Azad Engineering Share Rises 10%: Stock Hits 52-Week High as Goldman Sachs Retains ₹3,315 Target
Azad Engineering, the Hyderabad-based precision engineering company, inaugurated two exclusive lean manufacturing facilities for GE Vernova's gas power business at its Centre of Excellence in Tunikibollaram on September 28, 2026. This takes the company's dedicated facilities for GE Vernova to three.
The next day, Goldman Sachs commented on the development. The brokerage maintained its 'Buy' rating with a target price of ₹3,315.
Azad Engineering Share Price: Stock Hits 52-Week High
On Tuesday, September 29, the stock rose as much as 10.1% intraday on the NSE to touch a 52-week high of ₹2,998. The rally came on a day when the broader market was weak. Around 2:24 pm the stock was at ₹2,913, up roughly 6.97%.
According to Dhan, the stock closed at ₹2,914.20 on September 29, up 7.01%. At that price, market capitalisation is about ₹18,820 crore. The previous close was ₹2,723.
Performance over the past year: On September 29, 2025, the stock was at around ₹1,575 at midday (Business Standard). Compared with ₹2,914.20 on September 29, 2026, that is a gain of about 85% in a year. Dhan shows a one-year return of 87.19%. During this period the stock also touched a 52-week low of ₹1,360 on March 23, 2026, meaning the price has more than doubled from that point.
According to an IndiaIPO headline, the stock is up about 82% so far in 2026. I could not independently verify this figure, so treat it as attributed to that source.
Why Is Azad Engineering Share Price Rising?
There are two main reasons. First, new dedicated capacity for a large global customer like GE Vernova. Second, Goldman Sachs' positive commentary. The market was weak, yet the stock saw buying, which suggests investors read the news as company-specific.
The new facilities are meant to manufacture highly engineered rotating and stationary airfoils and specialised machined parts, which are in demand in power generation. The size reported for each of the two units is 7,600 sq. ft.
Company announcement and results
Q1 FY27 (quarter ended June 2026): The company reported record quarterly revenue and profit.
- Standalone revenue: ₹170.52 crore, up 26.8% year on year
- Standalone EBITDA: ₹64.07 crore, margin 37.6%, an improvement of about 150 basis points
- Standalone PAT: ₹36.35 crore, up 21.2%
- Consolidated revenue: ₹172.60 crore (up 25.9%); consolidated PAT ₹35.16 crore
Profit grew more slowly than revenue. Other income fell to about ₹4 crore as currency gains normalised, against about ₹9.1 crore in the year-ago quarter. Employee and finance costs also rose with capacity expansion.
In the revenue mix, Energy and Oil & Gas contributed 81.2% and exports 88%, while domestic revenue rose to 12%. In the same quarter, the company also reported delivering India's first indigenous expendable turbojet engine to DRDO/MoD. It stays with its 25–30% growth guidance.
Earlier context: On September 29, 2025, the company announced a five-year long-term contract with Mitsubishi Heavy Industries, Japan, worth ₹651 crore (about $73.47 million). In May 2025 it also signed a supply agreement with GE Vernova worth about $53.5 million.
Goldman Sachs on Azad Engineering: ₹3,315 Target
Goldman Sachs has maintained its 'Buy' rating and ₹3,315 target price. Against the previous close of ₹2,723, this implies potential upside of about 22%.
According to the brokerage, the new facilities matter because gas-turbine expansion remains the company's key medium-term growth driver. It also said the company is moving beyond being a component supplier towards being a platform/integrated partner. The large order book provides multi-year revenue visibility.
Key numbers
- September 29 high / close: ₹2,998 / ₹2,914.20
- 52-week low: ₹1,360 (March 23, 2026)
- Market cap: about ₹18,820 crore
- P/E: about 126x
- Goldman target: ₹3,315 (Buy)
- Order book: above ₹6,500 crore
- One-year return: roughly 85–87%
What should investors watch next?
- Ramp-up of the new facilities: How quickly production and revenue from the three GE Vernova facilities build up.
- Margins: Whether the 37.6% EBITDA margin holds.
- Other income and finance costs: Profit growth lagged revenue growth because of lower currency gains and higher costs from expansion. Management has indicated working capital of 170–180 days and finance costs staying high until H2 FY27.
- Valuation: At a P/E of around 126x, a lot is already priced in. Even a small miss in results could bring sharp swings in the stock.
- Q2 FY27 results and order book update: Progress against the 25–30% growth guidance.
- Customer and segment diversification: How much aerospace and defence, such as the turbojet engine, starts to contribute.
Sources
Business Upturn: Goldman target, previous close and valuation
Disclaimer: This article is for information only and is not investment advice. Investing in the stock market is subject to risk.
