Strategy: Buy AIA Engineering in the range of Rs. 1008–1025 for a target price of Rs. 1210.00 with a stop loss below Rs. 908.00 on a closing basis
Opportunity in mining segment 4x that of cement for AIA
Current global consumption of high chrome mill internals (HCMI) that is equally applied in the cement and mining space, is at ~6,00,000 tonnes per annum (TPA). With almost 80% penetration achieved for HCMI in cement space, mining segment provides the next leg up for HCMI players. It is expected that at least 1.2 MTPA mining segment volumes for mill internals can be converted from forged media into HCMI, going ahead. Hence, we believe this will create an opportunity 4x that of current HCMI consumption of 3,00,000 TPA for HCMI players in mining. Key focus areas in mining for AIA are gold and copper metal.