AIAENG - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Here’s an in-depth look at AIA Engineering Ltd., assessing its financial footing and investment outlook

🧮 Core Financial Health

Profitability Metrics

ROE: 15.6% and ROCE: 19.1% — solid efficiency; reflects competent management and healthy return generation.

EPS of ₹112 is strong at this price range.

PAT improved from ₹259 Cr to ₹285 Cr — quarterly profit growth of 9.5% is encouraging.

Leverage & Liquidity

Debt-to-equity: 0.07 — extremely low leverage, which boosts balance sheet strength and long-term viability.

Dividend yield: 0.50% — mild, but reflects consistent shareholder returns.

📊 Valuation Insights

Metric Value Interpretation

P/E Ratio 28.3 Slightly undervalued compared to Industry PE: 32.2

P/B Ratio ~4.34 Fair considering Book Value ₹734

PEG Ratio 1.44 Marginally high; suggests growth priced in

Intrinsic Value ⚠️ Not precisely calculated Valuation moderately reasonable given growth and returns

🧠 Business Model & Strategic Advantage

AIA Engineering specializes in manufacturing grinding media used in mining, cement, and utilities — key to process-intensive industries.

Margins benefit from global exposure and niche engineering expertise.

Minimal changes in FII (-0.06%) and DII (-0.01%) holdings — no major institutional reshuffle; sentiment stable.

📉 Technical Sentiment

RSI: 33.8 — nearing oversold territory; may present a tactical accumulation opportunity.

MACD: -29.2 — suggests bearish momentum; potential for short-term weakness.

Current price ₹3,183 is below both DMA 50 and DMA 200 — confirms a downtrend.

Significantly off its 52W high ₹4,950 — ~36% correction; potential value zone brewing.

📍 Suggested Entry Zone & Long-Term View

Entry Zone: ₹3,100–₹3,250 — near support levels and RSI low.

Attractive for long-term holding if you're targeting solid engineering plays with strong fundamentals and global demand.

Avoid short-term chase until technical indicators improve — keep an eye on volume revival and MACD crossover.

Curious how it stacks up against peers like HIL Ltd. or Ferrotec? I can help benchmark or visualize sector tailwinds to guide a thematic playbook. ⚙️📈 Let’s build something bullish.

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