Ador Welding Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ador Welding Ltd trades at ₹1,384, in a confirmed uptrend and 6 weeks into that stage. That is +26.9% against its own 200-day average. It sits at 100% of a 52-week range of ₹869 to ₹1,384. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 18 straight weeks.

Today the stock is in a confirmed uptrend — week 6 of stage 2, confirmed. At ₹1,384 it trades +26.9% versus its 200-day average and sits at 100% of its 52-week range (₹869–₹1,384).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +419% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 18 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 37th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Ador Welding Ltd trades at 22.5× P/E, mid-range by its own standards (37th percentile). Its long-run median P/E is 25.5×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 22.5× is mid-range by its own standards (37th percentile), against a long-run median of 25.5× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +36.5% against a +24.5% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +12.9%/yr price move, ~+42.3%/yr came from earnings growth and ~−29.4 pp from the multiple (compressing); over 10y, of the +17.0%/yr price move, ~+14.3%/yr came from earnings growth and ~+2.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources disagree by up to 66% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ador Welding Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −30.2% at the trough to +216.7%, a 4-quarter improving streak, ROCE lifting at 23.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

74.0/100 — rank 1 of 3 in Welding Equipments · 72% evidence confidence

Ador Welding Ltd scores 74.0 out of 100 against the 3 companies it is compared with in Welding Equipments, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 24.4 + 20.6 + 9 + 20 = 74. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ador Welding Ltd reported ₹309 Cr of revenue in the Jun 26 quarter, +22.6% year on year. That is the 4th straight quarter of year-on-year growth. Over 11 years it has compounded at 10.3% a year. The last full year, FY26, came in at ₹1,140 Cr. The last four reported quarters add to ₹1,197 Cr.

Ador Welding Ltd reported ₹309 Cr of revenue in the Jun 26 quarter, +22.6% year on year. That is the 4th straight quarter of year-on-year growth. Over 11 years it has compounded at 10.3% a year. The last full year, FY26, came in at ₹1,140 Cr. The last four reported quarters add to ₹1,197 Cr.

FY26 revenue came in at ₹1,140 Cr (+1.5% on the year), capping 11 years at 10.3% compound. The latest quarter (Jun 26) printed ₹309 Cr, +22.6% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +8.8% growth against the decade's 10.3% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +8.3% over the last 4 quarters against +4.1%/yr over the last 8 — accelerating; TTM profit +216.7% vs +12.5%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 12.0% this quarter (+14.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ador Welding Ltd's operating margin is 12.0% in the Jun 26 quarter, +14.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 5.0% to 11.0%. The current quarter is running above every full year in that window.

Ador Welding Ltd's operating margin is 12.0% in the Jun 26 quarter, +14.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 5.0% to 11.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 12.0%, +14.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 5.0%–11.0%, and FY26's 11.0% is the top of that band — a record year.

Why the margin moved: operating margin went +13.3 pp year on year while gross margin went −2.4 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ador Welding Ltd earned ₹28.0 Cr of net profit in the Jun 26 quarter. Full-year FY26 profit was ₹82.0 Cr. The 11-year compound rate is 8.9%. That is 9.1% of the quarter's revenue. The same quarter a year earlier lost ₹4.0 Cr. 1 of the last 12 reported quarters were loss-making.

Ador Welding Ltd earned ₹28.0 Cr of net profit in the Jun 26 quarter. Full-year FY26 profit was ₹82.0 Cr. The 11-year compound rate is 8.9%. That is 9.1% of the quarter's revenue. The same quarter a year earlier lost ₹4.0 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹28.0 Cr, null year on year. On the full year, FY26 printed ₹82.0 Cr (+36.7%), and the 11-year compound rate is 8.9%.

Pace comparison, last four quarters: profit +142.0% vs revenue +8.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 136% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 136% of Ador Welding Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹116 Cr of operating cash against ₹82.0 Cr of profit. After ₹25.0 Cr of capital spending, ₹91.0 Cr was left as free cash.

FY26: operating cash of ₹116 Cr against reported profit of ₹82.0 Cr, leaving free cash of ₹91.0 Cr after ₹25.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 136% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 136%: the cash cycle tightened 26 days between FY20 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹77.0 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ador Welding Ltd's cash conversion cycle runs 53 days in FY26, down from 79 days in FY20. Capital spending ran ₹77.0 Cr over the last 3 years. At FY26 sales of ₹1,140 Cr each day of that cycle holds about ₹3.1 Cr, so roughly ₹166 Cr sits inside the business at any moment.

FY26: debtors at 74 days, inventory at 78 days — roughly 2.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 53 days, tighter than FY20's 79.

The full loop: cash goes out to suppliers and production on day 0; stock waits 78 days to sell; customers pay about 74 days after that; and suppliers themselves are paid at 100 days — netting out to the 53-day cycle.

In money terms: at FY26 sales of ₹1,140 Cr, each day of the cycle holds about ₹3.1 Cr — so the 53-day loop keeps roughly ₹166 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹77.0 Cr over the last 3 fiscal years against ₹48.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹3.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 23%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ador Welding Ltd earns a ROCE of 23% in FY26. That is up from a trough of 6% in FY21. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 7.2% net margin on 1.37× asset turns.

FY26 ROCE is 23%, recovered from a FY21 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.2% net margin × 1.37× asset turns × 1.50× balance-sheet leverage ≈ 14.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 66% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Ador Welding Ltd carries ₹3.0 Cr of borrowings against ₹554 Cr of equity in FY26, a debt-to-equity of 0.01. Operating profit covers the interest bill 31×. Over 6 years borrowings went from ₹82.0 Cr to ₹3.0 Cr. Capital spending ran ₹77.0 Cr across the last 3 of those years.

FY26: borrowings of ₹3.0 Cr against equity of ₹554 Cr — a debt-to-equity of 0.01. Operating profit covers the interest bill 31×. Over 6 years borrowings went from ₹82.0 Cr to ₹3.0 Cr while capital spending ran ₹77.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 66% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 3.2 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 3.2 points of Ador Welding Ltd over 8 quarters, the biggest move on the register. That takes promoters to 53.8% of the company. Foreign institutions moved +1.0 points over the same window, to 1.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −3.2 points over 8 quarters to 53.8%; Foreign institutions: +1.0 points over 8 quarters to 1.1%; Domestic institutions: +0.3 points over 8 quarters to 10.5%.

🚨 Why the register moved: promoters drove it (−3.2 points), absorbed on the other side by foreign institutions (+1.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ador Welding Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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