AIA manufactures corrosion resistant chrome castings used in mills - especially those in the cement and mining sectors. As such, AIA’s business depends on the performance of its user industries. The company’s revenues have compounded at the rate of 22.8 per cent annually during the last five years.
In its most recent quarter ended Dec 2011, AIA’s volumes hit record levels. Realisations were up too on the back of price hikes undertaken in the first half of the year. Capacity expansion and a wider product offering outside the iron ore industry (like copper, gold, etc) is expected to help the company keep its momentum buzzing FY13 onwards.
The company’s ROCE has averaged 30 per cent in the last five years while earnings have compounded at 27 per cent. A clean balance sheet and a five year PEG ratio of only 0.65 make AIA a worthy buy.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
