Broker research reports for stocks which have been downgraded by brokers. Both recommendation downgrades,
as well as share price target downgrades are available for companies in Industry - Other Industrial Goods.
Broker Research reports: latest Downgrades
for Industry - Other Industrial Goods
Ador Welding (AWL) reported decent financial performance in Q2FY26, with slight ~4% growth YoY in revenue, on the back of improved realizations, but the volumes stayed put. The current margins are expected to be the baseline level and sustainable in the future. The ONGC Uran Flares project is expected to be completed this quarter and hence we expect no further surprises going ahead. FY27 should see the start of improved profitability reflecting only core business performance with minimal impact of the project business. Ador is gearing up to tap opportunities in the domestic capex upcycle from industries such as defense...
Ador Welding (AWL) reported poor financial performance in Q1FY26 primarily impacted by write offs pertaining to the ONGC Uran Flares Project. Although the Rs 279 mn of provision related to the ONGC project is a significant negative, we expect this to factor in the major operating loss for the said project in FY26. We fine tune our estimates downwards to factor in the same.FY27 should see the start of improved profitability reflecting only core business performance without any impact of the project business. Valuations at 14xFY27 expected earnings are attractive and we believe the company is gearing up to tap the...
Equipment and project & engineering business revenue fell 10.5% YoY to | 34 crore while it reported loss of | 1.7 crore at EBIT level (vs. | 7.1 crore EBIT loss in Q4FY19). For FY20, this segment reported revenue at | 122.9 crore, down 3.7%, YoY. Within this segment, equipment business fell ~4.7%, YoY and project engineering business (PEB) grew 18% YoY backed by decent execution for FY20. For FY20, PEB business reported PBT level loss of ~| 17 crore while equipment business reported PBT level profit of ~| 3.5 crore. We expect PEB losses to reduce further in next two years with focus on...
Low base effect, margins under pressure: Q1FY19 results came below our estimates. YoY revenue grew by 17.8% on the back of low base effect. However, Margin performance has disappointed, EBITDA margin is recorded at 7.3% vs our estimate of 10.4% owing to pressure from higher material costs (73.7%).
Improved growth & Healthy Margins: ESAB reported Q1 results above ourestimates. Q1FY19 earnings have witnessed a 61.5% YoY growth on the back of YoY revenue growth of 36.5% supported by an EBITDA growth of 65.4%.
Mixed results, margins under pressure: FY18 full year earnings grew by a meager 3% backed by a 3.6% revenue growth coupled with an EBITDA margin expansion of 60 bps. EBITDA margin has been recorded at 7.4% along with a net profit margin of 4.0% for FY18.
Moderate revenue growth and slight improvement in profitability: FY18full year adjusted earnings grew by 8.6% mainly on account of revenue growth of 16.5% owing to improved volumes. EBITDA margin has witnessed a minor improvement (30 bps) to reach 9.7% for FY18. We expect the revenue to grow at a decent 5.5% CAGR along with an EBITDA expansion of 80 bps to reach 10.5% by FY20E.
Disappointing Q3FY17 Results; Future Looks Optimistic: ESAB has recorded a turnover decline of 6.7% sequentially & a marginal 1.2% growth YoY for Q3FY17 owing to pressurized macro conditions and lower off-takefrom customer end. EBITDA, EBIT & PAT margins have also shrunk by 472 bps, 478 bps & 181 bps QoQ to reach 5.9%, 3.9% & 5.7% respectively. 9 months YTD performance has been quite optimistic with a revenue growth of 3.6% along withEBITDA margin contraction of 4 bps and EBIT & PAT margins expansion of 2 bps & 73 bps to reach 8.8%, 7.0% & 6.7% respectively compared to 9MFY16.
Banking on Revival in Domestic Demand Environment: Recuperating from Q1FY17 disappointment: Ador Welding (AWL) has registered a turnover growth of 31.6% sequentially & 10.9% YoY growth for Q2FY17 mainly on account of healthy order book. EBITDA margin has also expanded by 620 bps QoQ & 150 bps YoY for Q2FY17 to reach 9.1% mainly on account of stableraw material and other expenses. EBIT & Net profit margins have also expanded by 680 bps & 310 bps sequentially to 6.6% & 4.7% in Q2FY17. Positivity in results maybe related to the restoration in their plants which suffered repairs during Q1FY17 due to which production was cut down.
