Azad Engineering Limited (AZAD) AI Stock Analysis

• Market Cap: ₹105.63B
• Dividend Yield: N/A
• Average Volume (3M): 26.96K
• Price to Earnings (P/E): 100.0
• Beta (1Y): 2.02
• Revenue Growth: 35.25%
• EPS Growth: 51.17%
• Country: IN
• Employees: 1,212
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 4.56
• 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: ₹2,055.00
• Price Target Upside: 24.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ₹1,867.00 ▲(12.70% 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.

Azad Engineering Limited Business Overview & Revenue Model

Company Description

Azad Engineering Limited (AZAD) is a leading engineering company based in [location], specializing in the design, manufacture, and supply of high-quality engineering solutions across various sectors, including aerospace, automotive, and industrial manufacturing. The company is renowned for its cutting-edge technology and innovative products, including precision machined components, assembly systems, and custom-engineered solutions tailored to meet the specific needs of its clients.

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

Azad Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1656.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AZAD, the sentiment is Neutral. The current price of 1656.6 is below the 20-day moving average (MA) of 1664.26, above the 50-day MA of 1629.21, and above the 200-day MA of 1558.09, indicating a neutral trend. The MACD of 13.69 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 33.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	₹1.10T	51.47	―	1.18%	20.71%	17.04%
BLUESTARCO	―	₹412.38B	75.89	―	0.47%	17.04%	7.63%
THEJO	―	₹19.68B	38.67	―	0.27%	0.45%	-6.28%
AZAD	―	₹105.63B	100.03	―	―	35.25%	51.17%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	―	₹72.57B	38.82	―	0.90%	6.51%	-1.61%
ISGEC	―	₹65.43B	27.72	―	0.57%	-2.31%	-8.69%

Azad Engineering Limited Corporate Events

Azad Engineering Limited Confirms SEBI Compliance for Q3 2025

Azad Engineering Limited has announced its compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. The company confirmed that details of securities dematerialized during this period have been provided to all relevant stock exchanges, ensuring transparency and adherence to regulatory requirements. This compliance underscores Azad Engineering’s commitment to maintaining robust corporate governance and could positively impact its reputation among stakeholders.

Azad Engineering Launches Lean Manufacturing Facility

Azad Engineering Limited has inaugurated a new Lean Manufacturing Facility at its plant in Tunikibollaram IP, Hyderabad. This facility, launched in the presence of Siemens Energy’s senior global leadership, aims to enhance the supply of critical components for turbine engines, aligning with Siemens Energy’s global requirements. This development is expected to bolster Azad Engineering’s operational capabilities and strengthen its position in the power generation sector.

Azad Engineering Limited Approves Q1 Financial Results

Azad Engineering Limited held its board meeting on August 4, 2025, where the board approved the standalone and consolidated unaudited financial results for the first quarter ending June 30, 2025. This approval signifies the company’s commitment to transparency and regulatory compliance, potentially impacting its operational strategies and stakeholder confidence positively.