AIAENG - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

Here’s a comprehensive analysis of AIA Engineering Ltd (AIAENG)

🧾 Core Financials

Profitability & Growth

Quarterly PAT declined from ₹351 Cr to ₹234 Cr, a 5.12% drop, indicating short-term margin pressure.

EPS: ₹107 — strong earnings per share.

ROCE: 18.8% and ROE: 15.3% — solid capital efficiency, above industry norms.

Debt & Liquidity

Debt-to-equity: 0.07 — very low leverage, indicating strong balance sheet.

Dividend Yield: 0.51% — modest but consistent payout.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 29.4 28.6 Fairly valued

P/B Ratio ~4.4 ~3.5 Slight premium to book value

PEG Ratio 1.47 ~1 Slightly expensive on growth

Intrinsic Value ~₹2,800–₹3,000 — Near fair value

Valuation is reasonable, with PEG slightly above ideal, suggesting moderate growth expectations priced in.

🏢 Business Model & Competitive Edge

Core Operations: Manufactures high-chrome mill internals used in cement, mining, and thermal power.

Strengths

Global presence with strong export revenue.

High entry barriers due to technical expertise and long client relationships.

Risks

Profit volatility due to commodity cycles.

Slight decline in institutional holdings (FII/DII) may reflect cautious sentiment.

📉 Technical & Entry Zone

Current Price: ₹3,147

DMA 50/200: ₹3,152 / ₹3,352 — trading near short-term support.

RSI: 54.5 — neutral zone.

MACD: -12.8 — bearish crossover.

Suggested Entry Zone: ₹3,000–₹3,100 range, ideally near ₹3,001 support.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for industrial exposure.

Good for fresh entry if price dips below ₹3,100.

Ideal for long-term only if

Global demand for mining and cement remains strong.

Margins stabilize and profit growth resumes.

Would you like a peer comparison with HEG or Graphite India, or a sector outlook for industrial consumables?

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