Azad Engineering - Niche With Scale: DRChoksey

DRChoksey Research Report

Azad Engineering Ltd. is operating in a niche segment which revolves at the core of life critical and mission critical engineering capabilities. It produces key components used in the aerospace, defence, oil and gas and industrial work and supplies it to global OEMs.

Azad Engineering has delivered 3.9 million units between FY-09 to FY23, it has 45 qualified manufacturing processes and manufactures over 1400 qualified parts and components for the renowned OEMs.

Robust Growth Prospects

Azad Engineering's growth is propelled by several factors: providing components for new engine models, broadening market share through diversification into related areas, increase in defense budgets, and growing demand for commercial airplanes.

To support this growth, Azad is expanding its manufacturing space from 20,000 to 190,000 square meters, expecting incremental revenue to come from FY26 onwards.

The aerospace and defense market is projected to expand at a 9% compound annual growth rate from Rs 900 billion to Rs 1,530 billion over 2022-2027, while the Energy sector's Total Addressable Market is estimated at Rs 283 billion.

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