Shares of one of the only Indian manufacturers of highly engineered, complex, mission and life-critical high-precision components surged nearly 2 percent on BSE to Rs. 1,492.75 on Thursday, after receiving an order worth $16 million from Honeywell Aerospace, USA.
With a market cap of Rs. 8,597 crores, the shares of Azad Engineering Limited opened in the green at Rs. 1,490, up by nearly 1.7 percent, as against its previous closing price of Rs. 1,465.05.
What’s the news:
Azad Engineering Limited has been awarded a business contract worth nearly $16 million from Honeywell Aerospace ISC, USA.
According to the latest regulatory filings with the stock exchanges, the order involves the manufacturing and supply of highly complex components to meet the global demands in the Aviation industry.
This Phase 1 of the contract, amounting to $16 million over its duration, strengthens Azad’s strategic partnership with Honeywell Aerospace, USA.
Previous Orders:
On 23rd May, Azad Engineering Limited secured a contract from GTRE (Gas Turbine Research Establishment), one of the leading R&D Organisations under DRDO (Defence Research and Development Organisation) and the Ministry of Defence, Government of India.
This contract entails comprehensive manufacturing, assembly, and integration of a fully assembled Advanced Turbo Gas Generator Engine, with the first batch of integrated turbo engines expected to be delivered by early 2026.
On 11th July, the company received a five-year order from Siemens Energy Global GmbH & Co. KG, Germany, to manufacture and supply critical rotating components for their global requirements concerning Advanced Gas and Thermal Turbine Engines.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 29 percent, rising from Rs. 76 crores in Q1 FY24 to Rs. 98 crores in Q1 FY25.
Likewise, during the same period, the company’s net profit increased from
Rs. 7 crores to Rs. 17 crores, representing a growth of around 142.8 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, Azad Engineering reported a Return on Equity (RoE) of 12.1 percent and a return on capital employed (RoCE) of 19.9 percent for the period spanning FY23-24. Further, the net profit margin stood at 17.19 percent during the same timeframe.
Stock Performance:
The stock has delivered multibagger returns of nearly 113.7 percent in one year, while around 8.4 percent of positive returns in the last six months. So far in 2024, the shares of Azad Engineering have given multibagger returns of about 111.7 percent.
About the company:
Incorporated in 1983, Azad Engineering Limited is one of the only Indian manufacturers of highly engineered, complex, mission and life-critical high-precision components.
The company’s product portfolio includes 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight controls, propulsion and actuation which power defence and civil aircraft, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil and thermal power.
Written by Shivani Singh
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