Buy AIA Engineering, target price Rs 2043: ICICI Securities

ICICI Securities has given a buy rating to AIA Engineering with a target price of Rs 2043. The share price moved up by 0.83 per cent from its previous close of Rs 1764.05. The stock’s last traded price is Rs 1778.65.

AIA Engineering Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 16759.31 Crore) operating in Engineering sector.


Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 580.35 Crore, down 30.11 % from last quarter Sales of Rs 830.32 Crore and down 18.69 % from last year same quarter Sales of Rs 713.74 Crore. The Company reported net profit after tax of Rs 129.33 Crore in latest quarter.

Investment Rationale
Despite the overall challenging environment, AIAE is continuing with its capex plans to fuel long-term growth. It believes volumes will normalise from FY22E. It maintains BUY with an unchanged target price of Rs2,043.

Promoter/FII Holdings
Promoters held 58.5 per cent stake in the company as of June 30, 2020, while FIIs held 21.5 per cent, DIIs 16.9 per cent and public and others 3.1 per cent.