This Smallcap Engineering stock is into manufacturing aerospace components and turbines and others to original equipment manufacturers for the defence, aerospace, and other industries in focus after the company signed an agreement with Arabelle Solution (France) for stationary components worth Rs. 340 crores.
Share Price Movement
In Tuesday’s trading session, the share price of Azad Engineering opened at Rs. 1,678.05 and reached a day’s high of Rs. 1,720 and went up 2.6 percent from its previous close of Rs.1,676.20 apiece. The share has declined since then and is trading at Rs.1,666.95 each, down by 0.55 percent.
What happened
Azad Engineering has signed an agreement to supply with Arabelle Solutions based in France for the supply of critical and highly complex rotating and stationary components. This order is to meet the demand in the nuclear power generation industry.
The value of this supply agreement for its term worth approx Rs. 340 crores (US $40 million). This has enabled a strategic collaboration based on the supply agreement with Arabelle Solutions France. The time period for the execution of the order is 5 years.
Recent developments
Management of Azad Engineering said they have an order book excess of Rs. 4,000 crore recently. Some of the partnerships involve signing a 7-year contract with Rolls Royce to produce critical engine parts for their Defence Aircraft Engines. Signing a contract with the Steam Power business of GE Vernova for the supply of high-complex rotating airfoils for the Nuclear and Thermal Power industry valued at around USD 35 Million and others.
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Financials
In its Q2 FY25 financial results, Azad Engineering reported revenue of Rs.112 crore, a 35 percent increase from Rs.83 crore in the same quarter of the previous year. The Profit After Tax grew by 10.52 percent to Rs.21 crore, up from Rs.19 crore in the same quarter of the previous year.
Company Profile
Azad Engineering Limited was established in 1983 and is a leading Indian manufacturer specializing in high-precision components for the defence, aerospace, oil and gas, and energy sectors. They produce complex products such as turbine blades and airfoil components, catering to global OEMs. Their business model concentrates on quality, innovation, and compliance with industry standards.
By leveraging advanced manufacturing techniques and strategic partnerships, Azad Engineering aims to improve operational efficiency and expand its market presence both domestically and internationally, positioning itself as a key player in the precision engineering landscape.
Written by – Santhosh S
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