Sachin Tendulkar’s Investment
Investment Impact: Sachin Tendulkar, along with other prominent figures, has invested in Azad Engineering, resulting in a 20% surge in the company’s shares.
Manufacturing Agreement Details
Components Manufacturing
Scope of Agreement: Azad Engineering, based in Hyderabad, will exclusively manufacture complex components for defense aircraft engines under the Memorandum of Understanding (MoU).
Global Supply Chain Integration
Global Collaboration: Azad Engineering will become part of the global supply chain for Rolls-Royce’s advanced aero engines, marking a strategic move to strengthen the defense ecosystem.
Rolls-Royce Ecosystem in India
Ecosystem Strength: Rolls-Royce emphasizes its strong presence in India, citing local partnerships, joint ventures, robust supply chains, skilled talent pool, engineering capabilities, digital solutions, and service delivery capabilities.
Azad Engineering’s Stock Performance
Post-Partnership Surge: Following the long-term agreement with Rolls Royce, Azad Engineering’s stock experienced an all-time high, reaching a 20% upper circuit.
Key Players’ Investments
Prominent Investors: Renowned personalities like Sachin Tendulkar, Saina Nehwal, VVS Laxman, and PV Sindhu have invested in Azad Engineering, showcasing confidence in the company’s potential.
Rolls-Royce Contract
Duration and Scope: Azad Engineering has signed a 7-year contract with Rolls-Royce to manufacture essential engine parts for defense and military aircraft.
About Azad Engineering Ltd
Established in 1983, Azad Engineering Limited is a leading manufacturer specializing in aerospace components and turbines. The company caters to original equipment manufacturers (OEMs) operating in diverse sectors, including aerospace, defense, energy, and oil and gas.
Azad Engineering’s product portfolio consists of highly engineered, complex, mission-critical components that play a vital role in various industries.
As of September 30, 2023, the company achieved a revenue milestone of ₹1,142.92 million, primarily derived from the sale of energy industry blades. Azad Engineering serves a global customer base, with clients located in the USA, China, Europe, the Middle East, and Japan.
The company operates four advanced manufacturing facilities situated in Hyderabad, Telangana, India. These facilities boast the capability to produce high-precision forged and machined components, covering a combined production area of approximately 20,000 square meters. Additionally, Azad Engineering is strategically planning to establish two new manufacturing units in Tuniki Bollaram village, Siddipet district, Telangana, and Mangampet village, Sangareddy district, Telangana. These upcoming plants will offer a substantial total production area, measuring 94,898.78 and 74,866.84 square meters, respectively.
Azad Engineering, headquartered in Hyderabad, Telangana, India, is a key player in the industry, employing a workforce ranging from 201 to 500 individuals.
Fundamentals of Azad Engineering Ltd
| Metric | Value |
|---|---|
| Market Cap | ₹ 5,050.02 Cr. |
| Enterprise Value | ₹ 5,297.70 Cr. |
| No. of Shares | 5.91 Cr. |
| P/E | 593.55 |
| P/B | 4.55 |
| Face Value | ₹ 2 |
| Div. Yield | 0% |
| Book Value (TTM) | ₹ 187.84 |
| Cash | ₹ 52.72 Cr. |
| Debt | ₹ 300.39 Cr. |
| Promoter Holding | 65.9% |
| EPS (TTM) | ₹ 1.44 |
| Sales Growth | 29.42% |
| ROE | 5.25% |
| ROCE | 15.97% |
| Profit Growth | -69.61% |
Conclusion
In conclusion, the partnership between Rolls Royce and Azad Engineering signifies a significant step towards advancing India’s aerospace and defense industry. The investment influx and positive stock performance underscore the market’s confidence in the collaboration’s potential.
Disclaimer:
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