AIA Engineering gains 5% post Q2 results; should you buy, sell or hold?

AIA Engineering stocks advanced 4.87 per cent to touch an intraday high of ₹3,415 apiece on the NSE after the company reported an 8 per cent year-on-year (Y-o-Y) increase in net profit for Q2FY25

AIA Engineering share price: Shares of AIA Engineering surged on Monday, November 10, following the company’s second-quarter results for FY26. The AIA Engineering stock gained 4.87 per cent to touch an intraday high of ₹3,415 on the NSE after the company reported an 8 per cent year-on-year (Y-o-Y) increase in net profit for Q2FY25.

 

Investor interest remained strong, with shares trading at ₹3,360.60 at 11:06 AM, up 3.23 per cent from the previous close of ₹3,256.20. A combined 0.073 million equity shares, worth approximately ₹25.38 crore, changed hands on the NSE and BSE so far today.

AIA Engineering Q2FY26 performance

During Q2FY26, AIA Engineering reported a net profit of ₹277.4 crore, up 8 per cent from ₹256.7 crore in the corresponding quarter of the previous fiscal year. The company’s revenue remained largely stable, rising 0.3 per cent Y-o-Y to ₹1,048 crore from ₹1,044 crore in Q2FY25, according to the exchange filing submitted by the company.

 

 

The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 7.7 per cent to ₹297 crore, compared with ₹275.7 crore in Q2FY25.  ALSO READ | Nykaa shares gain 5% as Q2 profit jumps multifold despite missing estimates

Should you buy, sell or hold AIA Engineering shares?

JM Financial remains bullish on AIA Engineering and has upgraded its rating on the stock to Buy from Hold, citing attractive valuation at 24x FY27 EPS of ₹137, with volume catalysts in play.

 

The brokerage highlighted that the volume growth outlook has improved significantly, with a recent win in Chile opening a new growth frontier, while two other large mines are in advanced stages of trial. Analysts expect volume growth to strengthen in FY27 and beyond.

 

“Reciprocal tariffs have not impacted US volumes so far, reducing potential volume loss risk. We value AIA Engineering at 28x 1HFY27 EPS, arriving at a target price of ₹3,985 (trading at 24x FY27E EPS of ₹137),” the report said.

 

JM Financial added that in the event of a successful US-India trade deal and positive news on the conversion of large mines to high-chrome grinding media, the stock could see a re-rating to up to 35x, with share prices potentially testing new highs in a trading range of 25-35x.