Azad Engineering - The Best Is Yet To Come: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We believe that it is less than prudent to value Azad Engineering Ltd. on relative valuation at this point in time, as its growth trajectory is much steeper compared to peers. Besides, the value of some of the orders in the public domain is still not known; hence, there is an upside risk to our existing earnings estimates in the medium term. Given the orders, long-term contracts/agreements and roadmap worth upwards of Rs 30 billion, provided by the existing customers, we believe that four years of revenue is already covered. Besides, management mentioned that it has visibility on the entire 95,000m2 facility due to commencement of operations from FY27, post which there is another 75,000m2 facility awaiting commencement. In our view, both facilities will feed rapid earnings growth until FY35E. Hence, we switch over to the DCF methodology until FY35 in order to value the earnings more appropriately. Our target price works out to Rs 2,450/share, implying an upside of 46% on current market price. We maintain Buy on Azad. .Key RisksDelay in approvals from OEMsProduct concentration around air foilsSlowdown in aerospace sector might result in lower revenue growth.Click on the attachment to read the full report:.Bajaj Auto Says Open To Bigger CNG Motorcycle After Freedom 125 Launch.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Azad Engineering - The Best Is Yet To Come: ICICI Securities

Azad is on the long runway of significant earnings growth with significant total addressable market still available, says the brokerage.

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Azad Engineering - The Best Is Yet To Come: ICICI Securities

Azad is on the long runway of significant earnings growth with significant total addressable market still available, says the brokerage.

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