Rs 3,300 crore order book: Multibagger defence company signs MoU with Baker Hughes Saudi Arabia
The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 641.95 per share.
Azad Engineering Limited has entered into a non-binding memorandum of understanding (MoU)with Baker Hughes Saudi Arabia (Baker Hughes). The parties have entered into the MoU to enable discussions regarding the potential for an arrangement between the company and Baker Hughes, KSA to, amongst other things, enable the Company to set up a facility to manufacture and supply of precision components, sub-assemblies, assemblies, to cater the requirements within the kingdom of Saudi Arabia. Subject to mutual understanding between the parties, the terms of the arrangement will be detailed in the definitive agreement(s) which may be executed between the parties in this regard. The MoU got exchanged between Azad Engineering Limited and Baker Hughes in the presence of His Royal Highness Prince Abdulaziz bin SalmanAl Saud, Minister of Energy, and in the presence of distinguished officials and committee members of local content forum at Riyadh, Saudi Arabia.
Earlier, the company has signed long term contract & price agreement (LTCPA) with Mitsubishi Heavy Industries Limited, Japan (MHI) for supply of highly engineered & complex rotating and stationary Airfoils for Advanced Gas & Thermal power turbine engines to meet their global demand in the power generation industry. This current Phase of contract, valued at USD 82.89 million or Rs 700 crore is a robust step towards cementing our everlasting strategic relationship with Mitsubishi Heavy Industries Limited, Japan (MHI).
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Azad Engineering Ltd, founded in 1983, is a manufacturer of crucial components for the aerospace, defence, energy and oil and gas industries. Their expertise lies in creating highly engineered, complex and mission-critical parts like 3D rotating airfoils and blades for turbine engines, along with other vital components for gas, nuclear and thermal turbines. They supply these precision-forged and machined parts to leading global original equipment manufacturers (OEMs) including General Electric, Honeywell International, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.
The company has a market cap of over Rs 9,700 crore and as of June 30, 2024, the company has an order book worth Rs 3,300 crore. The stock’s 52-week high is Rs 2,080 and its 52-week low is Rs 641.95. The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 641.95 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.