AIA Engineering Ltd logo

AIA Engineering Ltd

AIAENG NSE

AIA manufactures high-chrome grinding media, liners and diaphragms, collectively known as mill internals. These are used for crushing and grinding operations in the cement, power utility & aggregates and mining industries. [1]

AI Verdict: HOLD Confidence: 5%

AIA Engineering trades at a PE of 33.3x with consistent 17% ROE but faces serious working capital deterioration (261 to 537 days) and weak sales growth of just 3% TTM. The stock's 43% one-year price rally has priced in much of the positivity, making risk-reward unfavorable for fresh entry.

Key Fundamentals

MidcapCastings & ForgingsIndustrial Products
Market Cap
₹45,347 Cr
Volatility
High Risk
P/E Ratio
35.49
EBITDA
₹1,189 Cr
Return on Equity
18.53%
Debt to Equity
0.07
Book Value
₹859.98
EPS
₹119.04
52W High
₹5,060
52W Low
₹3,001.1

Technical Indicators

Key Insights

Strengths

2
  • Company has reduced debt.
  • Company is almost debt free.

Weaknesses

5
  • The company has delivered a poor sales growth of 8.93% over past five years.
  • Earnings include an other income of Rs.485 Cr.
  • Dividend payout has been low at 13.0% of profits over last 3 years
  • Debtor days have increased from 77.7 to 96.5 days.
  • Working capital days have increased from 261 days to 537 days

Growth Rate

Revenue Growth
-5.71% ↘
Net Income Growth
20.07% ↘
Cash Flow Change
28.76% ↗
ROE
-10.38% ↘
ROCE
-12.28% ↘
EBITDA Margin (Avg.)
-23.46% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

AIA Engineering trades at a PE of 33.3x with consistent 17% ROE but faces serious working capital deterioration (261 to 537 days) and weak sales growth of just 3% TTM. The stock's 43% one-year price rally has priced in much of the positivity, making risk-reward unfavorable for fresh entry.

Bull Case 8
  • Consistent ROE of 17% maintained over 1, 3, and 5-year periods indicates strong capital efficiency and earnings quality
  • Company is virtually debt-free, providing significant financial flexibility and resilience during downturns
  • Compounded profit growth of 22% TTM significantly outpaces sales growth, reflecting margin expansion and operating leverage
  • Stock CAGR of 18% over 5 years and 17% over 10 years demonstrates sustained long-term wealth creation
  • 50% of analysts rate the stock a Buy (6 out of 12 ratings), indicating majority consensus tilts positive
  • Market cap of Rs.43,590 Cr provides adequate liquidity and institutional interest for a mid-to-large cap industrial name
  • 10-year compounded profit growth of 12% is respectable for a niche industrial player with cyclical end-markets
  • Debt reduction trajectory further strengthens balance sheet and lowers financial risk during commodity price volatility
Bear Case 8
  • Working capital days have ballooned from 261 to 537 days, signaling severe cash conversion cycle deterioration and potential collection issues
  • Debtor days increased from 77.7 to 96.5 days, indicating worsening receivables quality and customer payment discipline
  • Sales growth of just 3% TTM and negative 3-year CAGR of -3% indicates stagnating topline momentum
  • Other income of Rs.485 Cr inflates reported earnings, masking weaker core operating performance
  • PE of 33.3x is expensive for a company delivering sub-10% sales growth over 5 years (8.93%)
  • Dividend payout of only 13% of profits over 3 years with a yield of 0.35% offers negligible income return to shareholders
  • 25% of analysts rate the stock a Sell (3 out of 12), reflecting meaningful bearish dissent on valuation
  • Price-to-book of 5.27x is elevated for an industrial business with single-digit revenue growth

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 4
  • US anti-dumping duties effective May 26

    Anti-dumping duty of 6.91% and countervailing duty of 3.16% on high chrome grinding media imports from India effective from June 12, 2025, potentially impacting US market competitiveness.

  • Shipping disruption persists May 27

    West Asia conflict caused steep rise in freight rates; although moderated, route changes still add 10-15 days to shipping duration, affecting the two-thirds of revenue from exports.

  • Realization guidance lower than Q4 May 27

    Q4FY26 realization stood at ₹178/kg but management guided sustainable realization at ~₹165/kg, implying potential pricing pressure ahead.

  • Modest volume growth at 2% May 27

    Q4FY26 sales volume grew only 2% YoY to 70,138 MT, indicating volume acceleration has not yet materialized despite strong margin performance.

Positives 8
  • Q4 PAT surges 38% YoY May 27

    Consolidated net profit jumped 37.9% YoY to ₹393 crore in Q4 FY26; revenue grew 9.4% to ₹1,266 crore, making it the strongest and most profitable quarter of the year.

  • EBITDA margin expands 200bps May 27

    Operating EBITDA rose 17.4% YoY to ₹371 crore with margin improving to 29.3% from 27.3%, aided by favorable product mix and operating leverage.

