Economic Times reported that AIA Engineering's growth will boost with it gradually gaining traction in the mining and power industry.
The company is in a very niche business of manufacturing of impact abrasion and wear resistant high chrome mill internal products used by cement companies and are the second biggest company in the world in this business.
However,the company is expanding in the mining sector and has already tied up with the global giants such as Rio Tinto,BHPC and Wale.This will boost the company's performance in the coming years.
Its stock has outperformed the capital goods index in each of the last four year.At present its trading at a price to earning multiple of 20,which is quite attractive given its performance over the last couple of years.
Unlike other engineering companies which are grappling with various issues,AIA's sales has grown at 19%in the last two years,while maintaining an operating margin of 20%.
