Multibagger Aerospace Company Azad Engineering Secures INR 960 Cr Project from USA-Based GE Vernova

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A significant contract worth USD 112 million (~INR 960 crore) was recently signed by Azad Engineering, a Hyderabad-based manufacturer of turbine and aerospace components, with GE Vernova International LLC, USA. This contract represents a significant advancement for Azad Engineering and demonstrates its strength in the global power generation market.

Azad Engineering project from GE Vernova

Azad Engineering’s Partnership With GE Vernova

This is not your typical corporate arrangement. It all comes down to providing extremely advanced, precisely designed gas turbine engine airfoils. These components are essential for satisfying the expanding demand in the power industry. The six-year arrangement strengthens Azad’s position with GE Vernova, a well-known brand in the sector and indicates a long-term commitment between the two titans.

This collaboration is a statement rather than merely a victory for Azad. It demonstrates that the company is here to lead. Together with GE Vernova, Azad will increase its global presence and establish itself as a preferred supplier for some of the most well-known manufacturers.

The Financial Boom

Because of this new agreement, Azad’s order book is growing and currently stands at INR 5,500 crore. The company has been successful in landing deals with GE as well as industry titans like Baker Hughes, Honeywell Aerospace, Mitsubishi Heavy Industries, and Arabelle Solutions France. This illustrates Azad’s ability to satisfy exacting quality requirements and tackle challenging engineering problems.

Not to be overlooked are the Q2 FY25 (July-September 2024) financials. Revenue increased 34.5% from the previous year to INR 111.41 crore. EBITDA increased by 51.4% to INR 39.79 crore, while margins increased by 400 basis points to 35.7%. The net profit increased by 42.3% year over year to INR 21.07 crore. As new items go from development to production, the aerospace and defence industries have proven very profitable.

Market Reaction

The stock market reacted fast, on 16 January 2025, Azad Engineering’s shares jumped 9.5% to INR 1,732 in early trading on the NSE, reflecting investor faith in the company’s trajectory. Since hitting the market in December 2023 at INR 524 per share, Azad’s stock has soared, providing 220% multibagger returns and reaching a 52-week high of INR 2,080. Over the past year, the stock has grown by 75%, marking it as a true market performer.

Azad Engineering

Azad Engineering was founded in 1983. The company has established expertise in manufacturing precision parts for vital industries like oil and gas, aerospace, defence, and energy. For industry titans like General Electric, Siemens, and Eaton, their products—which range from turbine blades to 3D spinning airfoils—are essential. They are a well-known brand in the business thanks to their emphasis on quality and innovation.

Looking Forward

Azad is well-positioned for further expansion with this agreement with GE Vernova. A promising future is indicated by its growing order book, strong financial results, and strategic partnerships. Because they believe Azad can use technology, efficiency, and partnerships to continue expanding, brokerage firms are bullish and have set target prices as high as INR 2,450.

Azad Engineering stands as a testament to India’s manufacturing prowess, aiming not just to participate but to lead on the global stage.

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