1 hr ago
Azad Engineering Shares Surge as Goldman Sachs Recommends Buy
Azad Engineering makes components used in areas such as gas turbines.
Its shares rose after Goldman Sachs gave a positive view of the company.
Goldman Sachs said Azad is building new facilities to handle more business.
The bank believes demand for gas-turbine parts could grow.
It also said Azad is moving from being only a component supplier toward becoming a broader platform partner.
Azad’s large order book could provide revenue for several years.
Goldman Sachs gave the stock a 12-month price target of Rs 3,315.
The company is expanding its facilities in phases.
Azad Engineering shares rose 7.07% to reach Rs 2,918.95 on the BSE.
The stock has gained 76.73% year-to-date, according to the report.
Goldman Sachs set a 12-month target price of Rs 3,315 per share.
The brokerage said new facilities could support rising gas-turbine component demand and deepen Azad’s relationship with GE Vernova.
Azad’s expansion includes a 94,900-square-metre Phase 1 project, with Phase 2 planned to add another 67,300 square metres.
- Who
- Azad Engineering and Goldman Sachs are the main parties mentioned; GE Vernova and Baker Hughes are identified as customers connected to dedicated facilities.
- What
- Azad Engineering shares rose 7.07% after Goldman Sachs recommended buying the stock and set a Rs 3,315 target price.
- Where
- The stock rose on the BSE, while the expansion is taking place at Tunikibollaram.
- When
- The report does not specify a publication date; the target covers the next 12 months.
- Why
- Goldman Sachs cited Azad’s facility expansion, gas-turbine demand, customer relationships, product qualifications, and large order book.
Key facts
- Share price high
- Rs 2,918.95 on the BSE
- Daily gain
- 7.07%
- Year-to-date gain
- 76.73%
- Goldman Sachs target
- Rs 3,315 per share over 12 months
- Phase 1 expansion
- 94,900 square metres at Tunikibollaram
- Phase 2 expansion
- A further 67,300 square metres is planned
- Dedicated facilities
- The two facilities would take Azad’s dedicated facility count to six since listing, according to Goldman Sachs
Quotes
Goldman Sachs
Global investment bank and foreign brokerage covering Azad Engineering
“We see this development as supportive of our thesis around a multi year ramp up in Azad's energy business, led by strong gas turbine demand. The two facilities take Azad's dedicated facility count to six since listing, following the commissioning of its fourth dedicated facility for Baker Hughes in Apr-26,”
businesstoday.in
“Phase 2 envisages a further 67,300 square metre of capacity, with the management earlier indicating that construction would commence after completion of Phase 1. We also see the development as supportive of Azad's broader move up the value chain from a component supplier to a platform integrator”
businesstoday.in
Sources
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