Azad Engineering Limited (AZAD) AI Stock Analysis

• Market Cap: ₹101.17B
• Dividend Yield: N/A
• Average Volume (3M): 26.96K
• Price to Earnings (P/E): 87.7
• Beta (1Y): 2.01
• Revenue Growth: 35.25%
• EPS Growth: 51.17%
• Country: IN
• Employees: 1,212
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 5.50
• Shares Outstanding: 64,581,740
• 10 Day Avg. Volume: 14,118
• 30 Day Avg. Volume: 26,964
• PEG Ratio: 3.07
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 17.67
• P/FCF Ratio: -34.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,867.00 ▲(10.55% Upside)

Azad Engineering Limited's strong financial performance, particularly in revenue growth and profitability, is a key strength. However, the high P/E ratio suggests overvaluation, and cash flow management needs improvement. Technical indicators show positive momentum but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitiveness.

Market Position

Strong market position in key sectors like aerospace and oil & gas enhances competitive advantage and ensures stable demand for products.

Profit Margins

High profit margins demonstrate effective cost control and pricing power, contributing to financial health and shareholder value.

Negative Factors

Cash Flow Management

Negative free cash flow can strain liquidity and limit investment capacity, necessitating improved cash management for long-term stability.

Increasing Liabilities

Rising liabilities could impact financial flexibility and increase risk, potentially affecting the company's ability to fund future growth.

Capital Expenditures

High capital expenditures, while potentially beneficial for growth, can pressure cash reserves and require careful planning to avoid financial strain.

Azad Engineering Limited Business Overview & Revenue Model

Company Description

Azad Engineering Limited manufactures and sells engineered precision forged and machined components in India. The company offers body valve, housing mount, housing compressor, fan blisk, mixed flow impeller, housing fan, shell and housing, aero structure, turbine wheel, nozzle, unison ring, lever arm, hydraulic, fuel inerting, flight control, actuating system, and other products. It also provides airfoils/blades and components; various defense systems and critical components for missiles; industrial aerospace standard fluid distribution parts; rotors and stators, combustion components, and engine accessories, as well as fasteners and hardware, and special machined parts; and drill bits, slips, reamers, flex shafts, bonnets, frames, safety valves, rings, and hatch cover products. The company serves aerospace and defense, energy, and oil and gas industries. It also exports its products to Japan, the United States, Europe, the Middle East, the United Kingdom, and internationally. The company was incorporated in 1983 and is based in Hyderabad, India.

How the Company Makes Money

AZAD generates revenue primarily through the sale of its engineering products and services. Its key revenue streams include direct sales of precision components to original equipment manufacturers (OEMs), contract manufacturing services for custom engineering projects, and long-term maintenance and support agreements. The company also benefits from strategic partnerships with major industry players, which enhance its market reach and allow it to participate in larger projects. Additionally, AZAD invests in research and development to create innovative solutions that meet evolving market demands, further driving revenue growth.

Azad Engineering Limited Financial Statement Overview

Summary

Azad Engineering Limited shows strong revenue growth and profitability with high margins. The balance sheet is stable with a strong equity position, though increasing liabilities need monitoring. Cash flow management is a concern due to negative free cash flow from high capital expenditures.

Income Statement

Azad Engineering Limited demonstrates strong revenue growth, with a significant increase from the previous year. The company achieves high gross and net profit margins, reflecting efficient cost management and robust profitability. EBIT and EBITDA margins are also strong, indicating solid operational performance. However, the rapid revenue growth should be monitored to ensure sustainability.

Balance Sheet

The balance sheet shows a strong equity position, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio is manageable, suggesting prudent leverage levels. Return on equity is impressive, reflecting effective use of shareholders' funds. However, the increase in total liabilities requires careful monitoring.

