Multibagger Azad Engineering shares hit record high; stock up over 100% in six months

Shares of Azad Engineering Ltd extended their sharp gains in Wednesday's trade to touch an all-time high of Rs 3,125. At last check, the stock was up 6.51 per cent at Rs 3,104.80, delivering multibagger returns to investors by rallying 102.06 per cent over the last six months.

Goldman Sachs has maintained 'Buy' on the stock following the inauguration of two exclusive lean manufacturing facilities for GE Vernova's Gas Power business at its Tunikibollaram Center of Excellence, with each facility spanning 7,600 square meters.

The facilities will manufacture highly engineered rotating and stationary airfoils and specialised machined parts, further strengthening Azad's exposure to the ongoing gas turbine upcycle.

Goldman Sachs said the facilities are particularly relevant given gas-turbine expansion remained one of Azad's key medium-term growth drivers. The global investment bank said the company continued to move up the value chain from a component supplier toward a broader platform partner, and its sizable order book provides multi-year revenue visibility.

The product qualifications offer incremental optionality beyond the existing base, Goldman Sachs said as it suggested a 12-month target of Rs 3,315 per share on 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," Goldman Sachs noted.

The foreign brokerage said the development further deepened Azad's relationship with GE Vernova and adds customer-specific capacity to support the expected ramp-up in gas turbine component demand.

The facilities form part of Azad's broader 94,900 square metre Phase-1 expansion at Tunikibollaram, compared with 20,000 square metres of legacy facilities.

"Phase 2 envisages a further 67,300 square metres 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," Goldman Sachs further stated.

Meanwhile, ICICI Securities has upgraded the stock to 'Buy' from 'Add' earlier, with a 12-month target price of Rs 3,200.

"We expect follow-up large orders from GE, providing another 5-6 years of visibility to the newly commissioned unit. We are introducing FY29 estimates and rolling over our target multiple to FY29, arriving at a target price of Rs 3,200 (55x FY29E EPS)," the domestic brokerage stated.

The company manufactures rotating airfoil portions of turbine engines and other critical products for defence and civil aircraft and thermal power.