Kotak Securities puts ‘Accumulate’ on AIA Engineering
Kotak Securities has downgraded its rating on AIA Engineering to ‘Accumulate’ from ‘Buy’ with unchanged price target to Rs 300.
By ET Bureau |
MUMBAI: Kotak Securities has downgraded its rating on AIA Engineering to ���Accumulate��� from ���Buy��� with unchanged price target to Rs 300.
���We maintain our earning estimates and expect AIA to report consolidated EPS of Rs 24 for FY10E. At Rs 279, the stock trades at fair valuations of 2.7x book value, 11.6x earnings and 10.5x cash earnings based on FY10E. We continue to remain positive on the long term growth prospects of the company due to strong business model with quality products, stable operating margins and expanding markets of mill internals for the mining segment. However due to recent sharp run up in its stock price we recommend investors to look for buying opportunities at lower levels. Thus due to recent sharp run up in stock price and limited upside potential of 8% form the current levels we are downgrading the stock of AIA from BUY to ACCUMULATE with unchanged price target of Rs300,��� the recommendation said.
���We maintain our earning estimates and expect AIA to report consolidated EPS of Rs 24 for FY10E. At Rs 279, the stock trades at fair valuations of 2.7x book value, 11.6x earnings and 10.5x cash earnings based on FY10E. We continue to remain positive on the long term growth prospects of the company due to strong business model with quality products, stable operating margins and expanding markets of mill internals for the mining segment. However due to recent sharp run up in its stock price we recommend investors to look for buying opportunities at lower levels. Thus due to recent sharp run up in stock price and limited upside potential of 8% form the current levels we are downgrading the stock of AIA from BUY to ACCUMULATE with unchanged price target of Rs300,��� the recommendation said.
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