NSEI:AIAENG

Stock Analysis Report

Executive Summary

AIA Engineering Limited designs, develops, manufactures, and installs high chromium wear, corrosion, and abrasion resistant castings in India and internationally.

Rewards

Earnings are forecast to grow 13.78% per year

Earnings grew by 16.8% over the past year

Pays a reliable dividend of 0.55%

Risk Analysis

No risks detected for AIAENG from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has AIA Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIAENG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

AIAENG

1.4%

IN Machinery

-0.3%

IN Market


1 Year Return

8.3%

AIAENG

-3.4%

IN Machinery

9.9%

IN Market

Return vs Industry: AIAENG exceeded the Indian Machinery industry which returned -11.1% over the past year.

Return vs Market: AIAENG underperformed the Indian Market which returned 9.6% over the past year.


Shareholder returns

AIAENGIndustryMarket
7 Day4.6%1.4%-0.3%
30 Day3.7%8.0%3.5%
90 Day4.3%8.6%5.9%
1 Year8.8%8.3%-2.0%-3.4%11.9%9.9%
3 Year27.0%24.9%7.9%3.8%30.2%23.3%
5 Year60.5%53.4%23.0%16.2%37.1%24.8%

Price Volatility Vs. Market

How volatile is AIA Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AIA Engineering undervalued compared to its fair value and its price relative to the market?

28.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIAENG (₹1642.9) is trading above our estimate of fair value (₹661.15)

Significantly Below Fair Value: AIAENG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIAENG is poor value based on its PE Ratio (26.8x) compared to the Machinery industry average (14.8x).

PE vs Market: AIAENG is poor value based on its PE Ratio (26.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: AIAENG is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AIAENG is overvalued based on its PB Ratio (4.2x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is AIA Engineering forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIAENG's forecast earnings growth (13.8% per year) is above the savings rate (6.5%).

Earnings vs Market: AIAENG's earnings (13.8% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: AIAENG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AIAENG's revenue (14.7% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: AIAENG's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIAENG's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has AIA Engineering performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIAENG has high quality earnings.

Growing Profit Margin: AIAENG's current net profit margins (19%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: AIAENG's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: AIAENG's earnings growth over the past year (16.8%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: AIAENG earnings growth over the past year (16.8%) exceeded the Machinery industry 2.3%.


Return on Equity

High ROE: AIAENG's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AIA Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: AIAENG's short term assets (₹30.6B) exceed its short term liabilities (₹2.9B).

Long Term Liabilities: AIAENG's short term assets (₹30.6B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: AIAENG's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: AIAENG's debt to equity ratio has reduced from 4% to 1.8% over the past 5 years.

Debt Coverage: AIAENG's debt is well covered by operating cash flow (820.6%).

Interest Coverage: AIAENG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AIAENG has a high level of physical assets or inventory.

Debt Coverage by Assets: AIAENG's debt is covered by short term assets (assets are 45.1x debt).


Next Steps

Dividend

What is AIA Engineering's current dividend yield, its reliability and sustainability?

0.52%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.5%markettop25%2.3%industryaverage1.5%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: AIAENG's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: AIAENG's dividend (0.55%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: AIAENG's dividends per share have been stable in the past 10 years.

Growing Dividend: AIAENG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.7%), AIAENG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIAENG's dividends in 3 years are forecast to be well covered by earnings (17.9% payout ratio).


Next Steps

Management

What is the CEO of AIA Engineering's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average board tenure


CEO

Bhadresh Shah (68yo)

0yrs

Tenure

₹11,259,000

Compensation

Mr. Bhadresh Kantilal Shah founded AIA Engineering Ltd. and serves as its Managing Director. Mr. Shah's experience spans over two and a half decades and across continents. He served as Managing Director of ...


CEO Compensation Analysis

Compensation vs Market: Bhadresh's total compensation ($USD158.88K) is below average for companies of similar size in the Indian market ($USD641.04K).

Compensation vs Earnings: Bhadresh's compensation has been consistent with company performance over the past year.


