2 days ago
Azad Engineering Gains as ICICI Securities Raises Target to ₹3,200
Azad Engineering makes precision parts for industries such as energy, aerospace and defence.
Its shares have risen sharply in recent months.
ICICI Securities kept its BUY rating and raised its price target to ₹3,200.
The brokerage expects the company to benefit as new manufacturing facilities begin operating.
Two new facilities will serve GE Vernova’s gas power business.
Six of the company’s seven planned dedicated facilities have now been commissioned.
Azad reported higher revenue and profit in the quarter ending June 30, 2026, than in the same quarter a year earlier.
The company says it expects revenue to grow by more than 25% a year, while the brokerage has made its own forecasts for future growth and margins.
ICICI Securities retained its BUY rating on Azad Engineering and raised its target price to ₹3,200 from ₹1,900.
The brokerage said its revised target uses 55 times estimated FY29 earnings per share.
Azad shares gained 85% in six months, according to the article.
Two new facilities for GE Vernova’s gas power business were inaugurated in Hyderabad, bringing six of seven planned dedicated facilities into operation.
In the quarter ended June 30, 2026, consolidated revenue rose 26% to ₹172.5 crore and net profit increased 20.2% to ₹35.7 crore year on year.
- Who
- Azad Engineering and ICICI Securities.
- What
- ICICI Securities retained its BUY rating and raised its target price for Azad Engineering to ₹3,200 from ₹1,900.
- Where
- The new GE Vernova gas power facilities are at Azad Engineering’s Centre of Excellence & Innovation Centre in Hyderabad, India.
- When
- The article reports the stock’s six-month performance and the quarter ended June 30, 2026; the two facilities were described as newly inaugurated.
- Why
- ICICI Securities cited expanding manufacturing capacity, improving order visibility and expectations of stronger future earnings.
Brokerage outlook
Company guidance
Growth and margins
Brokerage outlook
ICICI Securities forecast a 33% revenue CAGR from FY26 to FY29 and margins of 37–38%, and said management guidance could be conservative.
Company guidance
Management maintained guidance for revenue CAGR above 25% and operating margins of 32–35%.
Capacity and future growth
Brokerage outlook
The brokerage expects new capacity and follow-on large orders from GE Vernova to support earnings, and expects another growth-capex phase to sustain visibility beyond FY30.
Company guidance
The article reports the company’s stated plan to commission its remaining dedicated facility by end-FY27; it does not provide a company response to the brokerage’s order or capex expectations.
Key facts
- Revised target price
- ₹3,200, raised from ₹1,900
- Brokerage rating
- BUY, retained by ICICI Securities
- Target valuation
- 55 times estimated FY29 earnings per share
- Share performance
- Up 85% over six months, as reported in the article
- Dedicated facilities
- Six of seven planned facilities commissioned; the remaining facility is expected by end-FY27
- Q1 consolidated revenue
- ₹172.5 crore, up 26% year on year
- Q1 consolidated net profit
- ₹35.7 crore, up 20.2% year on year
- Management guidance
- Revenue CAGR above 25% and operating margins of 32–35%
Quotes
ICICI Securities
Brokerage that retained its BUY rating and revised its Azad Engineering target price.
“Out of the 7 planned facilities, Azad now has only one dedicated facility remaining to be commissioned, which is expected by end-FY27. This marks the start of the execution phase, which will likely drive earnings for the next 2-3 years.”
livemint.com
“We are introducing FY29 estimates and rolling over our target multiple to FY29, arriving at a target price of INR 3,200 (55x FY29E EPS)”
livemint.com
Sources
Related news
Azad Engineering Shares Rally 86%; Experts Assess Further Upside
Azad Engineering Shares Surge as Goldman Sachs Recommends Buy
Action Construction Shares Rise 50% as ICICI Direct Sees Upside
Brokerages Turn Bullish on Elecon Engineering, Set Fresh Targets
Adani Stocks Rebound Sharply, Brokerages Set Higher Targets
Brokerages Identify Nine Buy-Rated Stocks With Up To 75% Upside
US, Japan and South Korea Plan Global SMR Expansion
Model-Driven Fund Adjusts Equity Exposure Across Market Cycles
