Has anyone heard of the Ador group of companies?

#1
Hi everyone,

I'm new here and new to investing. I'm trying to understand stocks and investing and am not sure where to begin! Sometimes it is so confusing with so many complicated terms!! :)) I need some advice. Has anyone heard about the Ador group of companies? I understand they have this company Ador Fontech and some others. How is their reputation? How big are they? Someone I spoke to told me, they have been there for many many years and are good. But I don't know anything. One of their companies was recommended to me by someone but am not sure. I trust this person who recommended it very much, he is very experienced and has been right before but I want to be sure these Ador people are not like Sahara or Vijay Mallya before I invest. How can one know if a company's stock is a good buy or not? I'm trying to buy low PE stocks but someone said that is not a sure way. Please give me some tips on studying a company.
 
#2
Can someone help me? I want to study Ador Multiproducts. Does anyone have any knowledge about this company? It makes deodorants and perfumes. Someone I know says it is a good investment.
 
#3
Hi Manish,

If you have checked last change in price this stock fell nearly 5% in a single day. I also did not notice a high volume trading for this stock. Last time this company had given dividedn was in 2010. The stock may shoot up if they give some divdend this year. But this seems unlikely as as company has reported a net loss compared to previous year. Also promoter holding is low. Considering these things I will not buy this stock or may not recommend anyone. Trading in this stock should be done only if one has more information than available on bse websites.



Regards
Yatin Chaubal
 
#4
Hi Yatin,

Thanks for replying. I'm Manisha, not Manish :). Yes, I've been advised that Ador multiproducts is having a better year because they have launched their own brand of hand sanitizers which have got a favorable response. They are also making deodorants. My adviser says, a dividend of 10% or even more is expected this year. I want to assess how realistic this is. I made some inquiries and have got positive feedback about Ador group. They are the ones who are behind Ador Welding (earlier known as Advani Oerlikon limited) which seems quite a large and profitable company.
 

yusi

Well-Known Member
#6
This may or may not help you, but...

It has been decades since I was in touch with that end of the market (that is, tools, hardware, machinery, bearings, pipe / fittings that are part and parcel of every workshop and factory), but in those days Advani Oerlikon welding products were the best one could buy, and their selling agency / subagency was a guarantee to riches. And old Sindhi (probably family controlled) business that was low profile but best in its class. I also had a friend (Sindhi) who used to work for them in Pune. So one imagines that it is a kind of business that Warren Buffet would have considered, and invested in if the figures were right.

Roll forward many years, and the name is now Ador, with welding remaining their flagship. But I would not know how they have adapted over the years; at least nothing that Google or annual reports or charts will not tell you. Like Carborundum abrasives, or Gedore (not publicly listed) hand tools, or KSB pumps, or Sintex tanks, these are names that you want to preferably identify on the ground floor.

My best suggestion is that you take a stroll down to the (non-computer) hardware market in your city and look at the signboards and shops, and talk to a few persons. This should automatically tell you which brands are thriving. Of course, this suggestion does not apply to Ador Multiproducts, but you would know where to ask about it based on their product line.
 

Rish

Well-Known Member
#7
Hi Yatin,

Thanks for replying. I'm Manisha, not Manish :). Yes, I've been advised that Ador multiproducts is having a better year because they have launched their own brand of hand sanitizers which have got a favorable response. They are also making deodorants. My adviser says, a dividend of 10% or even more is expected this year. I want to assess how realistic this is. I made some inquiries and have got positive feedback about Ador group. They are the ones who are behind Ador Welding (earlier known as Advani Oerlikon limited) which seems quite a large and profitable company.
Till June Company Sales is appr. 3.10 crores and and Net Profit Margin in Negative. Previous year company's Net profit Margin is negligible, compared to Standard Norms of NPM.

100% dividend is ruled out.

Still, if you want to buy, that is only speculation.

Decision is yours.
 
#8
This is called speculating not investing. What happens if the company does not pay any divided, what are going to do then.
From the little I know, the stock market works on expectation. You buy a stock expecting a certain event to take place, increase in sales or profits (over short term or long term of many years), a new product launch, sale of some real estate. There has to be a reason to buy. Sometimes this may happen, sometimes it may not. If it does, the price goes up and you sell.

I asked my adviser this and here is the reply I received after much followup: (I had to really nag him! LOL!)

Ador Multiproducts had net current assets of Rs.4.18 crores on 31st March 2012. There is long term debt of Rs.51 lakhs. The net figure is 3.67 crores. The equity of the company is Rs.2.61 crores. This means that in the hypothetical event that the entire company is sold at the current price of Rs.20, someone can buy them for Rs.5 crores, pay off debts and declare dividend of Rs.3.67 crores. This will further reduce his acquisition price to Rs.1.33 crores. For this amount the takeover will get the person the companys factory at Peenya Industrial Estate, the Factory at Pondicherry, the machinery customers and knowhow. Rs.1.31 crores will not even get you a good flat in Mumbai. Here it gets you two factories. This is called 'margin of safety'. The company has given dividends earlier in '06, '07, '08, '10. They skipped dividend in '09 for lack or profits and '11 because they were going to launch new brands. The company's strategy is to have its own brands and target beauty parlours and hospitals to save on marketing cost and sell in large quantities. This is better for cash flow and good orders are already been received.

This may or may not help you, but...
That is very helpfull. I will be going this week to the malls to see the many deodorants, sanitizers and lotions being sold and check if any of them are being manufactured by Ador multiproducts.

Till June Company Sales is appr. 3.10 crores and and Net Profit Margin in Negative. Previous year company's Net profit Margin is negligible, compared to Standard Norms of NPM. 100% dividend is ruled out.
Ok, Thanks. I will keep that in mind.

The results will be declared on October 19, my adviser has told me. Wait and watch is best I think. Thanks everyone! This is a great forum!
 

aryan.

Active Member
#9
From the little I know, the stock market works on expectation.
You should ask this question to those who bought stocks during the peak of housing bubble in 2008 because everyone expected the sensex to go to 30k.


Someone mentioned that it was earlier selling hardware, machinery, bearings
and now you mention about deodorants, sanitizers and lotions.

I personally do not like to invest in a such companies where I cannot describe what the company does in couple of words.

Anyway all the best with your research.
 
#10
You should ask this question to those who bought stocks during the peak of housing bubble in 2008 because everyone expected the sensex to go to 30k.
For every buyer there is a seller or there would be no transaction. I maintain that expectations drive the market. It is moving up now because people are optimistic and they expect industry to benefit from the reforms being introduced.

Someone mentioned that it was earlier selling hardware, machinery, bearings and now you mention about deodorants, sanitizers and lotions.
You're confusing the flagship company of the Ador Group, Ador Welding (former name Advani Oerlikon) with Ador Multiproducts. Ador Welding sells welding products and solutions. Ador Multiproducts is an FMCG company that sells branded lotions, sanitizers, deodorants and also manufactures them for other brand name companies. Wipro, Unilever and Himalaya Drug Co. are its present or past customers. They also have licenses for Ayurveda manufacturing and alcohol.

I personally do not like to invest in a such companies where I cannot describe what the company does in couple of words.
IMHO, that's absurd but it is your choice. Companies may have businesses that are easy or difficult to explain. What is more important is that we understand what we're owning a part of. Infosys, RIL, L&T have complex business models but have created enormous wealth. Try explaining what they do in two words. I have been taking advice from my adviser and doing a lot of research on FMCG, Indian consumption boom so I can invest well in this sector.