  • Latam mill optimization breakthrough May 27

    Successfully completed trial of new grinding solution with a Latin American miner that could reduce power consumption by ~15%; another trial expected in 2-3 months, opening significant volume growth runway through FY30.

  • ₹16 dividend, 800% payout May 26

    Board recommended ₹16/share dividend (800% on face value) for FY26 with record date September 5, 2026, and payment by October 14, 2026.

  • Stock hits 52-week high May 27

    Shares surged 9% to ₹4,496.30, surpassing previous 52-week high of ₹4,200; ICICI Securities set target of ₹4,915 at 30x FY28E EPS of ₹164 with BUY rating.

  • FY26 profit up 19.7% May 27

    Full-year net profit rose 19.7% to ₹1,269 crore; EBITDA margin expanded 465bps to 39.5% from 34.8% in FY25 on a debt-free balance sheet.

  • Strong order book at ₹868 crore May 27

    Order book stood at ₹868 crore as of April 1, 2026, providing near-term revenue visibility; management expects FY27 to deliver accelerating earnings.

  • Board governance strengthened May 29

    Malay Dalal appointed Independent Director for 5 years with 99.9996% shareholder approval; Bhadresh Shah reappointed as MD for 5 years from October 1, 2026.

Neutral 2
  • ₹18.24 crore block trade on NSE Jun 10

    Institutional block trade of ~40,573 shares executed at ₹4,494.80/share totaling ₹18.24 crore, indicating routine institutional activity without directional signal.

  • Q4 FY26 investor call released May 27

    Audio recording of investor call discussing Q4 and FY26 financial results made available on company website.

TL;DR: AIA Engineering is firing on all cylinders with Q4 FY26 delivering 38% profit growth, significant margin expansion, and a Latam mill optimization breakthrough that could unlock multi-year volume growth. The debt-free balance sheet, ₹868 crore order book, and analyst upgrades support a strong bullish thesis. Key risks include US anti-dumping duties, guided realization decline from ₹178 to ₹165/kg, and still-modest 2% volume growth. The trend is clearly improving, with FY27 expected to be a year of accelerating earnings as commissioned projects stabilize.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,274
1,240
1,295
1,169
1,150
1,020
1,044
1,066
1,157
1,039
1,048
1,067
1,266
Expenses
958
897
913
858
853
731
769
783
855
733
751
777
904
Operating Profit
316
343
382
311
297
289
276
283
302
306
297
290
363
OPM %
25%
28%
30%
27%
26%
28%
26%
27%
26%
29%
28%
27%
29%
Other Income
64
60
62
84
77
83
91
72
98
114
99
132
140
Interest
10
8
7
7
6
6
5
1
8
7
8
16
5
Depreciation
23
24
25
27
25
25
24
26
28
28
28
28
29
PBT
346
371
412
361
344
341
337
327
363
386
360
378
468
Tax %
23%
26%
21%
22%
24%
24%
24%
21%
21%
21%
23%
22%
16%
Net Profit
268
273
324
280
260
259
256
259
285
305
277
293
393
EPS in Rs
28.43
28.87
34.25
29.64
27.62
27.52
27.51
27.78
30.56
32.69
29.73
31.55
42.14
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,182
2,097
2,246
2,445
3,070
2,970
2,881
3,567
4,909
4,854
4,287
4,420
Expenses
1,593
1,484
1,607
1,906
2,406
2,285
2,220
2,841
3,663
3,513
3,134
3,164
Operating Profit
589
613
639
540
664
685
661
726
1,245
1,340
1,154
1,256
OPM %
27%
29%
28%
22%
22%
23%
23%
20%
25%
28%
27%
28%
Other Income
83
101
104
122
121
142
170
156
235
281
343
485
Interest
8
8
8
11
11
10
8
8
25
33
26
37
Depreciation
70
66
72
66
79
98
94
92
93
100
103
113
PBT
594
641
662
585
694
719
730
781
1,362
1,488
1,368
1,592
Tax %
27%
29%
31%
24%
26%
18%
22%
21%
22%
24%
23%
20%
Net Profit
431
457
457
444
511
590
566
620
1,056
1,137
1,060
1,269
EPS in Rs
45.69
48.44
48.43
47
54.16
62.59
60.02
65.7
112
120
114
136
Div. Payout %
18%
37%
17%
17%
17%
43%
15%
14%
14%
13%
14%
12%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
19
19
19
19
19
19
19
19
19
19
19
19
Reserves
2,065
2,304
2,698
2,990
3,495
3,682
4,225
4,736
5,672
6,639
6,908
8,007
Borrowings
99
184
140
123
128
127
193
10
503
461
491
10
Other Liabilities
367
278
333
426
391
334
321
361
437
375
416
502
Total Liabilities
2,549
2,785
3,190
3,559
4,033
4,162
4,758
5,125
6,630
7,494
7,833
8,538
Fixed Assets
551
672
670
671
845
890
811
790
1,003
1,110
1,175
1,233
CWIP
46
38
43
97
60
32
161
210
107
92
77
16
Investments
637
946
960
1,092
1,145
1,418
809
1,055
2,254
3,043
3,919
4,302
Other Assets
1,314
1,128
1,518
1,699
1,984
1,821
2,977
3,070
3,266
3,249
2,663
2,987
Total Assets
2,549
2,785
3,190
3,559
4,033
4,162
4,758
5,125
6,630
7,494
7,833
8,538
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
307
595
231
294
190
679
598
-40
868
903
1,162
592
Investing
-257
-449
-16
-196
-162
-310
-351
101
-1,212
-819
-203
-124
Financing
-83
-208
-91
-158
0
-429
67
-267
395
-211
-743
-660
Net Cash Flow
-33
-63
124
-60
27
-60
314
-205
51
-127
217
-193
Free Cash Flow
125
418
151
157
-9
548
475
-165
675
693
1,027
491
CFO/OP
85
125
61
84
56
121
118
17
94
92
123
69
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
66
75
80
90
84
80
81
82
64
66
70
97
Inventory Days
220
199
263
209
234
242
241
304
215
212
214
270
Days Payable
57
50
68
60
52
42
53
49
46
31
41
47
Cash Conversion Cycle
229
223
275
239
266
279
269
337
233
247
243
320
Working Capital Days
119
107
133
132
154
149
136
191
102
129
118
537
ROCE %
29%
25%
25%
20%
20%
19%
17%
17%
25%
23%
19%
21%

