AIA Engineering (AIA) is a niche player in the global grinding mill internal market (grinding media, liners, diagraphs etc.) for cement, mining and thermal power generation industries. The current capacity of the company stands at 340,000 MTPA.
Valuation: Given, AIA’s established global footprint with major mining companies, strong replacement demand in mining segment and capacity expansion, we expect strong revenue/PAT CAGR of 22%/17% for FY18-20E. Hence, we recommend ‘BUY’ rating on the stock with TP of Rs. 1,934 at 30x FY20E EPS.
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