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Azad Engineering Limited (IN:AZAD)
:AZAD
India Market
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Azad Engineering Limited (AZAD) AI Stock Analysis

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IN:AZAD

Azad Engineering Limited

(AZAD)

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Neutral 61 (OpenAI - Gpt-5.6Sol)
Rating:61Neutral
Price Target:
₹2,929.00
▲(3.60% Upside)
Action:Reiterated
Date:07/10/26
The score is primarily held back by weak cash generation (negative operating and deeply negative free cash flow), despite strong revenue growth and high reported margins. Technicals are supportive with an established uptrend and positive momentum. Valuation remains a key constraint due to the very high P/E and no provided dividend yield.
Positive Factors
Strong revenue scaling
The substantial multi-year revenue increase indicates expanding commercial scale and demand for Azad Engineering’s precision-manufacturing offering. Continued growth provides a larger base for operating leverage, customer development, and investment in capabilities that can support durable expansion over the next several quarters.
Negative Factors
Negative operating cash flow
Negative operating cash flow alongside strong accounting profits signals weak near-term cash conversion and raises execution concerns. If this pattern persists, the company may need to rely more heavily on financing or tighter working-capital management, limiting the practical benefit of its reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue scaling
The substantial multi-year revenue increase indicates expanding commercial scale and demand for Azad Engineering’s precision-manufacturing offering. Continued growth provides a larger base for operating leverage, customer development, and investment in capabilities that can support durable expansion over the next several quarters.
Read all positive factors

Azad Engineering Limited (AZAD) vs. iShares MSCI India ETF (INDA)

Azad Engineering Limited Business Overview & Revenue Model

Company Description
Azad Engineering Limited, established in Hyderabad, India, in 1983, specializes in the manufacturing and distribution of high-precision engineered components crafted through advanced forging and machining processes. Their comprehensive product por...
How the Company Makes Money
AZAD makes money by manufacturing and supplying precision-engineered components and assemblies to customers (typically industrial OEMs and tier suppliers) under purchase orders and longer-term supply arrangements. Its primary revenue stream is the...

Azad Engineering Limited Financial Statement Overview

Summary
Income statement strength (Score 86) shows rapid scale-up and strong profitability (2026 gross ~59%, EBIT ~36%, net ~22%). Balance sheet is improved with leverage reduced to ~0.31x debt/equity (Score 74). However, cash flow is a major risk (Cash Flow Score 29): operating cash flow turned negative in 2026 and free cash flow is deeply negative, raising cash-conversion and execution concerns that materially pull down the overall financial profile.
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
29
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.38B6.03B4.44B3.28B2.42B1.85B
Gross Profit4.82B3.56B3.26B2.48B1.84B1.40B
EBITDA2.77B2.71B1.64B1.34B564.11M619.75M
Net Income1.39B1.33B873.18M585.80M84.73M294.57M
Balance Sheet
Total Assets0.0022.00B18.61B7.97B5.89B4.04B
Cash, Cash Equivalents and Short-Term Investments1.85B1.85B468.85M587.62M400.06M113.98M
Total Debt0.004.74B2.63B394.33M3.01B1.97B
Total Liabilities-15.29B6.71B4.68B1.52B3.85B2.84B
Stockholders Equity15.29B15.29B13.94B6.45B2.04B1.20B
Cash Flow
Free Cash Flow-3.83B-6.91B-2.40B-822.89M-958.31M-962.08M
Operating Cash Flow-758.90M-1.19B536.67M-69.49M-102.09M209.39M
Investing Cash Flow345.26M-714.22M-9.18B-552.55M-1.01B-1.14B
Financing Cash Flow321.52M1.74B8.77B709.87M1.26B959.11M

Azad Engineering Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2827.20
Price Trends
50DMA
2495.14
Positive
100DMA
2290.39
Positive
200DMA
1942.18
Positive
Market Momentum
MACD
94.26
Positive
RSI
58.19
Neutral
STOCH
19.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AZAD, the sentiment is Positive. The current price of 2827.2 is above the 20-day moving average (MA) of 2759.66, above the 50-day MA of 2495.14, and above the 200-day MA of 1942.18, indicating a bullish trend. The MACD of 94.26 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AZAD.

Azad Engineering Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
₹153.14B57.001.69%8.28%1.08%
71
Outperform
₹147.74B39.710.38%5.04%-10.39%
63
Neutral
₹58.35B27.540.21%14.10%-49.84%
62
Neutral
₹98.82B37.670.79%9.81%24.53%
61
Neutral
₹179.28B129.2928.72%31.59%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹141.38B-1.920.54%4.63%-4.40%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:AZAD
Azad Engineering Limited
2,775.95
1,185.45
74.53%
IN:INGERRAND
Ingersoll-Rand (India) Limited
4,851.25
1,103.11
29.43%
IN:KIRLOSBROS
Kirloskar Brothers Ltd.
1,860.50
-112.24
-5.69%
IN:KIRLPNU
Kirloskar Pneumatic Co. Ltd.
760.60
130.33
20.68%
IN:KSB
KSB Ltd.
812.35
8.77
1.09%
IN:SHAKTIPUMP
Shakti Pumps (India) Limited
472.90
-343.64
-42.09%

Azad Engineering Limited Corporate Events

Azad Engineering Publishes Q1 FY27 Earnings Call Transcript for Investors
Aug 14, 2026
Azad Engineering Limited has submitted to the BSE and NSE the official transcript of its Q1 FY27 earnings conference call held on August 8, 2026. The company has also made the transcript available in the Investors Relations section of its website,...
Azad Engineering Schedules Investor Conference Meeting in Hyderabad
Jun 8, 2026
Azad Engineering Limited has notified the stock exchanges that its officials will participate in a group meeting with analysts and institutional investors at an investor conference organized by Citigroup Global Markets India in Hyderabad on June 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2026