Saturday, December 7, 2013

ADOR WELDING LTD - BUY








 
Ador Welding Ltd ( Formerly Advani-Oerlikon) was a sector out performer in the past .During 2005 its share price recorded a high of Rs.520 .But later ,as a true reflection of slowing industrial growth in our country ,its share price came down to lower levels.



This company started operations in 1951 with technical collaboration of Switzerland based Welding Industries Oerlikon-Buhrie Ltd. AWP  is the pioneer and one of the market leading companies in Indian welding consumable sector.Company’s Indian manufacturing facilities are located at Silvassa, Chennai, Raipur and Pune.AWP producing various types of electrodes, wires , fluxes and welding and cutting equipments , CNC Machines,Gas cutting products and accessories..etc.Company supplying its products to many industries which includes Automobiles, Oil and Gas,Power ,Construction ..etc.In order to avail latest technology ,company recently acquired 60 % stake in Israel based Plasma Laser Technologies Ltd.Using modern technology, company Introduced many new products in India in recent past.Even during this tough times company showing resilience and reported better numbers compared with last year.Now ,many stocks from Industrial growth sensitive sectors started to perform on anticipation of bold decisions by the coming government .Based on many parameters Ador Welding is one of the best companies in this sector .
                                                                                       
 In last FY company reported a top line of Rs.364 Cr and a net profit of Rs.19 Cr .AWP is a debt free company with 57 % promoter stake and out of this not a single share is pledged .What is more attractive is its dividend paying record .For the past four years ( actually these period was really a challenging one  for a company like AWP) company maintained a dividend of 60 % .This implies a dividend yield of close to 5 % which is  highest among the listed companies on a continuous basis. I believe,this is a good opportunity to include a clean company in your  portfolio and  there is every chance for out performance once Indian Industrial growth pick up, till then you can still enjoy 5 % or more dividend yield .Recommending a BUY @ CMP Rs.123 ,which is even below its book value .Stock listed both in NSE and BSE


Link to Company website HERE

Latest Annual Report HERE

                                                                    

18 comments :

  1. hello Sir,

    Please provide your views on kopran ltd for long term..as per co website co going to invest in consumer healthcare product , is this expansion will help co in future long run ?

    ReplyDelete
    Replies
    1. Search this blog ,no change in opinion

      Delete
  2. Dear Valuepick,
    I would like to know your take on the stocks Unichem Labs and JB Chemicals and pharmaceuticals?
    Please advise..

    ReplyDelete
  3. Hello mr vp.
    I am big fan of ur site and u too.
    Mr vp. Can u suggest me few stocks for longer harizon time frame of 15 to 20 years. ...

    ReplyDelete
    Replies
    1. I don't think that is a good strategy .There may be many changes in the world in 15-20 years and buying a stock now and blindly keeping the same for that much period is not a wise decision.One should track the business dynamics periodically ( not the share price movement) and take decisions accordingly.

      Delete
  4. sir
    i wish to get ur guidence for pca scrips can i exit or hold

    venkat

    ReplyDelete
    Replies
    1. Depends on the stock .It seems investor's attitude slowly changing PCA ,even if we can only expect slightly discounted valuation due to this at this point.This may change over a period of time.

      Delete
  5. Dear Sir , Is it right time to enter the cyclical sugar stocks ?

    ReplyDelete
    Replies
    1. NO positive decisions happened even at a time there was possibility for that.Now not expecting any big changes till election is over.There may be slight demand due to the news of interest free loans to sugar cos, but it may not last long in the current circumstances

      Delete
  6. Dear Sir,
    I am interested in Pharma sector. shall i put my money in Torrent or IPCA. Drop a line sir, so that i can take decision accordingly.
    Thanking you
    Regards
    Divakar

    ReplyDelete
    Replies
    1. Both are good companies for long term.But defensive sectors may under perform, if there is over all bullishness in market

      Delete
  7. Dear Sir,
    Thanks for your wonderful guidance to small investor!!
    Is it right time to invest in Reality, Infrastructure & power sector as Business cycle is turning around and some signs are visible in GDP?
    Please advise and suggest if any stock fits in your strategy?

    Thanks

    ReplyDelete
    Replies
    1. For above average risk taking investors with long term view

      Delete
  8. Dear VP ji,

    what's your view on Sunil Hitech Engineers if you are tracking the same.

    Best Regards,

    Roshan

    ReplyDelete
    Replies
    1. Many companies from sectors like infra,power,engg ..etc are moving on the hope of a stable govt in center and some bold policy initiatives .Sustainability of this uptrend depends on election outcome .Let us hope the best and take some risk ( only with a portion of our corpus)

      Delete
  9. Sir,
    I am trying to buy Arrow Coated Products for the one week, but its always on upper circuit. How could one be able to buy it now??? Please suggest.
    Also please suggest your view on Skumars..


    Thanks

    ReplyDelete
    Replies
    1. This stock recommended @ Rs.12which already appreciated more than 200 % .Before it reaching even Rs.20 ,there was many lower circuits and nobody was there to buy it .Now @ Rs.36 everybody is running behind it.I don't think there is any big fundamental change happened contrary to the expectation when it was @ Rs.12 and now. Hence not recommending a buy at current price.

      http://value-picks.blogspot.in/search?q=GTS-3

      Delete

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