Firstcall Research's report on AIA Engineering
The company’s Net sales were at Rs. 6048.11 mn for the 4th quarter of FY15 when compared to Rs. 5766.54 mn for the corresponding quarter last year. Net profit for the March quarter stood at Rs. 1126.86 mn against Rs. 1195.93 mn, when compared with the prior year period. Reported earnings per share of the company stood atRs.11.95 a share compared to earning per share of Rs. 12.68 over previous year period. Profit before interest, depreciation and tax is Rs. 1745.04 million as against Rs. 1771.43 million in the corresponding period of the previous year.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 979.60, the stock P/E ratio is at 19.39 x FY16E and 17.68 x FY17E respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 50.53 and Rs 55.41 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 25% over 2014 to 2017E respectively.
On the basis of EV/EBITDA, the stock trades at 11.40 x for FY16E and 10.56 x for FY17E.
Price to Book Value of the stock is expected to be at 3.80 x and 3.28 x respectively for FY16E and FY17E.
"We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 1125 for Medium to Long term investment", says Firstcall Research Report.
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