Multibagger Aerospace and Defence Company Secures USD 82.89 Million Long-Term Contract with Mitsubishi Heavy Industries for Advanced Turbine Components; FIIs and DIIs Increase Stake
The company’s shares have delivered an impressive return of over 15 per cent in the past month.
Azad Engineering a Small-Cap company specializes in manufacturing aerospace components and turbines, supplying these high-precision products to OEMs across the aerospace, defence, energy, and oil & gas sectors.
The company has signed a Long-Term Contract and Price Agreement (LTCPA) with Mitsubishi Heavy Industries Limited (MHI), Japan, to provide advanced, complex rotating and stationary airfoils for gas and thermal power turbine engines, supporting MHI’s global demand in the power generation industry. This phase of the contract, valued at approximately USD 82.89 million (around Rs 700 crore), marks a significant step in strengthening the strategic partnership between Azad Engineering and MHI.
Financial Performance
As per the Quarterly Results in June 2024, Azad Engineering recorded a revenue of Rs 98 crore compared to Rs 76 crore representing a growth of around 29.64 per cent YoY. The operating profit for the period stood at Rs 33 crore with a margin of 34 per cent compared to Rs 26 crore with a margin of 35 per cent. The net profit stood at Rs 17 crore compared to a profit of Rs 7 crore representing a gain of around 142 per cent YoY. Looking at the annual performance, the company generated a revenue of Rs 341 crore in FY24, compared to Rs 252 crore in FY23. The operating profit for FY24 was Rs 117 crore, with a net profit of Rs 59 crore compared to a profit of Rs 8 crore.
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Share Performance
At the start of today’s trading session, Azad Engineering opened at Rs 1560.05 per share, compared to Rs 1461.10 per share on the BSE. The company’s shares have rallied over 10 per cent and are currently at around Rs 1632.10 per share on the BSE. The current market capitalization stands at Rs 9,647 crore, and the stock has generated an impressive multibagger YTD return of over 140 per cent.
FIIs and DIIs have increased their stake in the September quarter of FY25.
Disclaimer: The article is for informational purposes only and not investment advice.