Shareholding Pattern

As of Mar 2026
Promoters 58.50%
DIIs 22.03%
FIIs 16.79%
Public 2.15%
Others 0.54%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.47%
58.50%
58.50%
58.50%
58.50%
58.50%
58.50%
58.50%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
18.17%
17.68%
17.94%
17.21%
17.06%
16.99%
16.66%
16.58%
16.79%
DIIs
19.41%
19.37%
19.28%
19.71%
20.27%
20.11%
20.06%
21.03%
21.01%
20.46%
19.86%
20.05%
20.54%
20.95%
20.84%
21.85%
22.04%
22.03%
22.19%
22.26%
22.03%
Government
0.33%
0.33%
0.31%
0.31%
0.31%
0.31%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
2.33%
2.20%
2.18%
2.13%
2.17%
2.19%
2.23%
2.20%
2.01%
2.05%
2.17%
2.20%
2.26%
2.30%
2.17%
1.98%
1.94%
1.98%
2.11%
2.12%
2.15%
Others
19.47%
19.63%
19.77%
19.39%
18.79%
18.92%
19.24%
18.30%
18.51%
19.02%
19.50%
19.28%
0.55%
0.60%
0.54%
0.46%
0.46%
0.50%
0.54%
0.55%
0.54%
No. of Shareholders
20,927
20,548
21,681
23,435
22,711
25,054
30,038
27,013
37,196
37,942
40,326
43,427
44,943
45,928
50,461
53,263
54,166
55,456
59,297
55,406
59,500

Documents

1
Concall - May 2017 May 2017
2
Concall - Aug 2017 Aug 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - Feb 2018 Feb 2018
5
Concall - Mar 2018 Mar 2018

Frequently Asked Questions about AIA Engineering Ltd

What does AIA Engineering Ltd do?
AIA manufactures high-chrome grinding media, liners and diaphragms, collectively known as mill internals. These are used for crushing and grinding operations in the cement, power utility & aggregates and mining industries. [1]
Where is AIA Engineering Ltd (AIAENG) listed?
AIA Engineering Ltd is listed on the Indian stock exchanges. It is listed on NSE: AIAENG and BSE: 532683. You can view its live share price, financials, and ratios on Tapetide.
Which sector does AIA Engineering Ltd belong to?
AIA Engineering Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of AIA Engineering Ltd?
AIA Engineering Ltd has a market capitalisation of approximately ₹45347.17 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of AIA Engineering Ltd?
The Price-to-Earnings (PE) ratio of AIA Engineering Ltd is 35.49. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of AIA Engineering Ltd?
Over the past 52 weeks, AIA Engineering Ltd has traded between a low of ₹3,001.1 and a high of ₹5,060. This range helps investors understand the stock's price volatility and recent trading levels.
Does AIA Engineering Ltd pay dividends?
Yes, AIA Engineering Ltd has a dividend yield of 0.33%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of AIA Engineering Ltd?
AIA Engineering Ltd has a Return on Equity (ROE) of 18.53%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research AIA Engineering Ltd on Tapetide?
On Tapetide, you can view AIA Engineering Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

AIA manufactures high-chrome grinding media, liners and diaphragms, collectively known as mill internals. These are used for crushing and grinding operations in the cement, power utility & aggregates and mining industries. [1]

Website aiaengineering.com
CEO Mr. Bhadresh Kantilal Shah
Employees 1,306
Listed 2005-12-14
Face Value ₹ 2
Issued Size 9,33,20,370

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