Azad Engineering Stock Price Soars 14% on ₹700 Crore Contract with Mitsubishi

Azad Engineering Limited experienced a significant surge in its stock price, climbing 14.3% to ₹1,670 during early trading on November 4, following the announcement of a substantial ₹700 crore contract with Mitsubishi Heavy Industries (MHI). Azad Engineering stock price had closed at ₹1,461.10, in the previous trading session on Friday. 

On Sunday, the company announced in an exchange filing that it has entered into a Long-Term Contract & Price Agreement (LTCPA) with Mitsubishi Heavy Industries Limited (MHI) for the supply of intricately engineered rotating and stationary airfoils designed for advanced gas and thermal power turbine engines. This agreement, confirmed through an exchange filing on November 3, aims to meet the escalating global demand within the power generation sector and has a total value of approximately $82.89 million (₹700 crore). 

Azad Engineering emphasized that this contract is a pivotal step in strengthening its strategic relationship with Mitsubishi Heavy Industries. The company said in its filing, “We hereby inform you that Azad Engineering Limited has signed Long Term Contract & Price Agreement (LTCPA) with Mitsubishi Heavy Industries Limited, Japan (MHI) for supply of highly engineered & complex rotating and stationary Airfoils for Advanced Gas & Thermal power turbine engines to meet their global demand in the power generation industry.” The company noted that this international contract will be executed over a period of five years.

This recent order from Mitsubishi marks the second major contract secured by Azad Engineering in a short period. On September 24, the company announced a contract worth $16 million with Honeywell Aerospace ISC, USA, to manufacture and supply complex components for the aviation industry. Additionally, in July, Azad Engineering entered into a five-year agreement with Siemens Energy Global GmbH & Co. for the production of critical rotating components for gas and thermal turbine engines, further showcasing its expansion within the energy sector. 

In terms of year-to-date performance, Azad Engineering's stock has soared an impressive 138%, climbing from ₹699.30 to its current price of ₹1,670. The company reached an all-time high of ₹2,080 earlier this year. Azad Engineering IPO was listed at ₹720 during its initial public offering (IPO) in December 2023, and since then, it has gained over 127% from its listing price.

To Summarize

Azad Engineering, in Q1 FY25, the company reported a 29.6% rise in net sales to ₹98.41 crore and a substantial 131.5% increase in net profit, reaching ₹17.13 crore. It is the sole Indian provider of 3D airfoils to global OEMs, highlighting the industry's substantial entry barriers. Its stock surged 14.3% following a ₹700 crore order from Mitsubishi Heavy Industries for turbine components, marking a key milestone in the company’s growth. Azad Engineering shares climbed 138% year-to-date, supported by strategic contracts with major industry players like Honeywell and Siemens.