AIA Engineering: Growth Prospects and Capacity Expansion

AIA Engineering Limited, established in 1991, is a notable company involved in creating, developing, manufacturing, installing, and servicing wear-resistant castings made of high chromium. These specialized products cater specifically to the cement, mining, and thermal power industries, showcasing the company’s ability to meet diverse market needs. The company collaborates with customers for 18 to 24 months to develop mine sites, conducting trials and determining the optimal chrome grade for specific operating conditions. Due to these advantages, the company anticipates an increase in market share for high chrome over time. The company operates in key regions like North America, Latin America, Australia, and Brazil, continually acquiring new customers in these areas. As of now, the company’s installed capacity is 4,40,000 TPA, set to increase to 5,20,000 TPA by March 2025. AIA Engineering has four manufacturing facilities located in Ahmedabad (for grinding media), Nagpur (for centrifugal castings), Bengaluru (for grinding media), and Trichy (for grinding media). The rating for the company is “Accumulate,” with a target price of Rs 4909, indicating a potential upside of 33% based on a PE multiple of 28X to FY26E EPS of Rs 175.35.

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