This Smallcap stock is engaged in the business of manufacturing of aerospace components and supplies and turbines and its products to original equipment manufacturers in focus after the company plans to raise Rs. 1,000 crores through QIP.
Price Action
With a market capitalization of Rs. 10,630.59 Crores, the shares of Azad Engineering Limited touched a day’s high of Rs. 1,913.25 per equity share, up 1.51 percent. The stock reiterated from the day’s high and was trading at Rs. 1,786.45 which is 5.21 percent lower than its previous day’s close price of Rs. 1,884.70. The stock delivered a return of 171 percent and outperformed the Nifty Index in the past year.
What Happened
The company’s stock was in focus after the company plans to raise not exceeding than Rs. 1,000 crore through Qualified Institutional Placements (QIP). The fundraising is subjected to regulatory, statutory, and shareholder approval by way of an Extraordinary general meeting. The share issue can be through convertible preference shares or fully or convertible debentures or by way of non-convertible debentures and warrants entitling to warrant holders or combinations.
About the Company
Azad Engineering Limited was founded in 1983. They specialize in manufacturing precision-engineered components for the defence, aerospace, energy, and oil and gas sectors. The company produces critical parts such as turbine blades and airfoils, thus maintaining its quality standards with a “zero parts per million” defect requirement. Azad’s business model focuses on high-tech manufacturing capabilities and innovation, catering to global OEMs by offering customized solutions and maintaining quality control. With state-of-the-art facilities and a commitment to continuous improvement, Azad Engineering aims to establish itself as a leader in the precision engineering market.
Products and services
Their product offerings include turbine blades, airfoils, and critical engine components for commercial and military aircraft, as well as parts for auxiliary power units and hydraulic systems. The company adheres to stringent quality standards, ensuring zero defects in mission-critical applications. Additionally, Azad provides engineering solutions and consulting services to meet the specific needs of global original equipment manufacturers.
Financials & Ratios
Its Revenue from operations improved by 35 percent year on year from Rs. 83 Crores in Q2FY24 to Rs. 112 Crores in Q2FY25, accompanied by a profit of Rs. 19 Crores to a profit of Rs. 21 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 12.12 percent and a return on capital employed (RoCE) of 19.79 percent in FY24. They have a debt-to-equity ratio of 0.4 as of FY24.
Shareholding Pattern
As of September 2024, the promoters of Azad Engineering held a share of 65.90 percent, Foreign Institutional Investors (FII) held around 9.74 percent, Domestic Institutional Investors (DII) held around 5.74 percent and the remaining 18.61 percent was held by Public Investors.
Written by Santhosh S
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