Azad Engineering
Azad Engineering
Capital GoodsKey Fundamentals
SmallcapElectrical EquipmentCapital GoodsTapetide Score
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Key Insights
Strengths
1- Company has delivered good profit growth of 63.1% CAGR over last 5 years
Weaknesses
4- Stock is trading at 12.1 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Company has a low return on equity of 9.49% over last 3 years.
- Company has high debtors of 189 days.
Growth Rate
AI Analysis — Bull vs Bear
Azad Engineering has a market capitalisation of about ₹17,539 crore and trades at 126.6x earnings and 11.53x book value. Its growth has been strong, with sales compounding at 37% over 5 years and 29% TTM, and profit compounding at 63% over 5 years and 39% TTM. Against that, return on equity is about 9% over 1, 3 and 5 years, debtor days are 189, and the company pays no dividend.
- Profit has compounded at 63.1% CAGR over 5 years and at 150% over 3 years. That shows the business has scaled up and its operating leverage has improved.
- Sales growth has been steady across periods: 37% CAGR over 5 years, 34% over 3 years and 29% TTM. So the growth isn't coming from one exceptional year.
- TTM profit growth of 39% is ahead of TTM sales growth of 29%. That points to margins widening as the business grows.
- The stock has returned 75% over the past year. The market is backing the growth story, and that can make future capital raises cheaper.
- The current P/E of 126.6 would compress quickly if profits keep growing at the 5-year rate of 63%. At that pace, earnings would roughly double in under 2 years.
- Book value is about ₹1,521 crore (market cap of ₹17,539 crore divided by P/B of 11.53). Much of that equity came from recent fundraising, which could fund capacity growth without heavy borrowing. Debt-to-equity figures aren't available in the data, so this can't be confirmed.
- Return on equity has held at about 9 to 10% (10% over 5 years, 9% over 3 years, 9% last year) even as equity grew. If the new capital starts earning more, ROE could rise from these levels.
- At 126.6x earnings the stock implies an earnings yield of about 0.8%. That leaves little room for error if growth slows from the current 39% TTM profit growth.
- The stock trades at 11.53x book value while earning an ROE of about 9.49%. A multiple that high is usually paired with much higher returns on capital.
- Receivables are high at 189 days. Cash is tied up in working capital, and this raises the risk of collection delays and weaker cash conversion than reported profits suggest.
- The P/E to TTM profit growth ratio is about 3.2 (126.6 divided by 39). The valuation already prices in very strong growth for several years.
- The 3-year profit CAGR of 150% starts from a low base. The more recent 39% TTM growth shows the pace is already slowing, and extrapolating the 3-year figure could overstate what comes next.
- The dividend yield is 0% despite repeated profits. Shareholders' returns depend entirely on the stock price, with no income cushion.
- After a 75% gain in one year, the stock is exposed to sharp swings if growth disappoints or sentiment toward capital goods changes. The long-term record is also short, with no 3, 5 or 10-year stock return data.
- Several metrics are missing from the data: debt-to-equity, ROCE, EPS and the 52-week range. This limits how well balance-sheet risk can be checked at a ₹17,539 crore valuation.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Stretched valuation at 126x P/E Sep 29
The stock trades at a P/E of 126.26x with a market cap of ₹18,812.66 crore after an 82% rally in 2026, so there is little room for execution misses. One of the nine analysts covering the stock rates it 'sell'.
- Weak broader market backdrop Sep 29
On Sep 29, the Sensex fell 503 points to 72,260.09 and the Nifty fell 151 points to 22,626.50 in early trade. A sustained market correction could weigh on high-multiple stocks like Azad.
- Muted one-month price action Sep 29
Even with the 10% intraday jump, the stock was roughly flat over the past month (reported as anywhere from -0.5% to +2%), which suggests it had been consolidating near highs before the GE Vernova news.
- Two new GE Vernova facilities Sep 28
Azad opened two lean manufacturing facilities of 7,600 sq. m each in Tunikibollaram, Hyderabad for GE Vernova's Gas Power business, taking its dedicated GE Vernova sites to three. The move supports its shift from component supplier to platform and integration partner.
- Stock hits 52-week high ₹2,913 Sep 29
Shares rose nearly 10% intraday to ₹2,913 from a previous close of ₹2,723.20, even though the broader market was weak. The stock is up 98.73% over six months and has more than doubled from its Mar 23 low of ₹1,360.
- Goldman Sachs Buy, target ₹3,315 Sep 29
Goldman kept its Buy rating with a ₹3,315 target, citing gas turbine expansion as a key medium-term growth driver and a sizable order book that gives multi-year revenue visibility. Eight of nine analysts rate the stock Buy.
- Strong Q1 FY27 earnings growth Sep 29
Q1 (June 2026) revenue rose 26% to ₹172.5 crore and net profit rose 20.2% to ₹35.7 crore. EBITDA grew 31% to ₹64.3 crore, and margins expanded to 37.28% from 35.84% (the article calls this a contraction, but the numbers show an increase).
- Choice Equity technical buy call Sep 15
Choice Equity recommended buying around ₹2,850 with a ₹3,100 target and a ₹2,700 stop-loss, citing a bullish flag/triangle pattern above the 20- and 50-DMA. The stock has since moved toward ₹2,913.
- 43rd AGM concludes, CEO reappointed Sep 29
Shareholders approved the FY26 financial statements and reappointed key directors, including Rakesh Chopdar, at the AGM on Sep 29, 2026.
