AIA Engineering Ltd (AIAENG) — share price & stock analysis

Market cap

₹46,623 Cr

P/E

36.6×

ROE

17.0%

vs own 10-yr valuation

96th pctile

Book value / share

₹860

EPS (TTM)

₹137

10-yr median P/E

30.6×

Revenue (FY26)

₹4,420 Cr

Profit after tax (FY26)

₹1,269 Cr

Weinstein stage

Stage 2 (32 weeks)

Data as of

1 July 2026

4 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 21% — a high-quality engine; effectively no debt; margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The market has pre-paid for growth that hasn’t arrived yet

Since Mar 2016, the stock is up 420% while earnings per share grew 182%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 36.6× means the market is paying up — this is the expensive end of its own 10-year history (96th percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (30.6×).

An uptrend that has held for 32 weeks

Every stock cycles through the same four seasons — a flat base (stage 1), an advance (2), a top (3), a decline (4). Right now this one is in Stage 2: advancing, 32 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹3,909 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 40 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 12 years, sales went from ₹2,079 Cr to ₹4,420 Cr (about 7% a year), and profit from ₹326 Cr to ₹1,269 Cr.revenuenet_profit

Margins widened 4.1 points along the way — growth with improving economics.operating_profit

Sales grew 9% last quarter — the 5th straight quarter of growth

Mar 26 sales were ₹1,266 Cr, up 9% on the same quarter last year.revenue

That makes 5 quarters of growth in a row — this is a trend, not a blip.revenue

Margins are widening — 26% → 29% in a year

Of every ₹100 of sales, the company keeps ₹28.6 as operating profit (a year ago it kept ₹26.1).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 20.4% in FY22 and has been rebuilt to 28.4% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (52% → 54%), so this is about input costs and pricing power — the raw-material equation improved.gpm_pctopm_pct

Profit jumped 38% — mostly from income from outside the core business

Mar 26 profit after tax was ₹393 Cr, up 38% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

Most of the profit becomes cash — but not all

Over the last 5 profitable years, the business reported ₹5,142 Cr of profit and collected ₹3,485 Cr of operating cash — about 68% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹592 Cr against ₹1,269 Cr of reported profit — about 47%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 97 days to pay, up from 70. Profit booked, cash pending.debtor_days

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 320 days to go out the door as materials and come back as collected cash — up from 243 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (214 → 270 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹389 Cr (FY14) to ₹1,233 Cr, with another ₹16.0 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹1,146 Cr) fits inside the operating cash the business generated (₹2,657 Cr).investing_cash_flowoperating_cash_flow

Almost no debt — this company cannot be killed by a bad year

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹0 — total borrowings have shrunk from ₹121 Cr to ₹10.0 Cr over the window.borrowings

Every ₹100 kept in the business now earns ₹21 — and the number is rising

Return on capital employed is 21.0% (a year ago: 19.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

The owners aren’t moving

Promoters hold 58.5%, essentially unchanged. Foreign funds own 16.8%, domestic funds 22.0%.promoters_pctfiis_pctdiis_pct

The numbers earn a deeper study — and watch the one thing that matters

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: debt improving (0.07× → 0×).borrowings

Biggest worry: free cash flow falling (₹959 Cr → ₹468 Cr).operating_cash_flow

One dissent worth hearing: our valuation lens reads negative — “its fair-value math says the price sits about 26% above what the numbers justify”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data