May 24, 2024

Azad Engineering closes robust on debut

Hyderabad-based Azad Engineering shares recorded robust double-digit beneficial properties on its debut and made a number of traders, together with sports activities individuals Sachin Tendulkar, Pusarla Venkata Sindhu, Saina Nehwal, and Venkatsai Laxman Vangipurapu, Nikhat Zareen, and Velagapudi Pranavi Chandra rich.

The inventory opened 37.4 p.c greater at Rs 720 on the NSE, towards a problem worth of Rs 524, however couldn’t maintain above the Rs 700 mark because the day progressed, and hit a day’s low of Rs 670.

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The inventory lastly settled close to the day’s low, at Rs 677.50 with 29.3 p.c beneficial properties, whereas on the BSE, it registered a 29.22 p.c rally to shut at Rs 677.10 on December 28.

Additional, it traded with a quantity of 1.51 crore fairness shares on the NSE, and seven.8 lakh shares traded on the BSE.

Additionally learn: Azad Engineering delivers 37% itemizing beneficial properties: Time to e-book revenue, maintain, or purchase extra shares?

Broadly, the itemizing was beneath analysts’ expectations. Analysts had estimated it to debut with over 50 p.c beneficial properties contemplating the strong subscription numbers of over 80 occasions and optimistic market circumstances.

The high-precision solid and machined parts maker has raised Rs 740 crore by an preliminary public providing, which consisted of a contemporary situation of Rs 240 crore and an offer-for-sale of Rs 500 crore. The worth band for the supply was Rs 499-524 per share.

Azad Engineering is likely one of the most popular producers of complicated & extremely engineered precision solid & machined parts for unique gear producers (OEMs) in power (which contributed 89 p.c to gross sales as of 1HFY24), aerospace/defence (9 p.c), and oil & gasoline industries.

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Additionally learn: Will Innova Captab see double-digit beneficial properties on debut?

The corporate derived 90 p.c of its 1HFY24 income from exports to international OEMs, backed by long-term contracts. Key prospects embody Common Electrical, Honeywell Worldwide, Mitsubishi Heavy Industries, Siemens Vitality, Eaton Aerospace and MAN Vitality Options.

“We like Azad given its presence within the high-growth area of interest phase with excessive entry boundaries, diversified product/consumer portfolio and strong financials. It could profit from business tailwinds, particularly in aerospace and defence house which might enhance its income combine,” Motilal Oswal stated.

The corporate has reported progress in income at a CAGR of 43 p.c and revenue at a CAGR of 33 p.c throughout FY21-FY23.

Mehta Equities is recommending traders, who obtained shares in allotment to carry the inventory. “Given the area of interest product profile with mission and life important parts demand together with 80 p.c export income (FY23) and superior margin profile, Azad would command the next valuation a number of.”

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