Azad Engineering share price movement

Azad Engineering's share price hit a new high of ₹3,126, rallying 7 per cent on the BSE in Wednesday’s intra-day deals amid heavy volume. 

In the past two trading days, the stock price of the heavy electrical equipment company surged 15 per cent. Further, in the past six months, the stock zoomed 111 per cent from a level of ₹1,483.90 on the BSE.

At 02:55 PM, Azad Engineering quoted 2 per cent higher at ₹2,974.20, compared to a 0.01 per cent decline in the BSE Sensex. A combined 5.85 million shares representing 9 per cent of total equity of the company changed hands on the NSE and BSE.

ICICI Securities upgrades Azad Engineering rating to 'Buy' from 'Add'

Azad Engineering (Azad) inaugurated two dedicated manufacturing facilities for GE Vernova's gas power business at its Centre of Excellence & Innovation Centre in Hyderabad. 

This is the single-largest capacity addition Azad made in one tranche (15,200 sq.mt.), taking its GE-dedicated footprint to three facilities - the deepest customer integration in its portfolio. With this, 6 of the 7 planned dedicated manufacturing facilities stand commissioned, along with a forging unit. 

Analysts at ICICI Securities expect follow-up large orders from GE, providing another 5-6 years of visibility to the newly commissioned unit. “We are introducing FY29 estimates and rolling over our target multiple to FY29, arriving at a target price of ₹3,200 (55x FY29E EPS),” the brokerage firm said in a note.

Out of the 7 planned facilities, Azad now has only one dedicated facility remaining to be commissioned, which is expected by end-FY27. This marks the start of the execution phase, which will likely drive earnings for the next 2-3 years. 

Meanwhile, analysts expect the company to announce its next leg of growth capex soon to maintain visibility beyond FY30. Azad delivered India's first indigenous turbojet engine to GTRE/DRDO in July 2026. Weapon-integration testing and subsequent certification are expected to pave the way for serial production. With capacity creation now largely behind the company,the  brokerage firm believes the equity story rests on throughput conversion and working capital normalisation.

The management has maintained its guidance of a 25 per cent plus revenue compound annual growth rate (CAGR) with a 32-35 per cent margin. However, analysts believe that, similar to FY26, the company is providing conservative estimates amidst the current geopolitical situation. The brokerage firm has built in a 33 per cent revenue CAGR over FY26–29E, with margins holding at 37-38 per cent (partially benefitting from INR depreciation). Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.