Buy AIA Engineering; target of Rs 1481: Anand Rathi

With gold, copper and iron ore customers expected to be added, AIA Engineering’s volumes, we believe, would register a 16% CAGR over FY16-18. On the lower realizations expected (Rs 101 a kg, down 8% yoy), we anticipate sales recording a 13% CAGR over FY16-18. Our analysis suggests very limited downside on margins from present levels. With the greater likelihood of customers being added, we believe the stock will show re-rating because of the healthy, 15%, earnings CAGR over FY16-18 expected. Hence, we maintain our Buy call, with a revised price target of Rs 1,481 (25x FY18 earnings). For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.