Archive · 20 Aug 2025
Ador Welding: Broker Maintains 'Buy' Despite Q1 Challenges
Ador Welding, a company that makes welding products, had a tough quarter because of problems with a project for ONGC.
This led to some financial write-offs.
The company's core welding business also saw a decrease in revenue and profit margins.
Analysts expect things to get better next year, without the project's problems.
Experts believe the company's stock is a good buy and that it will bounce back, so they set a target price.
They also note new hires will strengthen the team.
Ador Welding reported poor financial performance in Q1 FY26 due to write-offs from the ONGC Uran Flares project.
Core Welding revenue decreased by 4% year-on-year, with EBIT margins down to 14.5%.
Analysts have fine-tuned estimates downwards due to the project's impact.
Improved profitability is expected in FY27, excluding project business impacts.
A 'Buy' rating is maintained with a target price of ₹1,151, based on attractive valuations.
- Who
- Ador Welding and a broker making a recommendation.
- What
- Ador Welding's financial performance and a broker's recommendation.
- When
- Q1 FY26, FY27 (projected)
- Where
- Not explicitly mentioned
- Why
- Due to write-offs from the ONGC Uran Flares project and overall market conditions.
- Company
- Ador Welding
- Rating
- Buy
- Target Price
- ₹1,151
- CMP
- ₹931.35
- Revenue Drop
- 4% (Core Welding)
- EBIT Margin
- 14.5%