242527242825
Other Costs 15161513172018141613
Operating Profit 20201614132017203231
Operating Profit Margin (%) 14.6%14.3%11.0%9.6%8.4%11.0%9.8%13.8%15.8%14.8%
Other Income 3443433265
Interest 0000000000
Depreciation 3433333233
Exceptional Items 0000000000
Profit Before Tax 20201613132017203533
Tax 776446671010
Profit After Tax 131310991411132523
PAT Margin (%) 9.2%9.7%7.2%6.0%6.0%7.5%6.5%8.7%12.4%11.1%
Adjusted EPS (₹)3.73.83.02.52.64.03.23.67.36.6
Dividend Payout Ratio (%)48%46%59%59%58%44%56%61%55%76%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 83899295104112109122140149
Share Capital 4444447777
Reserves 80868991101109102115133142
Minority Interest0000000000
Debt2200000000
Long Term Debt2200000000
Short Term Debt0000000000
Trade Payables991320131525192118
Others Liabilities 22252413121191088
Total Liabilities 116125129128130138143150169175

Fixed Assets

Gross Block35384242373850525657
Accumulated Depreciation14182022192124252829
Net Fixed Assets21212220191727262828
CWIP 0000112200
Investments 10101015222820273031
Inventories24242525222129252322
Trade Receivables27273330262333272831
Cash Equivalents 25313025272621273841
Others Assets9111013152212152221
Total Assets 116125129128130138143150169175

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 61472472451724
PBT 20201613132017203533
Adjustment 0-7-8-4011100
Changes in Working Capital -81-2-7-5-79-10-8-1
Tax Paid -6000-4-6-4-6-10-8
Cash Flow From Investing Activity 1-1-1-10-2-9-4-9-9
Capex -5-4-4-2-2-1-13-2-5-3
Net Investments -300-2-1-3-252-8
Others 9433327-7-62
Cash Flow From Financing Activity -7-7-7-6-2-6-14-3-8-14
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0000000000
Dividend Paid -7-6-7-60-6-150-8-14
Others 0-100-201-3-10
Net Cash Flow 16-2-53-10-301
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.8515.4811.449.469.0412.7810.2611.0319.4615.96
ROCE (%)24.7722.9518.1214.2713.6118.7715.6117.5227.0322.74
Asset Turnover Ratio1.281.211.191.141.171.381.2511.281.21
PAT to CFO Conversion(x)0.461.080.70.220.440.52.180.380.681.04
Working Capital Days
Receivable Days66687279684959754951
Inventory Days59615962564352674340
Payable Days544650717151771056559

Ador Fontech Ltd Stock News

Ador Fontech Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Ador Fontech on 12-Apr-2024 16:59 is ₹141.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Ador Fontech stood at ₹494.9.
The latest P/E ratio of Ador Fontech as of 12-Apr-2024 16:59 is 19.45.
The latest P/B ratio of Ador Fontech as of 12-Apr-2024 16:59 is 3.29.
The 52-week high of Ador Fontech is ₹169.7 and the 52-week low is ₹90.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Ador Fontech is ₹205.1 ( Cr.) .

About Ador Fontech Ltd

Ador Fontech incorporated as Cosmics Electronics and Ancillaries Private Limited on 22nd August, 1974. The company is into the business of supply of products, services and solutions that help in conservation of mineral reserves as well as in reducing down-time and inventory costs.

The product spectrum consists of low heat input welding alloys, solid and flux-cored wires, welding and cutting equipment, fume extraction products, in-situ machining systems, thermal spray products and hands-on rebuilding and reclamation services.

Milestones

  • 1974- Company got incorporated.
  • 1980- Company started its operations.
  • 1983- Company started new reclamation welding alloy developed for the Indian Railways in the H3 class.
  • 1985 - Ador Fontech finalised an exclusive distributorship for India from Sulzer Metco (Switzerland, Singapore & USA) for thermal spray equipment and materials.
  • 1987 - It launched of Fonmatic open arc FCAW wires and feeders.
  • 1988 - Company started Fontech training centre in Mumbai.
  • 1992 - Ador Fontech acquired FIST India Private Limited and Kostech India Private Limited merger with itself. The number of shareholders was increased from 112 to 1874 and equity capital increased from Rs. 48 lakh to Rs. 169 lakh.
  • 1994 - Company further increased equity capital increased to Rs 225 lakh.
  • 1995 - Ador Fontech successfully completed public issue and raise the equity capital to Rs 350 lakh.
  • 1996 - Company received ISO 9002 Certification. The same year it launched Arcofon range of superior wear resistance technology wear plates.
  • 1997 - Company bagged exclusive distributorship for copper and copper alloys from Bedra (Germany).
  • 1998 – Company received exclusive distributorship for Gasflux range of products and services. It received approval of special welding alloys from defence organisations for armour steel welding. It also exclusive distributorship for Euromate (Holland) range of welding fume extraction equipment and systems.
  • 1999 - Ador Fontech received exclusive distributorship for CEA (Italy) range of inverter welding equipment.
  • 2000 - Company bagged exclusive distributorship for CEPRO (Netherlands) range of world class 'welding spot separation' products.
  • 2002 - It received distributorship for Soitaab (Italy) range of cutting systems.
  • 2004 - Ador Fontech started manufacturing unit for low heat input welding alloys at Bangalore.
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