Date:28/06/2007 URL: http://www.thehindubusinessline.com/2007/06/28/stories/2007062850661500.htm

Back AIA Engg: Betting on growth hopes

The Rs 10-face valued AIA Engineering stock has been scaling up on the bourses, in line with what some quarters have been expecting, given the company’s growth visibility, business model and operating margin. AIA, a large high chrome mill internal supplier, is estimated to generate revenue growth of over 40 per cent CAGR as well as profit growth of about 40 per cent CAGR over fiscal 2007-09, brokerages note. This will be chiefly driven by major capacity expansion to 2,65,000 tonnes by fiscal 2009, it is pointed out.

The market for high chrome mill internals is set to expand over the next few years, considering its benefits over conventional forged products.

The stock on Wednesday closed at Rs 1,709.10 on the NSE, up 6.8 per cent, with 3.65 lakh shares making up the volumes. Its 52-week high and low stand at Rs 1,739 and Rs 430 respectively.

Nilanjan Dey