⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AIAENG - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | AIAENG | Market Cap | 37,685 Cr. | Current Price | 4,032 ₹ | High / Low | 4,170 ₹ |
| Stock P/E | 29.0 | Book Value | 758 ₹ | Dividend Yield | 0.40 % | ROCE | 18.8 % |
| ROE | 15.3 % | Face Value | 2.00 ₹ | DMA 50 | 3,835 ₹ | DMA 200 | 3,564 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | 0.08 % | PAT Qtr | 435 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 59.9 | MACD | 31.9 | Volume | 50,742 | Avg Vol 1Wk | 84,118 |
| Low price | 3,001 ₹ | High price | 4,170 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.14 |
| 52w Index | 88.2 % | Qtr Profit Var | 110 % | EPS | 139 ₹ | Industry PE | 23.5 |
📊 Core Financials
- Revenue & Profitability: PAT surged from 277 Cr. to 435 Cr., showing strong growth (+110% variance).
- Margins: ROE at 15.3% and ROCE at 18.8% are solid, reflecting healthy efficiency.
- Debt: Debt-to-equity ratio of 0.14 indicates low leverage, a strong balance sheet.
- Cash Flow: Consistent profitability supports sustainable cash generation.
💹 Valuation Indicators
- P/E Ratio: 29 vs. industry average of 23.5 — slightly expensive but supported by growth.
- P/B Ratio: Current price (₹4,032) vs. book value (₹758) → ~5.3x, premium valuation.
- PEG Ratio: 1.45, suggesting growth is priced reasonably.
- Intrinsic Value: Valuation is moderately stretched but justified by strong earnings momentum.
🏢 Business Model & Competitive Advantage
- AIA Engineering specializes in wear-resistant consumables for mining, cement, and power industries.
- Competitive advantage lies in niche expertise, global presence, and strong client relationships.
📈 Technicals & Entry Zone
- DMA 50 (₹3,835) and DMA 200 (₹3,564) show strong support levels below current price.
- RSI at 59.9 indicates healthy momentum; MACD positive suggests bullish trend.
- Entry Zone: Attractive on dips near ₹3,700–3,850 for long-term investors.
- Long-Term Holding: Strong fundamentals justify holding; suitable for compounding wealth in industrial consumables.
✅ Positive
- Strong quarterly PAT growth (+110%).
- Low debt-to-equity ratio (0.14).
- Solid ROE (15.3%) and ROCE (18.8%).
⚠️ Limitation
- P/E ratio (29) is above industry average (23.5).
- Dividend yield of 0.40% is modest despite profitability.
- P/B ratio (~5.3x) indicates premium valuation.
📉 Company Negative News
- FII holdings decreased (–0.09%), showing slight foreign investor caution.
- Stock trading near 52-week high (₹4,170), limiting immediate upside.
📈 Company Positive News
- DII holdings increased (+0.08%), showing domestic institutional support.
- Strong quarterly earnings momentum with PAT rising to 435 Cr.
🏭 Industry
- Industrial consumables sector benefits from global mining and cement demand.
- Industry average P/E (23.5) highlights AIA Engineering’s premium positioning.
🔎 Conclusion
- AIA Engineering is financially strong with consistent profitability and low debt.
- Valuations are slightly stretched but supported by strong earnings growth.
- Recommendation: Accumulate on dips near ₹3,700–3,850. Suitable for long-term investors seeking exposure to industrial consumables with global demand.