Cash Flow

While operating cash flow has improved, free cash flow remains negative, primarily due to significant capital expenditures. The operating cash flow to net income ratio is positive, indicating satisfactory cash generation relative to net income. However, the company faces challenges with free cash flow, necessitating attention to cash management.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.99B	4.68B	3.41B	2.52B	1.93B	1.21B
Gross Profit	4.34B	4.04B	2.92B	1.84B	635.42M	309.71M
EBITDA	1.94B	1.72B	1.34B	739.56M	640.97M	294.59M
Net Income	999.12M	873.18M	585.80M	84.73M	294.57M	115.00M
Balance Sheet
Total Assets	0.00	18.61B	7.97B	5.89B	4.04B	2.56B
Cash, Cash Equivalents and Short-Term Investments	6.97B	468.85M	587.62M	400.06M	113.98M	17.74M
Total Debt	0.00	2.63B	394.33M	3.01B	1.97B	877.13M
Total Liabilities	-13.93B	4.68B	1.52B	3.85B	2.84B	1.65B
Stockholders Equity	13.93B	13.94B	6.45B	2.04B	1.20B	908.92M
Cash Flow
Free Cash Flow	0.00	-2.40B	-822.89M	-958.31M	-962.08M	-156.11M
Operating Cash Flow	0.00	536.67M	-69.49M	-102.09M	209.39M	47.73M
Investing Cash Flow	0.00	-9.18B	-552.55M	-1.01B	-1.14B	-347.06M
Financing Cash Flow	0.00	8.77B	709.87M	1.26B	959.11M	236.16M

Azad Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1688.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AZAD, the sentiment is Negative. The current price of 1688.85 is above the 20-day moving average (MA) of 1628.38, above the 50-day MA of 1637.96, and above the 200-day MA of 1609.35, indicating a bearish trend. The MACD of -4.23 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AZAD.

Azad Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUMMINSIND	72 Outperform	₹1.14T	49.25	―	1.14%	20.23%	18.69%
THEJO	70 Outperform	₹18.86B	35.64	―	0.30%	4.11%	2.40%
BLUESTARCO	67 Neutral	₹370.67B	67.87	―	0.51%	14.20%	3.84%
AZAD	66 Neutral	₹101.17B	87.68	―	―	35.25%	51.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹68.11B	36.42	―	0.97%	6.51%	-1.61%
ISGEC	58 Neutral	₹60.99B	32.55	―	0.59%	-4.14%	-35.66%

Azad Engineering Limited Corporate Events

Azad Engineering Confirms SEBI Demat Compliance for December Quarter

Azad Engineering Limited has notified the stock exchanges that it has complied with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025. The company, along with its registrar and transfer agent KFin Technologies, confirmed that all details of securities dematerialized or rematerialized during the quarter have been furnished to every exchange where its shares are listed, and that the relevant securities continue to be listed on those exchanges, underscoring its ongoing adherence to regulatory and disclosure requirements for shareholders and market participants.

Azad Engineering to Attend Virtual Investor Conference

Azad Engineering Limited has announced that its officials will participate in an Investor Conference organized by J.P. Morgan on November 26, 2025, which will be held virtually. The meeting will involve 1×1 and group discussions, and the company has assured that no unpublished price-sensitive information will be disclosed, adhering to SEBI regulations. This engagement is part of Azad Engineering’s ongoing efforts to maintain transparency and communication with its stakeholders.

Azad Engineering Limited Reports Unaudited Financial Results for September 2025

Azad Engineering Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on November 1, 2025. The financial results, which include standalone and consolidated figures, were reviewed by the statutory auditors and indicate the company’s continued compliance with SEBI regulations. This announcement is crucial for stakeholders as it reflects the company’s financial health and adherence to regulatory standards.

Azad Engineering Limited Reports Q2 2025 Financial Results

Azad Engineering Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on November 1, 2025. The results, reviewed by independent auditors, comply with Indian Accounting Standards and SEBI regulations, indicating the company’s commitment to transparency and regulatory compliance. This announcement reflects Azad Engineering’s ongoing efforts to maintain its market position and provide stakeholders with timely financial information.