First, you must take note of the fact that Hem Securities, which is piloted by ace stock pickers Vineeta Mahnot & Astha Jain, has an awesome track record of picking multi-bagger stocks.
Between them, these two lovely ladies can boast of top quality stock picks like Vaibhav Global, Tata Elxsi, Suven Life Sciences, Fiem Industries, Va-Tech Wabag etc, which have greatly enriched investors.
Next, you must take note of AIA Engineering’s impressive roster of investors. There are marquee names like Nalanda Capital, Mathews India Fund, David Nadel’s Royce Fund, Prashant Jain’s HDFC Fund, Kenneth Andrade’s IDFC Mutual Fund etc, etc, lending a shoulder to support the stock.
Now, Vineeta Mahnot of Hem Securities has trained her eye on AIA Engineering and recommended a buy with the target price of Rs. 770. In a short but succinct research report, Vineeta Mahnot has explained why AIA is a compelling buy in pithy terms. She says:
“With strong capacity expansion plans; commissioning of Brownfield facility, entry in new segment, new customers; leadership position and low-cost advantage; AIA Engineering Ltd. growth prospects and profitability looks attractive. We believe the company is trading at an attractive valuation at 21.28x and 18.31x of FY14EPS of Rs.30.17 and FY15EPS of Rs.35.07. We initiate a ‘BUY’ on the stock with a target price of Rs.770 (appreciation of about 20%) with the medium to long term investment horizon.”
Now, the all-important question is whether you can afford to ignore a gold-mine like AIA Engineering, especially when it is backed by such savvy investors.
Speaking for myself, I already have a nice little chunk of AIA sitting pretty in my portfolio. Given the run up in the stock, I am presently nibbling on the stock, slowly and steadily, and waiting for a dip to load up more.
If you don’t have AIA in your portfolio, you need to read up all the research reports, come to grips with the stock and take a considered decision.