Shares of this aerospace component manufacturer gained 5 percent to ₹ 1,332.30 per share on Friday following the approval by the company’s board of directors to establish two subsidiaries specializing in the import and export of engineering products and thermal spray coating services.
At 10:55 a.m., Azad Engineering Ltd. shares were trading at ₹1,327.70 a share, a 4.74 percent increase over the previous close price. The company is valued at ₹7,846 crore on the stock exchange.
According to the company exchange filing, the board of directors approved the incorporation of two subsidiaries of the company, i.e. Azad VTC Private Limited and Azad Prime Private Limited to carry out business in different domains.
Azad VTC Private Limited, incorporated to specialize in Thermal Spray Coating Services, utilizes Plasma Spray technology with a high-velocity fuel system. Catering to diverse industries including Mechanical, Electrical, Electronics, and more, Additionally, to trade essential raw materials such as industrial gases, metallic powders, and laboratory chemicals required for these processes.
Azad Prime Private Limited incorporated to engage in the production, sale, import, and export of primary components for diverse engineering, electrical, and automotive sectors, As well as to undertake manufacturing, designing, processing, trading, and representation of prime components for various markets and industries, including mechanical, electrical, electronic, automotive, and consumer durables.
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 defense, and oil and gas industries, such as General Electric, Honeywell International, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.
Most of the company derived from exports to global OEMs. In H1FY2024 and FY2023, the total revenue was about 89.69%, and 80.38% was derived from Exports. Since its inception, the company has been supplying components to the USA, China, Europe, the Middle East, and Japan.
In the last financial year (FY23), the company made most of its money from the energy industry, getting 87% of its revenue. Aerospace & Defense contributed 9%, while oil & gas and the scrap industry each made up a small portion of 0.05% and 4%, respectively.
The company raised ₹740 crore through its IPO. They generated ₹240 crores by issuing new shares and ₹500 crores by selling existing shares through Offer-For-Sale (OFS) with the company’s promoters.
The company company’s revenue experienced a 48 percent year-on-year revenue increase, rising from ₹60 crore in Q3FY23 to ₹ 89 crore in Q3FY24. Additionally, the net profit has surged by 325 percent, growing from ₹4 crore to ₹17 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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