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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

AIA Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:32 pm

Market Cap 32,113 Cr.
Current Price 3,407
High / Low4,950/3,335
Stock P/E30.4
Book Value 678
Dividend Yield0.47 %
ROCE22.7 %
ROE18.3 %
Face Value 2.00
PEG Ratio1.96

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for AIA Engineering Ltd

Competitors of AIA Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Intrux Ltd 159 Cr. 462647/23018.0 1793.68 %17.0 %12.3 % 10.0
Carnation Industries Ltd 4.86 Cr. 14.014.0/5.97 8.390.00 %%% 10.0
Captain Technocast Ltd 419 Cr. 410410/96.281.9 26.90.00 %19.4 %16.9 % 10.0
Nelcast Ltd 973 Cr. 113179/10531.5 61.30.36 %10.1 %8.05 % 2.00
Kirloskar Industries Ltd 4,809 Cr. 4,6006,699/3,25624.6 6,6430.28 %10.7 %5.41 % 10.0
Industry Average5,914.78 Cr1,041.7838.80808.170.64%19.43%14.17%7.00

All Competitor Stocks of AIA Engineering Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7408858481,0931,0801,3291,2271,2741,2401,2951,1691,1501,020
Expenses5687236878678331,017861958897913858853731
Operating Profit172162161226247312366316343382311297289
OPM %23%18%19%21%23%23%30%25%28%30%27%26%28%
Other Income403642392132118646062847783
Interest113-01451087766
Depreciation24222521212524232425272525
Profit before tax187175176244246316454346371412361344341
Tax %20%21%21%20%22%22%22%23%26%21%22%24%24%
Net Profit149138139194191245352268273324280260259
EPS in Rs15.8314.5914.6520.6320.1925.9637.3728.4328.8734.2529.6427.6227.52

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4171,7502,0792,1822,0972,2462,4453,0702,9702,8813,5674,9095,035
Expenses1,1391,4371,5731,5931,4841,6071,9062,4062,2852,2202,8413,6633,628
Operating Profit2773145065896136395406646856617261,2451,407
OPM %20%18%24%27%29%28%22%22%23%23%20%25%28%
Other Income1321283101104122121142170156235304
Interest81010888111110882530
Depreciation29343870667266799894929396
Profit before tax2532914605946416625856947197307811,3621,584
Tax %28%27%29%27%29%31%24%26%18%22%21%22%
Net Profit1812123264314574574445115905666201,0561,217
EPS in Rs19.1322.3534.4545.6948.4448.4347.0054.1662.5960.0265.70111.95128.92
Dividend Payout %16%18%17%18%37%17%17%17%43%15%14%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)17.13%53.77%32.21%6.03%0.00%-2.84%15.09%15.46%-4.07%9.54%70.32%
Change in YoY Net Profit Growth (%)0.00%36.65%-21.56%-26.18%-6.03%-2.84%17.93%0.37%-19.53%13.61%60.78%

AIA Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:10%
3 Years:19%
TTM:-13%
Compounded Profit Growth
10 Years:13%
5 Years:19%
3 Years:28%
TTM:-13%
Stock Price CAGR
10 Years:11%
5 Years:16%
3 Years:22%
1 Year:-3%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:18%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:45 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital19191919191919191919191919
Reserves1,3991,7202,0652,3042,6982,9903,4953,6824,2254,7365,6726,6396,381
Borrowings1611219918414012312812719310503461126
Other Liabilities266373367278333426391334321361437375437
Total Liabilities1,8452,2332,5492,7853,1903,5594,0334,1624,7585,1256,6307,4946,963
Fixed Assets3773895516726706718458908117901,0031,1101,086
CWIP3210046384397603216121010792167
Investments1945296379469601,0921,1451,4188091,0552,2543,0432,925
Other Assets1,2421,2151,3141,1281,5181,6991,9841,8212,9773,0703,2663,2492,785
Total Assets1,8452,2332,5492,7853,1903,5594,0334,1624,7585,1256,6307,4946,963

