Broking house, Edelweiss Research is bullish on AIA Engineering and has recommended buy rating on the stock. AIA should now be among the key stocks in the mid-cap portfolios of investors.
Edelweiss Research report on AIA Engineering:
"AIA Engineering reported a strong set of numbers for Q2FY07, which were ahead of our expectations in terms of net profit. Sales were up 38.2% Y-o-Y, with growth coming in from domestic as well as exports front. Increase in production volumes coupled with improvement in average realization led to a ~846bps Y-o-Y expansion in EBITDA margin to 25.2%. Overall, PAT grew by 131% Y-o-Y to INR 241 mn in Q2FY07."
Core mid-cap stock; maintain 'BUY'
"We expect AIA's sales and profits to increase by 36.2% and 71.0% Y-o-Y, respectively, in FY07E. At Rs 901, the stock trades at a P/E of 17.9x and 14.8x on FY07E and FY08E EPS of Rs 50.4 and Rs 61.0, respectively. We maintain our 'BUY' recommendation and among our top picks in the infrastructure space. AIA should now be among the key stocks in the mid-cap portfolios of investors."