- CEO pay revised to ₹528 lakh Sep 7
The AGM agenda proposed reappointing Rakesh Chopdar as CEO for a new five-year term at revised pay of ₹528 lakh per year. Shareholders approved it on Sep 29.
- FY26 BRSR report filed Sep 7
The FY26 Business Responsibility and Sustainability Report filed with BSE and NSE lists a workforce of 2,848 and turnover of ₹5,903.75 million (about ₹590 crore).
TL;DR: Azad Engineering's growth story is strengthening. It now has three dedicated GE Vernova facilities, Q1 revenue grew 26% and EBITDA grew 31%, and the analyst view is mostly bullish, led by Goldman's ₹3,315 target. The main risk is valuation: at about 126x earnings after an 82% rally in 2026, the stock is exposed to execution slips and broader market weakness. The trend is improving, and the next step depends on how quickly the new GE Vernova capacity turns into revenue and on more product and customer qualifications.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 76 | 83 | 89 | 93 | 98 | 112 | 120 | 127 | 137 | 146 | 159 | 162 | 173 |
| Expenses | 50 | 57 | 56 | 61 | 65 | 72 | 78 | 81 | 88 | 93 | 96 | 100 | 108 |
| Operating Profit | 26 | 26 | 33 | 31 | 33 | 40 | 43 | 46 | 49 | 53 | 62 | 61 | 64 |
| OPM % | 35% | 32% | 37% | 34% | 34% | 36% | 36% | 36% | 36% | 36% | 39% | 38% | 37% |
| Other Income | 0 | 11 | 18 | 3 | 1 | 2 | 5 | 3 | 9 | 12 | 8 | 17 | 4 |
| Interest | 10 | 12 | 19 | 6 | 3 | 5 | 6 | 4 | 6 | 7 | 8 | 10 | 10 |
| Depreciation | 5 | 5 | 5 | 5 | 6 | 7 | 7 | 9 | 10 | 12 | 14 | 17 | 19 |
| PBT | 11 | 20 | 27 | 23 | 24 | 30 | 34 | 36 | 42 | 46 | 48 | 51 | 39 |
| Tax % | 35% | 3% | 37% | 34% | 30% | 30% | 30% | 31% | 30% | 30% | 27% | 28% | 10% |
| Net Profit | 7 | 19 | 17 | 15 | 17 | 21 | 24 | 25 | 29 | 33 | 35 | 37 | 35 |
| EPS in Rs | 44.8 | 3.92 | 2.84 | 2.53 | 2.9 | 3.55 | 4.05 | 3.91 | 4.6 | 5.07 | 5.34 | 5.57 | 5.54 |
Profit & Loss
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|
| Sales | 123 | 194 | 252 | 341 | 457 | 603 | 638 |
| Expenses | 95 | 132 | 179 | 224 | 296 | 378 | 398 |
| Operating Profit | 28 | 62 | 72 | 117 | 161 | 225 | 240 |
| OPM % | 23% | 32% | 29% | 34% | 35% | 37% | 38% |
| Other Income | 2 | 5 | 10 | 32 | 11 | 46 | 41 |
| Interest | 5 | 14 | 52 | 47 | 18 | 31 | 35 |
| Depreciation | 9 | 13 | 17 | 21 | 29 | 53 | 61 |
| PBT | 16 | 40 | 13 | 81 | 124 | 187 | 184 |
| Tax % | 29% | 27% | 36% | 27% | 30% | 29% | — |
| Net Profit | 12 | 29 | 8 | 59 | 87 | 134 | 139 |
| EPS in Rs | 76 | 195 | 51.28 | 9.91 | 13.52 | 20.58 | 21.52 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 2 | 2 | 2 | 12 | 13 | 13 |
| Reserves | 89 | 118 | 202 | 633 | 1,381 | 1,516 |
| Borrowings | 88 | 197 | 301 | 39 | 263 | 474 |
| Other Liabilities | 77 | 87 | 85 | 113 | 204 | 197 |
| Total Liabilities | 256 | 404 | 589 | 797 | 1,861 | 2,200 |
| Fixed Assets | 121 | 144 | 217 | 257 | 436 | 779 |
| CWIP | 0 | 24 | 38 | 45 | 80 | 257 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 135 | 236 | 335 | 494 | 1,345 | 1,164 |
| Total Assets | 256 | 404 | 589 | 797 | 1,861 | 2,200 |
Cash Flow
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating | 5 | 21 | -10 | -7 | 54 | -119 |
| Investing | -35 | -114 | -101 | -55 | -918 | -71 |
| Financing | 24 | 96 | 126 | 71 | 877 | 174 |
| Net Cash Flow | -6 | 3 | 15 | 9 | 13 | -16 |
| Free Cash Flow | -16 | -96 | -94 | -78 | -240 | -691 |
| CFO/OP | 43 | 41 | -1 | 7 | 44 | -31 |
Ratios
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Debtor Days | 156 | 140 | 172 | 182 | 178 | 189 |
| Inventory Days | 906 | 1,009 | 1,042 | 1,055 | 1,085 | 2,067 |
| Days Payable | 986 | 748 | 576 | 396 | 459 | 536 |
| Cash Conversion Cycle | 77 | 401 | 638 | 840 | 804 | 1,720 |
| Working Capital Days | -11 | 4 | 120 | 283 | 215 | 304 |
| ROCE % | — | 22% | 16% | 21% | 12% | 12% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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60 extracted metrics + investor summaries across FY21–FY27.
Documents
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Company Information
Incorporated in 1983, Azad Engineering Limited is a manufacturer of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries.[1]
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