IDFC-SSKI securities says outperformer for AIA Engineering
By ET Bureau |
AIA Engineering
cmp: Rs 170.95
target price: Rs 210
IDFC-SSKI Securities has reiterated its ���outperformer��� rating on AIA Engineering with a price target of Rs 210, post a conference call with the company���s management. ���We believe AIA, the world���s second-largest high chrome mill internals player, to be the key beneficiary of both replacement and capex-led demand in cement, mining and power utilities across the domestic and international markets,��� the institutional broking house said.
���We expect the capacity expansion and inroads into the mining sector to drive strong volume and ensuing earnings growth over the longer term (FY11-12),��� IDFC-SSKI noted. ���Consequently, we believe the valuations at 9.1x FY10 earnings, is quite attractive, considering the oligopolistic nature of the industry and the non-cyclical nature of revenues (75-80% of revenues are replacement driven),��� it added.
cmp: Rs 170.95
target price: Rs 210
IDFC-SSKI Securities has reiterated its ���outperformer��� rating on AIA Engineering with a price target of Rs 210, post a conference call with the company���s management. ���We believe AIA, the world���s second-largest high chrome mill internals player, to be the key beneficiary of both replacement and capex-led demand in cement, mining and power utilities across the domestic and international markets,��� the institutional broking house said.
���We expect the capacity expansion and inroads into the mining sector to drive strong volume and ensuing earnings growth over the longer term (FY11-12),��� IDFC-SSKI noted. ���Consequently, we believe the valuations at 9.1x FY10 earnings, is quite attractive, considering the oligopolistic nature of the industry and the non-cyclical nature of revenues (75-80% of revenues are replacement driven),��� it added.
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