Mar'25 View on AIA Engineering Ltd

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. The stock made a high of 5,000 level in Aug'24 and since then has been making low and just reversed from its long term support of 3100 and now looks to move to 3,600 level on back of following positive data. • EBITDA margin at 26.5% -10 bps/+10 bps yoy/qoq and was inline. • AIA has a sound track record of steady cash generation and attractive ROCEs. • Management remained optimistic on long term demand outlook. • To establish footprint in international market with 50k tonne capacity in China & Ghana. • AIA's Q3FY25 consolidated result was broadly inline with our expectations. • Management is hopeful of improvement in demand situation in next 2-3 quarters.