• AIAE’s 9MFY20 revenue declined by 3% YoY as the company had lost volumes led by environmental issues faced by one its customer (engaged in copper mining).
• The company had indicated the new products are being tested by its customers at their mining locations which could later convert into potential orders.
• The expected EBITDA margins to expand by 170bps to 23.2% YoY in FY20 due to fall in input cost coupled with cost efficiencies.
• Mining volume growth will have an impact due to global demand weakness and lower off-take by few customers, AIAE’s ability to win market share through foraying into key markets and segments gives positive outlook on the company.
• The stock valuation is at 25x multiple on earnings.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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