Shares of Azad Engineering Ltd. extended their impressive gains on Wednesday, reaching an all-time high of Rs 3,125. The company's stock has delivered multibagger returns to investors, rallying more than 102% over the past six months alone.
This significant surge comes on the heels of the inauguration of two exclusive lean manufacturing facilities dedicated to GE Vernova's Gas Power business. Located at Azad's Tunikibollaram Center of Excellence, each facility spans 7,600 square meters.
Goldman Sachs Maintains 'Buy' Rating
Investment bank Goldman Sachs has reiterated its 'Buy' rating on Azad Engineering, citing the strategic importance of these new facilities. The firm highlighted that the new units are crucial for manufacturing highly engineered rotating and stationary airfoils, along with specialized machined parts.
Goldman Sachs noted that these additions significantly strengthen Azad's exposure to the ongoing gas turbine upcycle, a key medium-term growth driver for the company. The bank emphasized Azad's progression from a component supplier to a broader platform partner, supported by a substantial order book that provides multi-year revenue visibility.
Expansion and Future Prospects
The new facilities are part of Azad's broader 94,900 square meter Phase-1 expansion at Tunikibollaram, marking a substantial increase from its original 20,000 square meters of legacy facilities. This development brings Azad's total dedicated facilities to six since its listing, including a fourth dedicated facility commissioned for Baker Hughes in April 2026.
Goldman Sachs projects a 12-month target price of Rs 3,315 per share for Azad Engineering. The firm views these developments as supportive of a multi-year ramp-up in Azad's energy business, driven by strong gas turbine demand and deepening relationships with key clients like GE Vernova.
Management has indicated that construction for Phase 2, which envisages an additional 67,300 square meters of capacity, will commence after the completion of Phase 1. Beyond gas turbines, Azad Engineering also manufactures critical products for defense, civil aircraft, and thermal power sectors, further diversifying its robust engineering portfolio.