Azad Engineering
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Azad Engineering's recent developments underscore a robust growth trajectory, driven by strategic capacity expansions and significant contract wins, particularly with Mitsubishi Heavy Industries. Management's confidence in achieving over 25% top-line growth for FY27, alongside stable EBITDA margins of 33-35%, reflects a strong operational foundation. The company's order book of INR 6,500 crores enhances revenue visibility, while ongoing investments in new manufacturing facilities position Azad to capitalize on rising demand in the aerospace and energy sectors. Vista's financial outlook aligns with these developments, projecting stable revenue growth and margins, supported by a favorable macro environment characterized by improving manufacturing activity in India. However, potential headwinds include increased finance costs and geopolitical uncertainties affecting expansion timelines. Over the next 12-24 months, key opportunities lie in deepening customer relationships and diversifying revenue streams, particularly in the Oil & Gas segment. Conversely, watchpoints include the capital-intensive nature of the business and the need for ongoing operational efficiencies to maintain margins
Why We Like This Stock
- Strong order book of INR 6,500 crores provides robust revenue visibility
- Management projects over 25% top-line growth for FY27, supported by new contracts and capacity expansions
- Strategic focus on diversifying revenue streams, particularly in the Oil & Gas segment, enhances long-term growth potential
Things To Watch Out For
- Increased finance costs from term and working capital loans may impact net profitability
- Geopolitical tensions could delay expansion plans, particularly in Saudi Arabia
- The capital-intensive nature of the business necessitates ongoing operational efficiencies to sustain margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 341 | 457 | 603 | 644 | 816 |
| Profit Before Tax (Cr.) | 77 | 124 | 187 | 176 | 235 |
| PBT Margin | 22.6% | 27.1% | 3101.2% | 27.3% | 28.7% |
| Net Profit (Cr.) | 59 | 89 | 134 | 125 | 165 |
| Earnings Per Share | 9.1 | 13.8 | 20.6 | 19.2 | 25.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 2,460 | 23-Jul-2026 |
| ICICI Securities | ▲ Buy | 2,610 | 10-Aug-2026 |
Company Overview
Show Company Profile
Azad Engineering Limited manufactures and sells precision-engineered components in India and internationally. The company offers aerospace, including airfoils/blades for aircraft engines and APUs, body valve, housing mount, housing compressor, fan blisk, mixed flow impeller, housing fan, shell and housing, air frames, aero structure, turbine wheel, nozzle, unison ring, lever arm, hydraulic, fuel inerting, flight control, actuating system, and other products, as well as aerospace standard fluid distribution parts. It provides plate butterfly, sealer, shaft, bearing rod, piston, plate, and sealing ring; aft and fore End Skirt, BB2KP Base, B1 Igniter Body1, and B1 Igniter Body-2; last stage airfoil/blade rotary and welding chamfers and last stage airfoil/ blade stationary components for use in nuclear power turbine solution; and fixed, moving, and stage airfoil/blade rotating for thermal power turbines. In addition, the company offers aerospace actuator systems, such as covers, actuators, housings, guides, poppets, nipples, adapters, tees, elbows; and slips, drill bits, hatch covers, frames, and bonnets for oil and gas up and mid-stream sub-systems. The company also offers 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight control, propulsion and actuation which power defence and civil aircraft, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil and thermal power. It serves the aerospace, defense, energy, and oil and gas industries. The company was incorporated in 1983 and is based in Hyderabad, India.