Azad Engineering shares rally 5% on $54 million pact with GE Vernova’s steam power unit

Azad Engineering shares rallied 5.3% to Rs 1,634.95 on BSE on Monday after the precision engineering firm announced a $53.5 million agreement with GE Vernova’s Steam Power Services business for the supply of airfoils used in the nuclear and thermal power industries.

The six-year contract, running through 2030, covers the manufacturing and supply of complex rotating and stationary airfoils for advanced nuclear, industrial, and thermal power applications, the company said in a statement on Sunday.

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The pact comes on the heels of the inauguration of the company's 7,600 sq m lean manufacturing facility dedicated to meeting volume capacity obligations, it said.

The order also strengthens the company's existing strategic long-term relationship with GE Vernova's Steam Power Services business unit.

"This six-year agreement through 2030 strengthens our position in the global power generation supply chain and validates our precision engineering capabilities for critical applications," said Rakesh Chopdar, Chairman and CEO of Azad Engineering.

The company said it has been making significant investments in expanding its manufacturing capabilities as part of its strategic focus on long-term partnerships with global OEMs (original equipment manufacturers) across aerospace, defence, energy, and oil & gas sectors.

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Azad Engineering shares price target

As per Trendlyne data, the average target price of the stock is Rs 2,150, which shows an upside of 39% from the current market prices. The consensus recommendation from 3 analysts for the stock is a 'Strong Buy'.

Azad Engineering shares price performance

On Friday, Azad Engineering shares closed at Rs 1,552 on the BSE, down 1.9%, while the benchmark Sensex surged 0.32%. The stock has declined 15% year-to-date but gained 12% in the past one month. The company’s market capitalization stands at Rs 10,023 crore.

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