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AIA Engineering has target of Rs 269: Joshi
Investment Advisor, Sharmila Joshi is of the view that AIA Engineering has target of Rs 269. It is basically the second-largest company in the world, which is high-chrome mill internals. It is in the design, development, manufacturing, installation, servicing of high chromium wear resistant and abrasion parts.
Joshi told CNBC-TV18, "I have picked AIA Engineering. This is a midcap engineering. It is basically the second-largest company in the world, which is high-chrome mill internals. It is in the design, development, manufacturing, installation, servicing of high chromium wear resistant and abrasion parts that are used in cement, mining and thermal power stations. So obviously we can see that there is an increased demand coming from cement as well as mining in India going forward. The notable point about this company is that 75% of its revenue is actually from the replacement market."
She further added, "This is a very good stock. I try to choose a stock here which is insulated from what is happening in the market around you. Even if things do turn a little bad on the Indian front, you would still see a good demand for their product. Their current capacity is about 1,65,000 TPA. They are planning to expand this to another 100,000 TPA, they are also planning a Special Economic Zone (SEZ). If that happens, that will add up for the kicker to this stock. So I think giving this FY11 estimated EPS of 24, I like this stock and I have given it a target of Rs 269."
