BSE: 544061 | NSE: AZAD | Engineering - Industrial Equipments | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Azad Engineering Ltd is a average quality company.
The key valuation ratios of Azad Engineering Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Azad Engineering Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|
| ROCE % ⓘ | 13.6% | 16.5% | 16% | 21.6% | - |
| Value Creation Index ⓘ | 0 | 0.2 | 0.2 | 0.6 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||
| Sales ⓘ | 121 | 194 | 252 | 341 | 392 |
| Sales YoY Gr. | - | 61.4% | 29.4% | 35.4% | - |
| Adj EPS ⓘ | 2.8 | 6.2 | 0.9 | 8.5 | 11.8 |
| YoY Gr. | - | 120.3% | -86% | 872.4% | - |
| BVPS (₹) ⓘ | 19.8 | 26.4 | 41.2 | 109.1 | 115.5 |
| Adj Net Profit ⓘ | 12.8 | 28.1 | 4.3 | 50 | 70 |
| Cash Flow from Ops. ⓘ | 33.9 | 20.9 | -10.2 | -7 | - |
| Debt/CF from Ops. ⓘ | 2.5 | 9.4 | -29.4 | -5.4 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 41.4% | 35.4% | ||||
| Adj EPS ⓘ | NA | NA | 44.4% | 872.4% | ||||
| BVPSⓘ | NA | NA | 76.7% | 165.1% | ||||
| Share Price | - | - | - | - | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|
| Return on Equity % ⓘ | 12.6 | 25.4 | 2.7 | 11.8 | 10.5 |
| Op. Profit Mgn % ⓘ | 23.8 | 32.1 | 28.7 | 34.2 | 35 |
| Net Profit Mgn % ⓘ | 10.6 | 14.5 | 1.7 | 14.7 | 17.8 |
| Debt to Equity ⓘ | 0.9 | 1.6 | 1.5 | 0.1 | 0.1 |
| Working Cap Days ⓘ | 0 | 314 | 376 | 399 | 199 |
| Cash Conv. Cycle ⓘ | 0 | 89 | 155 | 193 | 144 |
Sales growth is growing at healthy rate in last 3 years 41.41%
Net Profit is growing at healthy rate in last 3 years 44.40%
Sales growth is good in last 4 quarters at 30.66%
Return on Equity has declined versus last 3 years average to 10.50%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 11.8 | 11.8 |
| TTM Sales (₹ Cr.) | 392 | 392 |
| BVPS (₹.) ⓘ | 115.5 | 115.5 |
| Reserves (₹ Cr.) ⓘ | 671 | 671 |
| P/BV ⓘ | 14.37 | 14.37 |
| PE ⓘ | 140.32 | 140.45 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 641.95 / 2080.00 |
| All Time Low / High (₹) | 641.95 / 2080.00 |
| Market Cap (₹ Cr.) | 9,813 |
| Equity (₹ Cr.) | 11.8 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 59.3 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.76 |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|
| Sales | 121 | 194 | 252 | 341 |
| Operating Expenses ⓘ | 92 | 132 | 179 | 224 |
| Manufacturing Costs | 39 | 56 | 71 | 85 |
| Material Costs | 14 | 21 | 30 | 46 |
| Employee Cost | 32 | 46 | 59 | 74 |
| Other Costs ⓘ | 8 | 10 | 19 | 19 |
| Operating Profit ⓘ | 29 | 62 | 72 | 117 |
| Operating Profit Margin (%) | 23.8% | 32.0% | 28.7% | 34.2% |
| Other Income ⓘ | 4 | 3 | 10 | 32 |
| Interest ⓘ | 5 | 14 | 52 | 47 |
| Depreciation ⓘ | 9 | 13 | 17 | 21 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 19 | 39 | 13 | 81 |
| Tax ⓘ | 6 | 11 | 5 | 22 |
| Profit After Tax | 14 | 28 | 9 | 59 |
| PAT Margin (%) | 11.2% | 14.4% | 3.4% | 17.2% |
| Adjusted EPS (₹) | 3.0 | 6.2 | 1.7 | 9.9 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 101 | 120 | 204 | 645 | ||||||
| Share Capital ⓘ | 5 | 2 | 2 | 12 | ||||||
| Reserves ⓘ | 96 | 119 | 202 | 633 | ||||||
| Minority Interest | 0 | 0 | 0 | 0 | ||||||
| Debt | 67 | 176 | 276 | 28 | ||||||
| Long Term Debt | 37 | 122 | 221 | 27 | ||||||
| Short Term Debt | 30 | 54 | 55 | 0 | ||||||
| Trade Payables | 41 | 43 | 49 | 50 | ||||||
| Others Liabilities ⓘ | 50 | 70 | 72 | 89 | ||||||
| Total Liabilities ⓘ | 260 | 408 | 602 | 812 | ||||||
Fixed Assets | ||||||||||
| Gross Block | 158 | 160 | 248 | 317 | ||||||
| Accumulated Depreciation | 44 | 22 | 39 | 59 | ||||||
| Net Fixed Assetsⓘ | 114 | 137 | 210 | 257 | ||||||
| CWIP ⓘ | 0 | 24 | 38 | 45 | ||||||
| Investmentsⓘ | 6 | 6 | 6 | 0 | ||||||
| Inventories | 29 | 57 | 86 | 133 | ||||||
| Trade Receivables | 53 | 75 | 119 | 170 | ||||||
| Cash Equivalents | 20 | 18 | 53 | 59 | ||||||
| Others Assetsⓘ | 36 | 91 | 90 | 147 | ||||||
| Total Assets ⓘ | 260 | 408 | 602 | 812 | ||||||
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 34 | 21 | -10 | -7 |
| PBT ⓘ | 19 | 39 | 13 | 81 |
| Adjustment ⓘ | 9 | 25 | 67 | 76 |
| Changes in Working Capital ⓘ | 10 | -38 | -81 | -149 |
| Tax Paid ⓘ | -4 | -5 | -10 | -15 |
| Cash Flow From Investing Activity ⓘ | -29 | -114 | -101 | -55 |
