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Last Updated : Jan 12, 2017 03:48 PM IST | Source: CNBC-TV18

Prefer AIA Engineering, says Anish Damania

Anish Damania of IDFC Securities is of the view that one may prefer AIA Engineering.

Anish Damania of IDFC Securities told CNBC-TV18, "AIA Engineering is story on the re-bound in the metal space. They are basically into the business of providing crushing materials for this industry and they had forayed into this industry about three or four years ago and now you see their next leg of growth had a little bit of a concern in the last one year because we had seen the metals industry actually go through this downturn. However, now it is once again picking up, so AIA Engineering is among the well managed companies has done well even in this downturn."

"Given the fact that we are seeing an improved momentum in this space, we expect that industry to do a little bit better than what was expected. Therefore you are seeing this renewed enthusiasm coming back into their stock."

"The reflation in the metal industry is there to stay for some more time as some of the economies, larger economies move from monetary stimulus to fiscal stimulus spurring demand. So, to that extent I would say that AIA Engineering well managed company, good cash flows, good ROEs, good ROC and probably will have the prospects of good earnings, so should easily move into higher PE multiple consumption company kind of category," he added.

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First Published on Jan 12, 2017 03:48 pm
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