Azad Engineering stock flies 14% after order win from Japan's Mitsubishi

Shares of Azad Engineering skyrocketed 14.29 per cent at Rs 1,669.95 per share on the BSE after the company signed a contract worth Rs 700 crore with Japan based Mitsubishi Heavy Industries. 

 

“We hereby inform you that Azad Engineering Limited has signed Long Term Contract & Price Agreement (LTCPA) with Mitsubishi Heavy Industries Limited, Japan (MHI) for supply of highly engineered & complex rotating and stationary Airfoils for Advanced Gas & Thermal power turbine engines to meet their global demand in the power generation industry. This current Phase of contract, valued at $82.89 million (Rs 700 crores) is a robust step towards cementing our everlasting strategic relationship with Mitsubishi Heavy Industries Limited, Japan (MHI),” the company said in an exchange filing on Sunday. 

 

 

Azad Engineering stated that the order will be executed within 5 years. On  September 24, the company had won another order worth $16 million from Honeywell Aerospace ISC, USA, for manufacturing and supply of high complex components to meet the global demand in the Aviation industry. 

 

Azad Engineering is a leading manufacturer of qualified product lines, supplying global original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries. The company specialises in producing highly engineered, complex, and mission-critical components, with some products requiring a zero parts per million defects standard. 

 

Their aerospace and defence offerings include airfoils, blades, and components for engines, auxiliary power units (APUs), hydraulic systems, flight controls, and fuel and inerting systems for both commercial and defence aircraft, as well as various critical components for missiles and spacecraft.

 

The company has a total market capitalisation of Rs 9,713.74 crore. The company reached its 52-week of Rs 2,080 per on June 20, 2024 and marked a 52-week low of Rs 641.95 on January 17, 2024. 

 

At 9:50 AM, the stock price of the company was up 13.63 per cent at Rs 1,660.25 a piece on the BSE. By comparison, the BSE’s Sensex was down 1.04 per cent to 78,896.95 level.