AIA Engineering Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 17970.86 Crore) operating in Engineering sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 883.41 Crore, up 18.09 % from last quarter Total Income of Rs 748.08 Crore and down -.31 % from last year same quarter. Total Income of Rs 886.15 Crore. Company reported net profit after tax of Rs 133.13 Crore in latest quarter.
Investment Rationale
Inventory days have reduced, which led to overall easing out of working capital. Easing of travel restriction will open up new client acquisition post the normalisation of covid scenario. Though near-term growth headwinds persist, given healthy cashflow, technical leadership and efficient low cost manufacturing capability, the brokerage maintains BUY with a revised target price of Rs2,335 (previously: Rs2,367). It rolls forward target multiple to 30x FY23E earnings from September 2022 earnings.
Promoter/FII Holdings
Promoters held 58.5 per cent stake in the company as of March 31, 2021, while FIIs held 18.9 per cent, DIIs 17.2 per cent and public and others 3.2 per cent.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
