Shares of this midcap company surged upto 5 percent in Monday’s trading session after the board plans to consider buyback of equity shares. In one year, the stock has delivered more than 30 percent returns to its shareholders.
Price Movement:
With a market capitalization of Rs. 42,428 crores, the shares of AIA Engineering Ltd started Monday’s trading session on a higher note at Rs. 4,418.70 compared to its previous close of Rs. 4,39.55. During the trading session, the shares hit a high of Rs. 4,699, gaining around 5 percent and are currently trading at Rs. 4,510 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that the meeting of the Board of Directors is scheduled to be held on Wednesday, August 07, 2024, to consider a proposal for buy-back of Equity Shares of the company. If the buyback is approved, it will mark AIA Engineering’s first-ever buyback.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 2 percent from Rs. 1,169 crores during the December quarter to Rs. 1,150 crores in the March quarter. On the other hand, the net profits declined by 7 percent from Rs. 280 crores to Rs. 260 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.05 percent and a return on capital employed (RoCE) of 22.45 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was 23.39 percent.
Capacity:
AIA Engineering Ltd currently has a production capacity of 440,000 metric tons (MT) of high chrome mill internals annually. The company has recently expanded its total production capacity to 522,000 MT, making it one of the largest producers of high chrome mill internals globally.
Their facilities are strategically located in various regions, including Ahmedabad, Nagpur, Bengaluru, and Trichy, and they focus on producing high-quality wear-resistant parts for the cement, mining, and quarry industries.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters hold 58.47 percent of the shares, Foreign Institutional Investors (FIIs) own 17.68 percet, Domestic Institutional Investors (DIIs) hold 20.94 percent, and Retail Investors possess the remaining 2.91 percent.
Company Profile:
AIA manufactures high-chrome grinding media, liners and diaphragms, collectively known as mill internals. These are used for crushing and grinding operations in the cement, power utility & aggregates and mining industries.
Written By Vaibhav Patil
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