Why Azad Engineering Share Price is Rising

The Indian engineering sector plays a critical role in the nation's industrial and economic development. Known for its diversity, the sector spans everything from heavy machinery to precision engineering.

India's engineering exports have also been growing, driven by demand from multiple industries, including aerospace, automotive, and infrastructure. This growth has attracted substantial investor attention, leading to higher valuations for several companies within the sector.

Azad Engineering, a key player in this space, specialises in high-precision engineering products for industries like aerospace, energy, and defence.

The company is known for delivering advanced engineering solutions and components. Its reputation for quality and technological expertise has made it a trusted supplier to several global companies.

Recently, Azad Engineering share price has gained investor focus, climbing steadily after its latest announcement. The company revealed plans to expand its production capabilities, which could further enhance its market presence and profitability.

Let's explore this announcement to understand the driving factors behind Azad Engineering's share price increase.

Big Order Win

Azad Engineering surged by over 14% on Monday. This rally followed the company's announcement of a long-term contract with Mitsubishi Heavy Industries (MHI) valued at Rs 7 billion (bn).

The contract outlines Azad Engineering's commitment to supply advanced airfoil components for Mitsubishi's high-performance gas and thermal power turbines, meeting the global demand in the power generation sector.

In its recent exchange filing, Azad Engineering detailed that this long-term contract and price agreement (LTCPA) would enable it to manufacture both rotating and stationary airfoils, highly engineered for Mitsubishi's turbines.

Valued at approximately US$ 82.9 million (m), the contract marks a strategic expansion of Azad's relationship with Mitsubishi, securing a solid pipeline for its high-precision components.

This significant contract signals strong future revenue for Azad Engineering, boosting investor confidence. The announcement has spurred buying interest, leading to a rise in share price.

Investors anticipate growth in earnings and sustained demand from its partnership with MHI.

What Next?

Azad Engineering has its clear focus on expanding its manufacturing competencies and strengthening its presence across key sectors, including aerospace, defence, energy, and oil & gas.

Recent acquisitions, including assets from Leo Primecomp and VTC Surface Technologies, have enhanced Azad's capabilities in heavy machining and specialised surface treatments.

This strengthens its ability to deliver highly engineered components for complex applications, furthering its competitiveness in high-precision markets like nuclear and thermal energy.

Azad Engineering has secured significant clients such as Rolls Royce, reflecting a strong and diverse contract portfolio valued at Rs 32 billion (bn).

The company's specialised manufacturing infrastructure, coupled with technical expertise and rigorous qualification processes, establishes high entry barriers, securing Azad's market position and fostering strong competitive advantages.

Azad Engineering's focus on cutting-edge technology, including robotics for precision engineering, underscores its commitment to innovation and manufacturing excellence.

As the company continues to build on these strengths, it is well-equipped to address the evolving needs of its global clients, driving both revenue growth and long-term stability.

The company is also investing in state-of-the-art manufacturing facilities equipped with cutting-edge robotics and precision engineering capabilities.

By concentrating on manufacturing efficiencies and automation, Azad ensures supply chain reliability for its clients, while its focus on collaborative partnerships further strengthens client relationships.

How Azad Engineering Share Price has Performed Recently

In the past five days, Azad Engineering share price has rallied 10.5%. In the last month, it is up 12.5%.

In 2024, so far its share price surged 130.2% and it went up 132.2% in the last year.

The stock touched its 52-week high of Rs 2,080 on 20 June 2024 and a 52-week low of Rs 642 on 17 January 2024.

About Azad Engineering

Incorporated in 1983, Azad Engineering is a manufacturer of aerospace components and turbines.

Azad Engineering operates in aerospace, defence, energy, and oil & gas, partnering with global original equipment manufacturers (OEMs) in these sectors and selling its products across more than 16 countries.

Since beginning core manufacturing in 2008, the company has become a prominent player in these industries. With high-precision manufacturing capabilities in precision forging and machining, Azad Engineering supplies key components to leading OEMs within global supply chains.

The demand for Azad's products is influenced by energy growth and consumption, as well as by the maintenance and service requirements in these sectors.

Azad Engineering has in-house expertise in engineering, design, tooling, and material development, supported by a range of finishing and assembly operations aimed at continuous improvement.

Its advanced process design and years of experience in manufacturing mission-critical engine components allow the company to deliver high-quality, cost-effective solutions for demanding applications.

This focus on technology and innovation, along with globally competitive manufacturing standards, helps differentiate Azad Engineering from its international competitors.

For more details, see the Azad Engineering company fact sheet and quarterly results.

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Happy investing!

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