Moneycontrol Be a Pro
Get App
Last Updated : Aug 16, 2019 02:31 PM IST | Source: Moneycontrol.com

Hold AIA Engineering; target of Rs 1785: ICICI Direct

ICICI Direct recommended hold rating on AIA Engineering with a target price of Rs 1785 in its research report dated August 14, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on AIA Engineering


AIA Engineering (AIA) reported revenues at Rs 733.3 crore (vs. estimate of Rs 801.2 crore) with marginal growth of 2.5% on a YoY basis. EBITDA came in at Rs 168.6 crore vs. our estimate of Rs 178.8 crore. However, EBITDA margins improved 130 bps YoY owing to some decline in raw material cost, which is likely to continue and help improve margins for FY20. AIA reported PAT at Rs 139.5 crore, up 33.9% YoY (vs. estimate of Rs 124.3 crore) aided by lower effective tax rate and higher other income. Other income was at Rs 38.6 crore, up 91% YoY (vs. estimate of Rs 25.1 crore).


Outlook


However, working capital management and recovery of volumes from Brazilian customer will be closely monitored. We expect overall revenues, PAT to grow at a CAGR of 11.0%, 8.3%, respectively, in FY19-21E. We believe AIA could benefit significantly from further penetration in mining segment, technical collaboration with EEMS and recovery in non-mining segment. We revise our target price to Rs 1785/share (28x FY21E EPS) and change our rating from BUY to HOLD.


For all recommendations report, 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.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Aug 16, 2019 02:31 pm
Loading...
Sections
Follow us on
Available On