This OEM manufacturer jumped by approximately 2 percent on Tuesday after it announced that it had signed a strategic contract from Baker Hughes. In this article, we will dive at the details of the order.
With a market capitalization of Rs 11,761 crores, the shares of Azad Engineering Ltd are currently trading at Rs 1,821 per share, down by 12.4 percent from its 52-week high of Rs 2,080 per share.
About the signing
Azad Engineering has signed an additional contract to its existing Strategic Supply Agreement (SSA) with Nuovo Pignone Srl, a subsidiary of Baker Hughes Company. Originally executed on March 6, 2024, the new agreement prolongs the partnership by a period of five years.
The new agreement is on the continuous supply of high-complexity critical components, validating the long-term partnership of the two companies in delivering precision-engineered solutions for industrial applications.
Also read: Bulk Deal: Defence stock crashes 7% after promoter offloads 13.34 lakh shares
Financial Highlights
Azad Engineering reported a revenue of 120 crores in Q3 FY25, up by 34.83 percent from its Q3 FY24 revenue of Rs 89 crores. It reported a net profit growth of 41 percent to Rs 24 crores in Q3 FY25 from Rs 17 crores in Q3 FY24.
The company delivered an ROE and ROCE of 12.12 percent and 19.89 percent and is currently trading at a P/E of 153.0,8x much higher than its industry average of 94.75x.
About the company
Azad Engineering Limited is engaged in designing and producing precision-engineered aerospace, defense, energy, and oil & gas industry components in India and worldwide. The company offers turbine blades, nozzles, impellers, actuators, and fluid distribution components for aircraft engines, missile systems, and power turbines. It also offers intricate components for nuclear and thermal power solutions, as well as critical subsystems for midstream and upstream oil & gas operations.
Written by Satyajeet Mukherjee
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