At a Glance (Excerpt)
AIA Engineering, the worldâs second-largest grinding media manufacturer, has crushed and cast its way through FY21â25 with decent profit compounding (14% CAGR), flat revenues, global expansion plans, and⌠anti-dumping duties from Uncle Sam. But can a company with 485 working capital days ever run lean? Or is this just a slow-burn multibagger with steel nerves?
1ď¸âŁ Flashback Begins: What the Hell Do They Even Do?
AIA Engineering makes high-chrome grinding media balls, liners, and diaphragms â sexy words if youâre a cement or mining company.
Basically:
- đˇ They supply parts for crushing, grinding, and pulverizing hard materials.
- đď¸ Customers: Cement, Mining, Thermal Power
- đ Global Reach: 120 countries. If it can be crushed, AIA is probably there.
Oh, and theyâre the second-largest in the world for what they do.
2ď¸âŁ
The 5-Year Scoreboard đ
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (âš Cr) | 2,881 | 3,567 | 4,909 | 4,854 | 4,287 |
| Net Profit (âš Cr) | 566 | 620 | 1,056 | 1,137 | 1,060 |
| OPM % | 23% | 20% | 25% | 28% | 27% |
| EPS (âš) | 60.0 | 65.7 | 111.9 | 120.4 | 112.5 |
| ROCE | 17% | 17% | 25% | 23% | 19% |
| Stock Price (âš) | ~1,600 | ~1,900 | ~2,600 | ~4,200 | 3,385 (now) |
đ§ Takeaway: Profits have doubled, margins have expanded, and EPS has nearly 2xâd since FY21⌠but FY25 sales are actually down YoY. Time to panic? Not yet.
3ď¸âŁ Business Wins, Blunders & Bizarre Things
â Wins
- đ¸ Margins: OPM improved from 23% to 27%. Thatâs not easy in a casting business.
- đ Export Machine: 70%+ revenues from outside India.
- âťď¸ Clean Energy Push: Now 60â70% of power needs to be met via renewables by FY26. ESG bros, rejoice.
â Blunders
- đ Working Capital
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