| Capex | -22 | -117 | -84 | -71 |
| Net Investments | 0 | 2 | -20 | 3 |
| Others ⓘ | -7 | 1 | 3 | 13 |
| Cash Flow From Financing Activityⓘ | 7 | 96 | 126 | 71 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 57 | 240 |
| Net Proceeds from Borrowing ⓘ | 11 | 21 | -44 | -52 |
| Interest Paid ⓘ | -5 | -14 | -52 | -47 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 |
| Others ⓘ | 1 | 88 | 165 | -70 |
| Net Cash Flow ⓘ | 12 | 3 | 15 | 9 |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 15.04 | 23.33 | 5.25 | 13.8 | ||||||
| ROCE (%) | 13.56 | 16.5 | 15.97 | 21.58 | ||||||
| Asset Turnover Ratio | 0.46 | 0.48 | 0.5 | 0.48 | ||||||
| PAT to CFO Conversion(x) | 2.43 | 0.75 | -1.11 | -0.12 | Working Capital Days | |||||
| Receivable Days | 162 | 140 | 140 | 155 | ||||||
| Inventory Days | 89 | 108 | 104 | 117 | ||||||
| Payable Days | 1,101 | 748 | 557 | 394 | ||||||
The company was originally incorporated as ‘Azad Engineering Private Limited’ at Hyderabad, Telangana, as a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation dated September 14, 1983, issued by Registrar of Company, Telangana at Hyderabad (RoC). Subsequently, the name of the company was changed to ‘Azad Engineering Limited’ pursuant to the conversion of the company from a private limited company to a public limited company and a fresh certificate of incorporation dated September 5, 2023, was issued by the RoC.
The company is one of the key manufacturers of its qualified product lines supplying to global original equipment manufacturers (OEMs) in the energy, aerospace and defence, and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components. It manufactures complex and highly engineered precision forged and machined components that are mission and life-critical and hence, some of its products have a “zero parts per million” defects requirement. It competes with manufacturers from China, Europe, USA and Japan. Its customers include global OEMs across the energy, aerospace and defence, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.
The company’s products include 3D rotating airfoil/ blade portions of turbine engines and other critical components for (a) gas, nuclear and thermal turbines used in industrial applications or energy generation, and (b) defence and civil aircrafts and spaceships. The demand for such precision, forged and machined components is driven by requirements relating to energy turbines (industrial, gas, nuclear and coal), aircrafts (commercial and military), amongst others. Airfoils/ blades are one of the most critical 3D rotating and stationary parts of a turbine in the compression section. To sustain the high pressure, airfoils/ blades are made up of exotic/ super alloys and manufactured with a unique process designed by the company.
In the energy industry, the company produces high-precision rotating and stationary 3D airfoils/ blades, special machined parts and combustion component assemblies for land-based turbines with applications in industrial and energy plants using different fuel types such as nuclear, hydrogen, natural gas and thermal. The company’s aerospace and defence products include airfoils/ blades and components for engines, auxiliary power units (APUs), hydraulics, actuating systems, flight controls, fuel and inerting sections of commercial and defence aircrafts and spacecrafts, among other defence systems and various critical components for missiles. It has supplied critical components to major commercial aircraft manufacturers such as B737, B737 Max, B747, B777, B777X, A320, A350, A355, A350 XWB, Gulfstream G550 and are currently in discussions for supply of components for new engine platforms to various kinds of aircraft manufacturers. For the oil and gas industry, it manufactures components of drilling rigs such as drill bits and other critical components that are used in drilling equipment and are part of exploration and production phase.
Business area of the company
The company is one of the key manufacturers of its qualified product lines in the aerospace and defence, energy and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components.
Awards and accreditations
Major events and milestones
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