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News: AIA Engineering reported a weak operational print for Q1FY25. Consolidated volumes came in at 60592 tonnes down 18.2% YoY and 15.2% QoQ. Mining segment volumes came in at 36876 tonnes down 31% YoY and 18% QoQ. Revenues came in at Rs 1004 crore, down 17% YoY and 11.1% QoQ. The only silver lining was the EBITDA Margins came in at 28.8% which expanded by 80 bps YoY. PAT came in Rs 259 crore partially cushioned by higher other income.
Views: Delay in shipments and non-availability of containers lead to miss on volumes and even going ahead H1FY25E looks to be challenging for the company in terms of volumes. This we believe will keep the stock in range given the company has also announced a buyback with maximum price of Rs 5000 per share. However, we like the business model of AIA given is strong leadership the duopoly mill internals market and any severe weakness will provide an entry point.
Impact: Negative