Sachin Tendulkar-backed aerospace and defence company bags new order from R&D organization under DRDO, FIIs increase stake in Q4 FY24
The company’s shares have delivered a multibagger return of around 166 per cent compared to the final IPO issue price.
Azad Engineering Limited is a manufacturer of aerospace components and turbines, supplying its products to original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries. The company has announced the significant order received by the company.
Order Details:
AZAD Engineering has recently secured a prestigious national pride contract from GTRE (Gas Turbine Research Establishment), one of the pioneering Research and Development organizations under DRDO (Defence Research and Development Organisation) and the Ministry of Defence, Government of India, for the design, manufacturing, assembly, and integration of a complete assembled Advanced Turbo Gas Generator Engine. This engine is a critical development for India and will be utilized in various defence applications.
This milestone marks AZAD's entry into propulsion systems, showcasing its growing presence and capabilities in the field. AZAD Engineering will play a vital role as a single-source Industry Partner (IP) to GTRE for the success of this mission. AZAD will start delivering the first batch of fully integrated Turbo Engines by early 2026.
AZAD Engineering has expanded its manufacturing capabilities by vertically integrating a new, highly specialized portfolio of manufacturing and assembly for the Power Generation, Aerospace & Defence, and Oil & Gas sectors. This vertical integration and enhancement in capability enable AZAD to offer end-to-end manufacturing for a complete, assembled Advanced Turbo Engine, creating massive opportunities to build capability for complete propulsion systems solutions for the national and global defence requirements.
Share Performance:
On Thursday, the company's stock closed at around Rs 1392 per share, with a market capitalisation of Rs 8229 crore. Additionally, the stock has delivered a multibagger return of around 166 per cent compared to the final IPO issue price of Rs 524 per share.
Financial performance:
According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 93 crore, representing a growth of 9.30 per cent, and a net profit of Rs 15 crore. In FY24, the company reported a revenue of Rs 341 crore and a net profit of Rs 59 crore, compared to a net profit of Rs 8 crore in the previous year.
Sachin Tendulkar bought 438,120 shares in Azad Engineering at an average price of Rs 114.10 in March 2023 during its pre-IPO round, acquiring a stake worth Rs 4.99 crore.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.