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
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