AIA Engineering Ltd. share price target

New mining customer acquisition are expected to pick up as the travel situation has started to normalise in H1FY23E and will allow AIA to gain incremental volume growth in coming years despite likely base volume impact due to anti-dumping in Canada, South Africa...

With easing of some travel restrictions and lifting of consumer sentiment, AIA Engineering saw improvement in volumes which grew by 14.5% to 69064 tons in Q2 when compared 60318 tons in Q1; though yoy growth flat lined (growth a shade under 1%). Mining business accounted for much of this rise (up +30.7%) while other businesses slackened. Propelled by price hikes - accentuated by high raw material prices - revenues grew...

New mining customer acquisitions are expected to pick up as travel situation has started to normalise in H2FY22E and will allow AIA to gain incremental volume growth in coming years despite likely base volume...

New mining customer acquisition is expected to pick up once the travel situation normalises, as expected, in H2FY22E and will allow AIA to gain incremental volume growth in coming years despite likely base volume...

Despite challenging conditions, AIA reported reasonable volumes in Q4FY21. However, new customer engagement and acquisition are expected to pick up as the travel situation is expected to normalise in H2FY22E and will allow AIA to gain incremental volume growth in coming years despite likely short term challenges due CBA investigation on anti-dumping. AIA's strong balance sheet, decent cash balance and efficient working capital management are expected to support long term growth. We expect overall revenues, EBITDA to grow at 6.5%, 6.2%, respectively, in FY20-23E. We...

AIA Engineering is engaged in designing, development and manufacturing of grinding media, liners, diaphragms and vertical mill parts which finds application in grinding and crushing operations in mining, cement and thermal power generation. The current installed capacity of the company stands at 3.9...

Further pick-up in mining volumes expected in H2FY22E During the quarter, sales volume came in at a reasonable 65173 MT in Q3FY21, up 8.1% YoY led by mining segment volumes, which grew 5.4% to 43397 MT. Cement & others segment volumes came in at 21776 MT, up 14%, YoY. Mining segment is further expected to pick up as economic activities and global travel activities are expected to normalise by Q1FY22E across the world including India while non-mining segment is also seeing good traction with revival in infrastructure, utilities spends across the world. Operations...

Pick up in mining volumes to continue over H2FY21E During the quarter, sales volumes came in robust at 68575 MT in Q2FY21, up 12% YoY led by mining segment volumes that grew 15.8% to 46750 MT. Cement & others segment volumes came in at 21825 MT, up 4.6%, YoY. Mining segment is further expected to pick up as economic activities are normalising across the world including India while non-mining segment is also seeing traction with revival in infrastructure, utilities spends across the world. Operations across all facilities, including India, have reach pre-Covid...

Growing share via value added offerings; Retain 'BUY': We retain FY22 volumeestimatesat296kMTassumingi)Increaseinannualgrindingmediavolumes by2025kMTonanormalizedbaseofFY20,ii)Approx.10kMTcontributionfrommill lining solutions & ~70bps margin expansion over FY2022 led by benefits of INR depreciation (~75% exports), launch of relatively high margin value added mill lining solutions & operating leverage play. The stock is currently trading at 24x FY22E earnings. It deserves premium multiple due to strong business MOAT. We remain optimisticonthebusinessprospectswithadjustedROE(excash)of28%byFY22E,...