Result Update: AIA Engineering Ltd - SELL - TP Rs.1130 - Kotak

- AIA reported Q1FY18 result below our estimate; higher ferro chrome prices, led to YY margin contraction. Volumes grew backed by all the division -mining, utilities & cement.

- We tweak margin estimate for FY19 to factor in rising ferro chrome prices and marketing costs. We value AIA Engineering at PER 20x FY19 earnings and maintain 'SELL' rating with revised target price of Rs 1130 (Rs 1160 earlier).

Shares of AIA ENGINEERING LTD. was last trading in BSE at Rs.1415.65 as compared to the previous close of Rs. 1400.05. The total number of shares traded during the day was 655 in over 111 trades.

The stock hit an intraday high of Rs. 1423.55 and intraday low of 1392.6. The net turnover during the day was Rs. 921907.

Source : Equity Bulls

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