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Azad Engineering Ltd has gained 85% in the past six months, and the stock has received a fresh boost from ICICI Securities, which retained its BUY rating and raised its target price to ₹3,200 from ₹1,900 earlier. The brokerage has rolled forward its valuation to FY29 and applied a target multiple of 55 times estimated FY29 earnings per share (EPS). The revised target reflects the company's expanding manufacturing capacity, improving order visibility, and expectations of stronger earnings over the coming years. "We are introducing FY29 estimates and rolling over our target multiple to FY29, arriving at a target price of INR 3,200 (55x FY29E EPS)," ICICI Securities said. Azad Engineering's stock has already delivered strong returns across multiple timeframes. The shares have gained around 3% in one month, 38% in three months, and 77% over the past year, highlighting the sharp re-rating witnessed in the stock. According to the brokerage, a key development has been the inauguration of two dedicated manufacturing facilities for GE Vernova's gas power business at Azad Engineering's Centre of Excellence & Innovation Centre in Hyderabad. Spread across 15,200 square metres, the facilities represent the company's largest single-tranche capacity addition so far. The new facilities take Azad Engineering's dedicated GE footprint to three units and deepen its integration with the global energy major. Of the seven dedicated facilities planned by the company, six have now been commissioned, along with a forging unit, it noted. ICICI Securities expects follow-on large orders from GE Vernova, which could provide the newly commissioned facilities with an estimated five to six years of visibility. The brokerage also stated that only one of the seven planned dedicated facilities remains to be commissioned, with completion expected by the end of FY27. "Out of the 7 planned facilities, Azad now has only one dedicated facility remaining to be commissioned, which is expected by end-FY27. This marks the start of the execution phase, which will likely drive earnings for the next 2-3 years," ICICI Securities said. With most of the planned capacity now coming online, ICICI Securities expects the focus to shift towards converting the new capacity into higher throughput and earnings, while working capital normalises. The brokerage also expects Azad Engineering to announce another phase of growth capital expenditure to maintain growth visibility beyond FY30. The company has also expanded its presence in the aerospace and defence segment. In July 2026, Azad Engineering delivered India's first indigenous turbojet engine to GTRE/DRDO. Weapon-integration testing and subsequent certification are expected to determine the path towards serial production, potentially opening another avenue for future growth. Management has maintained its guidance of more than 25% revenue CAGR, along with an operating margin range of 32-35%. However, ICICI Securities believes the guidance could remain conservative given the prevailing geopolitical environment. The brokerage has built in a 33% revenue CAGR between FY26 and FY29, with margins estimated at 37-38%, partly supported by rupee depreciation. The company's latest quarterly performance also reflected strong operating momentum. For the quarter ended June 30, 2026, consolidated net profit rose 20.2% year-on-year to ₹35.7 crore, while revenue from operations increased 26% to ₹172.5 crore from ₹137 crore in the year-ago quarter. EBITDA grew 31% to ₹64.3 crore from ₹49.1 crore, while the EBITDA margin expanded to 37.3% from 35.8%. On a standalone basis, total income increased to ₹174.5 crore from ₹143.7 crore, while quarterly profit rose to ₹36.4 crore from ₹30 crore. Azad Engineering manufactures precision-engineered components for the energy and power generation, aerospace and defence, and oil and gas industries. Its products are supplied to markets including the US, UK, China, Japan, Saudi Arabia, Singapore, Germany and the Middle East. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! 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