Azad Engineering Ltd — Primaegis Research Investment Dashboard, May 2026

NSE: AZAD · BSE: 544061 · Capital Goods — Precision Engineering
Azad Engineering Ltd
Mkt Cap: ₹15,000 Cr Sector: Aerospace / Energy Components HQ: Hyderabad IPO: Dec 2023
CMP (16 May 2026)
₹2,315
⬆ STRATEGIC BUY · 3–5yr horizon
FY26 Revenue
₹649 Cr
+35% YoY
FY26 PAT
₹133 Cr
+50% YoY
EBITDA Margin
36–38%
Expanding
Order Book
₹6,500+ Cr
~10x Revenue
P/E (Trailing)
87x
Premium valuation
EV/EBITDA
~48x
Justified by moat
52W Range
₹1,360
– ₹2,350 high
Promoter Stake
55.8%
No pledge
Revenue Growth Trend (₹ Cr)
Revenue: FY22 120 FY23 198 FY24 340 FY25 480 FY26 649 crore.
Margin Expansion (%)
EBITDA margin: FY22 31, FY23 31, FY24 31, FY25 36, FY26 37. PAT margin: FY22 10, FY23 11, FY24 17, FY25 18, FY26 20.
Order Book — Major Contracts
GE Vernova (Energy)
₹1,413 Cr total~6 yr
Mitsubishi Heavy Industries
₹2,038 Cr total8 yr single-source
Siemens Energy
₹811+ Cr5–6 yr
Rolls-Royce (Defence)
Undisclosed7 yr
Arabelle / Baker Hughes (Nuclear)
₹340 Cruntil Dec 2030
Shareholding Pattern (Mar 2026)
Promoters 55.8%, FII 14.8%, DII 11.7%, Public 17.7%.
Promoter 55.8% FII 14.8% DII 11.7% Public 17.7%
Scenario Analysis — Intrinsic Value
Bear Case
₹1,700
25% CAGR · 35% margin
-27% from CMP
Base Case
₹2,450
30% CAGR · 38% margin
+6% from CMP
Bull Case
₹3,200
35% CAGR · 40% margin
+38% from CMP
Peer Comparison
CompanyP/EEBITDA%ROCE
Azad Engineering87x37%~20%
MTAR Technologies48x22%11%
Data Patterns65x28%24%
Sansera Engineering35x18%16%
Bharat Forge38x24%14%
Key Signals
10x revenue order book — exceptional visibility through FY29
Management beats guidance consistently (30% guided → 33-35% delivered)
Single-source supplier with GE Vernova, MHI — durable moat
Zero promoter pledge · CFO/PAT >1x (FY25) — clean earnings
Premium valuation (87x trailing PE) — needs 3yr+ horizon
June 2025 block deal (₹780 Cr, 11% decline) — PE exit absorbed
Nickel/titanium price volatility is primary margin risk
Key-person dependency on founder Rakesh Chopdar
Negative FCF (capex phase) — not a concern but monitor
Entry / Exit Framework
ActionPrice ZoneRationale
Accumulate₹1,900 – ₹2,100Post-correction zone; near DCF base case
Hold₹2,100 – ₹2,600Within fair value–bull case range
Book Partial₹2,600 – ₹2,800Approaching bull case; reduce size
Stop LossBelow ₹1,750Thesis break or broader market decline
⚠ Research summary only. Not investment advice. Not a SEBI-registered recommendation to buy, sell, or hold. Consult a registered advisor before acting on this research.