Board Age and Tenure

7.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: AIAENG's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹543,00027 Sep 19
Balkrishna Shah
EntityIndividual
Shares300
Max Price₹1,810.00
Sell₹384,00026 Sep 19
Balkrishna Shah
EntityIndividual
Shares215
Max Price₹1,786.05
Sell₹2,112,00024 Sep 19
Balkrishna Shah
EntityIndividual
Shares1,233
Max Price₹1,712.90
Sell₹1,153,34623 Sep 19
Balkrishna Shah
EntityIndividual
Shares709
Max Price₹1,647.42
Sell₹718,00001 Jul 19
Balkrishna Shah
EntityIndividual
Shares400
Max Price₹1,795.00
Sell₹525,00024 Jun 19
Balkrishna Shah
EntityIndividual
Shares300
Max Price₹1,750.00
Sell₹170,00021 Jun 19
Balkrishna Shah
EntityIndividual
Shares100
Max Price₹1,700.00
Sell₹1,071,83811 Jun 19
Balkrishna Shah
EntityIndividual
Shares600
Max Price₹1,843.98
Sell₹365,00001 Apr 19
Balkrishna Shah
EntityIndividual
Shares200
Max Price₹1,825.00
Sell₹1,056,61011 Mar 19
Balkrishna Shah
EntityIndividual
Shares600
Max Price₹1,830.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bhadresh Shah (68yo)

    MD & Executive Director

    • Compensation: ₹11.26m
  • S. Jetheliya

    Compliance Officer & Company Secretary

    • Kunal Shah

      Executive Director of Corporate Affairs

      • Tenure: 2.2yrs
    • Pradip Shah (69yo)

      Executive Officer

      • Paryank Shah

        Executive Officer

        • R. Gilani

          Executive Officer

          • Compensation: ₹2.72m
        • Yashwant Patel (76yo)

          Whole-Time Director

          • Tenure: 9.2yrs
          • Compensation: ₹1.47m
        • Viren Thakkar

          Chief Financial Officer

          • Tenure: 0.4yrs

        Board Members

        • Rajan Harivallabhdas (71yo)

          Independent Director

          • Tenure: 4.7yrs
          • Compensation: ₹100.00k
        • Sanjay Majmudar (56yo)

          Independent Director

          • Tenure: 12.7yrs
          • Compensation: ₹100.00k
        • Rajendra Shah (71yo)

          Independent Non-Executive Chairman

          • Tenure: 12.5yrs
          • Compensation: ₹75.00k
        • Bhadresh Shah (68yo)

          MD & Executive Director

          • Compensation: ₹11.26m
        • Dileep Choksi (70yo)

          Independent Director

          • Tenure: 6yrs
          • Compensation: ₹45.00k
        • Sundararajan SriKumar (60yo)

          Non-Independent Non Executive Director

          • Tenure: 11yrs
        • Yashwant Patel (76yo)

          Whole-Time Director

          • Tenure: 9.2yrs
          • Compensation: ₹1.47m
        • Khushali Solanki (42yo)

          Non-Executive Non-Independent Director

          • Tenure: 5.2yrs
          • Compensation: ₹60.00k
        • Bhumika Shodhan (39yo)

          Non-Executive Non-Independent Director

          • Tenure: 5.2yrs
          • Compensation: ₹45.00k
        • Janaki Shah (67yo)

          Non-Executive Independent Director

          • Tenure: 0.8yrs

        Company Information

        AIA Engineering Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: AIA Engineering Limited
        • Ticker: AIAENG
        • Exchange: NSEI
        • Founded: 1979
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: ₹164.613b
        • Shares outstanding: 94.32m
        • Website: https://www.aiaengineering.com

        Number of Employees


        Location

        • AIA Engineering Limited
        • 11/12, Sigma Corporates
        • B/h. HOF Showroom
        • Ahmedabad
        • Gujarat
        • 380058
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        532683BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2005
        AIAENGNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2005

        Biography

        AIA Engineering Limited designs, develops, manufactures, and installs high chromium wear, corrosion, and abrasion resistant castings in India and internationally. The company offers grinding media; shell liners; and diaphragms, such as partition walls, discharge diaphragms, drying chamber diaphragms, and dopple rotator diaphragms for tube mill applications; and grinding tables and rolls for vertical mill applications. It also provides castings for pre heaters, kilns, and coolers; and wear parts for cone crushers, hammer crushers, impellor crushers, and vertical shaft impact crushers. In addition, the company offers tube mill and rod mill internal products, including grinding media, inlet/outlet head liners, shell liners, and diaphragms; and wear components for mining applications. Further, it provides tube mill internals, vertical mill parts, and high performance milling systems; and installation and commissioning supervision, and mill optimization technical services for the power industry, as well as wear components for the aggregates industry. Additionally, the company offers mill audit, turnkey installation and commissioning, stock assessment and management, and performance monitoring services. Its products are used in cement, mining, and thermal power generation industries. AIA Engineering Limited was founded in 1979 and is based in Ahmedabad, India. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/26 13:03
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.