ICICI Securities keeps buy call on Azad Engineering with target of Rs 3,100

Azad Engineering shares have jumped nearly 51 percent this year, and brokerage firm ICICI Securities believes the stock can climb another 28 percent.

Market Movement

The Hyderabad-based company closed slightly lower at Rs 2,466 per share on the BSE on Thursday. The stock saw a market value of Rs 15,925.86 crore on that day, touching a high of Rs 2,521.20 and a low of Rs 2,455.35. Over the past week, the share price fell 4.49 percent, and it dropped 16.97 percent over the last month. However, it gained 15.97 percent over six months and about 51.49 percent over the past two years.

Growth Triggers

ICICI Securities has kept its Buy rating on the stock while changing the target price to Rs 3,100 from Rs 3,200, basing it on estimated earnings for the 2029 financial year. Growth is expected to be supported by a strong order book and work in the aerospace sector. The company plans to focus its next phase of expansion on aerospace to improve its product mix. Additionally, the firm expects to deliver a second engine to the Defence Research and Development Organisation, which would create a new source of income if successful.

Context

Brokerage firms frequently review target prices and stock ratings based on company updates, market conditions, and future business projects. Defense and aerospace manufacturing firms in India often benefit from domestic research partnerships and government-backed sector growth.