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +163452307595231294190679598-39868903
Cash from Investing Activity +-107-420-257-449-16-196-162-310-351101-1,212-819
Cash from Financing Activity +74-91-83-208-91-158-0-42967-268395-211
Net Cash Flow129-59-33-63124-6027-60314-20551-127

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow277.00153.00385.00490.00429.00499.00417.00536.00558.00468.00716.00-502.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days717666758090848081826466
Inventory Days225161220199263209234242241304215212
Days Payable636157506860524253494631
Cash Conversion Cycle233176229223275239266279269337233247
Working Capital Days146106121129152150168161160191140164
ROCE %21%28%29%25%25%20%20%19%17%17%25%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters58.47%58.47%58.47%58.47%58.47%58.47%58.47%58.47%58.47%58.47%58.47%58.47%
FIIs19.13%18.79%18.08%18.13%18.02%17.78%18.04%18.05%18.50%18.29%18.16%17.68%
DIIs19.46%19.88%20.44%20.37%20.43%20.72%20.69%20.93%20.29%20.46%20.53%20.94%
Government0.31%0.31%0.31%0.31%0.30%0.30%0.30%0.00%0.00%0.00%0.01%0.01%
Public2.64%2.55%2.71%2.72%2.77%2.73%2.49%2.56%2.74%2.78%2.82%2.91%
No. of Shareholders21,68123,43522,71125,05430,03827,01337,19637,94240,32643,42744,94345,928

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan3,385,2032.651250.88621,3002024-11-20444.86%
SBI Equity Hybrid Fund2,926,6461.811081.44621,3002024-11-20371.05%
Kotak Flexicap Fund - Regular Plan1,085,7201401.19621,3002024-11-2074.75%
SBI Large & Midcap Fund740,0001.86273.44621,3002024-11-2019.11%
HSBC Midcap Fund621,3002.89229.58621,3002024-11-200%
SBI Long Term Equity Fund619,4491.47228.9621,3002024-11-20-0.3%
Kotak Equity Opportunities Fund - Regular Plan462,7631.14171621,3002024-11-20-25.52%
Tata Large & Mid Cap Fund - Regular Plan350,0002.52129.33621,3002024-11-20-43.67%
Tata Large & Mid Cap Fund - Regular Plan350,0002.52129.33621,3002024-11-20-43.67%
ICICI Prudential MidCap Fund326,4062.79120.61621,3002024-11-20-47.46%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)120.40111.9565.7060.0262.59
Diluted EPS (Rs.)120.40111.9565.7060.0262.59
Cash EPS (Rs.)131.02121.8875.1469.8972.96
Book Value[Excl.RevalReserv]/Share (Rs.)706.95604.35505.03450.92393.40
Book Value[Incl.RevalReserv]/Share (Rs.)706.95604.35505.03450.92393.40
Revenue From Operations / Share (Rs.)514.60520.43378.13305.50316.04
PBDIT / Share (Rs.)171.24156.4093.0187.7387.17
PBIT / Share (Rs.)160.61146.5483.2477.8176.79
PBT / Share (Rs.)157.60144.4182.8377.3676.20
Net Profit / Share (Rs.)120.39112.0165.3759.9862.59
NP After MI And SOA / Share (Rs.)120.40111.9565.3860.0262.59
PBDIT Margin (%)33.2730.0524.5928.7127.58
PBIT Margin (%)31.2128.1522.0125.4724.29
PBT Margin (%)30.6227.7421.9025.3224.11
Net Profit Margin (%)23.3921.5217.2819.6319.80
NP After MI And SOA Margin (%)23.3921.5117.2919.6419.80
Return on Networth / Equity (%)17.0518.5512.9613.3315.95
Return on Capital Employeed (%)22.4524.0116.2817.0119.06
Return On Assets (%)15.1515.9212.0311.8914.18
Total Debt / Equity (X)0.060.080.000.040.02
Asset Turnover Ratio (%)0.680.700.640.560.64
Current Ratio (X)8.016.0712.267.788.67
Quick Ratio (X)6.404.688.236.086.52
Inventory Turnover Ratio (X)1.622.172.501.801.69
Dividend Payout Ratio (NP) (%)0.008.0313.760.0043.13
Dividend Payout Ratio (CP) (%)0.007.3811.970.0037.00
Earning Retention Ratio (%)0.0091.9786.240.0056.87
Cash Earning Retention Ratio (%)0.0092.6288.030.0063.00
Interest Coverage Ratio (X)56.9173.38227.83192.74147.15
Interest Coverage Ratio (Post Tax) (X)41.0153.55161.14132.77106.65
Enterprise Value (Cr.)36842.9527074.0614856.8218114.2112987.41
EV / Net Operating Revenue (X)7.595.524.176.294.36
EV / EBITDA (X)22.8118.3516.9421.8915.80
MarketCap / Net Operating Revenue (X)7.615.584.306.704.37
Retention Ratios (%)0.0091.9686.230.0056.86
Price / BV (X)5.554.813.234.553.52
Price / Net Operating Revenue (X)7.615.584.306.704.37
EarningsYield0.030.030.040.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of AIA Engineering Ltd as of November 22, 2024 is: 3,789.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, AIA Engineering Ltd is Undervalued by 11.23% compared to the current share price 3,407.00

