Buy AIA Engineering; target of Rs 2200: ICICI Direct
ICICI Direct is bullish on AIA Engineering has recommended buy rating on the stock with a target price of Rs 2200 in its research report dated May 26, 2021.
June 10, 2021 / 11:43 AM IST
ICICI Direct's research report on AIA Engineering
AIA Engineering reported consolidated revenues at Rs 860.2 crore (in line with our estimate of Rs 859.6 crore), up marginally by 0.4% YoY owing to decline of 3.3% in volumes YoY. Realisations grew 6% to Rs 107.1/kg YoY. EBITDA came in at Rs 169.2 crore, down 8.4% YoY (vs. our estimate of Rs 190.8 crore). EBITDA margins fell 190 bps YoY to 19.7% (below our estimate of 22.2%) impacted by commodity prices. PAT came in at Rs 133.1 crore (below our estimate of Rs 158.6 crore), declining 6.5% YoY partly impacted by lower other income, which declined 20.4% YoY to Rs 23.2 crore.
We expect overall revenues, EBITDA to grow at 6.5%, 6.2%, respectively, in FY20-23E. We revise our target price to Rs 2200/ share (earlier Rs 2350), 31x FY23E EPS and maintain our BUY rating.
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