Is Ador Welding overvalued or undervalued?

As of 14 August 2025, the valuation grade for Ador Welding has moved from attractive to very attractive, indicating a positive shift in its investment appeal. The company is currently assessed as undervalued, particularly when considering its price-to-earnings (PE) ratio of 35.58, price-to-book value of 3.11, and a robust return on capital employed (ROCE) of 19.94%.
In comparison to its peers, Ador Welding's PE ratio is notably higher than Graphite India at 28.96 and significantly lower than HEG, which stands at 49.46. The EV to EBITDA ratio of 21.23 for Ador Welding also suggests a more favorable valuation compared to Esab India at 31.62. Despite recent underperformance relative to the Sensex, with a year-to-date return of -18.07% versus the Sensex's 3.15%, the fundamental metrics indicate that Ador Welding presents a compelling investment opportunity at its current price of 905.35.