Ashish Kacholia's small-cap multibagger reports outstanding results with profits almost doubled, solid cash flow, and high dividend yield!

The Equipment & Automation segment recorded a remarkable 55 per cent YoY growth in revenues, reaching Rs 43.96 crores.

Indian benchmark indices concluded Wednesday's trading session with modest gains. However, it's worth noting that the broader markets continued to outperform the frontline indices, with the Mid-Cap and Small-Cap indices advancing by 0.99 and 0.70 per cent, respectively.

In recent times, the broader markets have consistently outshone the frontline indices, with many stocks in this segment experiencing significant upswings. One such noteworthy stock is Ador Welding Ltd.

Ador Welding Ltd. ended the trading session on Wednesday with gains of 1.04 per cent, closing at Rs 1323.85. Furthermore, the stock reached a fresh 52-week high of Rs 1,354.45 on that day.

Here's an intriguing insight into this stock: Ador Welding Ltd. released its Q2FY24 earnings after the market closed, and the results are truly remarkable.

Key Financial Highlights (Q2 FY23 vs. Q2 FY22):

- Revenues from operations reached Rs 225.96 crores, marking a significant 22 per cent year-on-year (YoY) increase.

- Net profit surged to Rs 19.58 crores, a remarkable 96 per cent YoY growth.

- Earnings per share (EPS) also exhibited impressive growth, increasing by 97 per cent to reach Rs 14.4 per share.

Segment Performance:

- The Consumables segment showed robust growth, with revenues increasing by approximately 19 per cent YoY to Rs 176.87 crores.

- The Equipment & Automation segment recorded a remarkable 55 per cent YoY growth in revenues, reaching Rs 43.96 crores.

Ador Welding's performance in this quarter has been nothing short of excellent, with substantial growth in both revenues and profitability. The high-margin consumables segment played a pivotal role in this achievement. Margin expansion and the benefits of operating leverage further contributed to the impressive earnings growth. It is evident that the company is capitalizing on the resurgence of industrial demand and is positioned for success.

It's worth noting that prominent investor Ashish Kacholia holds a substantial 4.38 per cent stake in the company, equivalent to 595,400 shares. Over the past year, the stock has witnessed a substantial increase of nearly 60 per cent in its value, and over the last three years, it has soared by a remarkable 442 per cent, solidifying its status as a multibagger small-cap stock. The company offers a dividend yield of 1.32 per cent.

The stock has shown tremendous growth and investors should keep a close eye on this stock.