Intrinsic Value of AIA Engineering Ltd as of November 22, 2024 is: 4,378.79

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, AIA Engineering Ltd is Undervalued by 28.52% compared to the current share price 3,407.00

Last 5 Year EPS CAGR: 15.55%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.42%, which is a positive sign.
  2. The company has higher reserves (3,692.77 cr) compared to borrowings (182.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.38 cr) and profit (493.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 149.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 250.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in AIA Engineering Ltd:
    1. Net Profit Margin: 23.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.45% (Industry Average ROCE: 19.43%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.05% (Industry Average ROE: 14.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 41.01
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 6.4
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 30.4 (Industry average Stock P/E: 38.8)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

AIA Engineering Ltd. is a Public Limited Listed company incorporated on 11/03/1991 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29259GJ1991PLC015182 and registration number is 015182. Currently Company is involved in the business activities of Casting of metals. Company’s Total Operating Revenue is Rs. 3081.57 Cr. and Equity Capital is Rs. 18.86 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Castings/Foundry115, GVMM Estate, Odhav Road, Ahmedabad Gujarat 382415ric@aiaengineering.com
http://www.aiaengineering.com
Management
NamePosition Held
Mr. Rajendra S ShahChairman(NonExe.&Ind.Director)
Mr. Bhadresh K ShahExecutive & Managing Director
Mr. Yashwant M PatelWhole Time Director
Mrs. Khushali S SolankiNon Exe.Non Ind.Director
Mrs. Bhumika S ShodhanNon Exe.Non Ind.Director
Mr. Sanjay S MajmudarIndependent Director
Mr. Dileep C ChoksiIndependent Director
Mr. Rajan HarivallabhdasIndependent Director
Mrs. Janaki Udayan ShahIndependent Director

FAQ

What is the latest intrinsic value of AIA Engineering Ltd?

The latest intrinsic value of AIA Engineering Ltd as on 21 November 2024 is ₹3789.58, which is 11.23% higher than the current market price of ₹3,407.00.

What is the Market Cap of AIA Engineering Ltd?

The Market Cap of AIA Engineering Ltd is 32,113 Cr..

What is the current Stock Price of AIA Engineering Ltd as on 21 November 2024?

The current stock price of AIA Engineering Ltd as on 21 November 2024 is ₹3,407.

What is the High / Low of AIA Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of AIA Engineering Ltd stocks is 4,950/3,335.

What is the Stock P/E of AIA Engineering Ltd?

The Stock P/E of AIA Engineering Ltd is 30.4.

What is the Book Value of AIA Engineering Ltd?

The Book Value of AIA Engineering Ltd is 678.

What is the Dividend Yield of AIA Engineering Ltd?

The Dividend Yield of AIA Engineering Ltd is 0.47 %.

What is the ROCE of AIA Engineering Ltd?

The ROCE of AIA Engineering Ltd is 22.7 %.

What is the ROE of AIA Engineering Ltd?

The ROE of AIA Engineering Ltd is 18.3 %.

What is the Face Value of AIA Engineering Ltd?

The Face Value of AIA Engineering Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in AIA Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE