Shares of this aerospace component manufacturer gained 5 percent to ₹1,779.95 per share on Friday after the company signed a 5-year contract with Siemens Energy Global to manufacture thermal turbine engines.
At 10:55 a.m., Azad Engineering Ltd. shares were trading at ₹1,742.80 a share, a 2.82 percent increase over the previous close price. The company is valued at ₹10,460 crore on the stock exchange.
What News: Azad Engineering Ltd announced in an exchange filing that it has secured a 5-year contract from Siemens Energy Global CmtH & Co. KG, Germany, to manufacture and supply critical rotating components for Siemens global needs in advanced gas and thermal turbine engines.
About the company: Azad Engineering Limited manufactures aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries.
The company’s clientele includes global OEMs across the energy, aerospace and defence, and oil and gas industries, such as General Electric, Honeywell International, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.
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Azad Engineering Ltd was listed on December 28, 2023. The company raised ₹740 crore through its IPO. From the day of listing to till date, the stock has gained 161%.
The company generates 84% of its revenue from the Energy and Oil & Gas sector and 13% from Aerospace and Defence contracts. Additionally, it exports products to over 15 countries worldwide.
In January 2024, Azad Engineering Ltd signed a 7-year term agreement with Rolla Royce to produce and supply intricate components for defense aircraft engines.
Financials: The Azad Engineering revenue experienced a 35 percent year-on-year revenue increase, rising from ₹252 crore in FY22-23 to ₹ 341 crore in FY23-24. Additionally, the net profit has surged by 635 percent, growing from ₹8 crore to ₹59 crore.
Sachin Tendulkar owns about 450,000 shares of the company, and he bought them at an average price of ₹110 per share. Azad Engineering Ltd shares have gained 87 percent in the last three months.
Written by Omkar Chitnis
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