Buy AIA Engineering, target price Rs 3240: ICICI Direct

ICICI Direct has buy call on AIA Engineering with a target price of Rs 3240. The current market price of AIA Engineering is Rs 2701.3.

AIA Engineering Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 25691.93 Crore) operating in Engineering sector.

AIA Engineering Ltd. key Products/Revenue Segments include Castings, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1360.80 Crore, up 23.67 % from last quarter Total Income of Rs 1100.34 Crore and up 47.77 % from last year same quarter Total Income of Rs 920.90 Crore. Company reported net profit after tax of Rs 244.91 Crore in latest quarter.

Investment Rationale
The brokerage expects revenue, EBITDA at AIA to grow at a CAGR of ~14.2%, 20.5%, respectively, in FY22-24E aided by sustained margins in the range of 20-22%. We value AIA at | 3240 i.e. 35x P/E on FY24E EPS

Promoter/FII Holdings
Promoters held 58.47 per cent stake in the company as of 30-Sep-2022, while FIIs owned 18.13 per cent, DIIs 20.43 per cent.