AIA Engineering Ltd. share price target

Strategic qualitative initiatives to drive growth: AIA witnessed a Mining conversion strategy to lead volume growth recovery: AIA has had a key breakthrough in its mining conversion strategy. It has bagged its maiden order worth $32.9 million (~291 crore) from a leading copper mining international company in Chile for the supply of high-chrome grinding media, strengthening AIA's foothold in the world's largest copper market, reinforcing confidence in volume recovery and earnings growth from FY27E onward. AIA's volume declined 14% over FY24-25 to 255000...

About the stock: AIA Engineering (AIA) is India's largest manufacturer and supplier of high chrome wear, corrosion and abrasion resistance castings used in cement, mining and thermal power plants (or mills). Products include tube mill internals (grinding media, shell liners,...

We initiate coverage on AIA Engineering ltd with a “BUY” recommendation and a target price
of Rs 5,106/- per share. AIAE currently trades at 31X its EV/EBITDA Multiple. The company
holds a strong position in a duopoly market.

Q4 revenue down 9.7% YoY with gross margin expanding 160bps and EBITDA margin 220bps

AIAE: Soft quarter, volume growth uncertain; cut to HOLD. BOB Essential Commodities Index: How prices look in Jan'24. SYRMA: Margin slide continues; retain HOLD. BRIT: Faster volume growth to boost profitability

AIA Engineering (AIAE) reported strong Q1FY24 earnings with EBITDA up 39% YoY to INR 3.4bn. This was led by 9.1% YoY/5% YoY growth in volumes/realisations and 480bps YoY EBITDA margin improvement to 27.7%. Sharp improvement in EBITDA margin was on favourable product mix and decline in other expenses.

AIA Engineering (AIAE) reported a resilient set of numbers with EBITDA up 40% YoY to Rs3.2bn. This was led by 3% YoY / 12.2% YoY growth in volumes / realisation and 420bps YoY improvement in EBITDA margin to 23%. However, sequentially realisation declined slightly by 2% (lower than our estimates and company guidance).

Q4 EBITDA margin expands to 24.8% on a better revenue mix; stronger margin coupled with higher other income aids a beat on PAT

AIA Engineering (AIAE) has reported an outstanding performance in Q3FY23 with revenue, EBITDA and PAT coming in at Rs12.2bn, Rs3.6bn and Rs3.5bn (+45%, +127% and +155% YoY), respectively.

Strong all-round beat; Q3 EBITDA margin boosted to 29.8% by a better mix and one-offs, with 20-22% levels seen as sustainable

AIA Engineering (AIAE) is on track to deliver ~30,000te incremental volumes (in line
with management guidance) each year in FY23 and FY24, led by steady demand, likely
gradual easing of logistics issues and capacity expansion.

AIA Engineering (AIAE) is on track to deliver ~30,000te incremental volumes (in line
with management guidance) each year in FY23 and FY24, led by steady demand, likely
gradual easing of logistics issues and capacity expansion.

AIA Engineering’s (AIAE) consolidated revenues, EBITDA and PAT came in at Rs10.8bn, Rs2.5bn and Rs1.9bn (+46%, +44% and +28% YoY), respectively.