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Last Updated : Aug 19, 2016 04:40 PM IST | Source: Moneycontrol.com

Buy AIA Engineering; target of Rs 1481: Anand Rathi

Anand Rathi is bullish on AIA Engineering has recommended buy rating on the stock with a target price of Rs 1481 in its research report dated August 17, 2016.

 
 
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Anand Rathi's research report on AIA Engineering

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).

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First Published on Aug 19, 2016 04:40 pm
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