Is Ador Welding overvalued or undervalued?

As of 26 August 2025, the valuation grade for Ador Welding has moved from attractive to very attractive. The company is currently considered undervalued, with a PE ratio of 35.90, an EV to EBITDA of 21.44, and a ROCE of 19.94%. In comparison to its peers, Graphite India has a PE of 28.3 and an EV to EBITDA of 38.75, while HEG is even higher at a PE of 46.88 and an EV to EBITDA of 40.97, indicating that Ador Welding's valuation is more favorable in this context.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -17.33% compared to the Sensex's 3.39%, the long-term outlook remains strong with a 5-year return of 227.18%. This suggests that while short-term fluctuations are present, the company's fundamentals and valuation metrics support a positive investment thesis.