Azad Engineering Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Azad Engineering Ltd trades at ₹2,293, in a confirmed uptrend and 16 weeks into that stage. That is +20.7% against its own 200-day average. It sits at 83% of a 52-week range of ₹1,391 to ₹2,480. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (1 week and counting).

Today the stock is in a confirmed uptrend — week 16 of stage 2, confirmed. At ₹2,293 it trades +20.7% versus its 200-day average and sits at 83% of its 52-week range (₹1,391–₹2,480).

Against the market, two honest reads. Cumulative: over the last 2.6 years the stock moved +231% while the NIFTY 500 moved +21% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (1 week and counting; last ahead the week of 2026-07-24) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Azad Engineering Ltd trades at 111.0× P/E, mid-range by its own standards (67th percentile). Its long-run median P/E is 100.3×, measured across 2.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 111.0× is mid-range by its own standards (67th percentile), against a long-run median of 100.3× measured over 2.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +52.2% against a +58.0% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Azad Engineering Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 12.4% — the per-curve reads carry the story. The read is built from 11 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

57.4/100 — rank 9 of 24 in Aerospace & Defence - Equipments · 89% evidence confidence

Azad Engineering Ltd scores 57.4 out of 100 against the 24 companies it is compared with in Aerospace & Defence - Equipments, ranking 9. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 24.5 + 12.9 + 8 + 12 = 57.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Azad Engineering Ltd reported ₹162 Cr of revenue in the Mar 26 quarter, +27.6% year on year. That is the 10th straight quarter of year-on-year growth. Over 5 years it has compounded at 37.4% a year. The last full year, FY26, came in at ₹603 Cr. The last four reported quarters add to ₹604 Cr.

FY26 revenue came in at ₹603 Cr (+31.9% on the year), capping 5 years at 37.4% compound. The latest quarter (Mar 26) printed ₹162 Cr, +27.6% year on year — the 10th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +32.6% growth against the decade's 37.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +32.2% over the last 4 quarters against +33.1%/yr over the last 8 — stabilising; TTM profit +54.0% vs +52.0%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Azad Engineering Ltd's operating margin is 38.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 6 fiscal years the operating margin has ranged 23.0% to 37.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 38.0%, +2.0 pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 23.0%–37.0%, and FY26's 37.0% is the top of that band — a record year.

Why the margin moved: operating margin went +2.1 pp year on year while gross margin went +5.9 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Azad Engineering Ltd earned ₹37.0 Cr of net profit in the Mar 26 quarter, +48.0% year on year. It is the 8th consecutive quarter of growth. Full-year FY26 profit was ₹134 Cr. The 5-year compound rate is 62.0%. That is 22.8% of the quarter's revenue. The same quarter a year earlier earned ₹25.0 Cr.

Mar 26 profit was ₹37.0 Cr, +48.0% year on year — the 8th consecutive quarter of growth. On the full year, FY26 printed ₹134 Cr (+54.0%), and the 5-year compound rate is 62.0%.

Why profit moved: revenue contributed +27.6% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +55.4% vs revenue +32.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −26% of Azad Engineering Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−119 Cr of operating cash against ₹134 Cr of profit. After ₹573 Cr of capital spending, ₹−692 Cr was left as free cash.

FY26: operating cash of ₹−119 Cr against reported profit of ₹134 Cr, leaving free cash of ₹−692 Cr after ₹573 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −26% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −26%: the cash cycle stretched 1,643 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 1,643 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Azad Engineering Ltd's cash conversion cycle runs 1,720 days in FY26, up from 77 days in FY21. Capital spending ran ₹884 Cr over the last 3 years. At FY26 sales of ₹603 Cr each day of that cycle holds about ₹1.7 Cr, so roughly ₹2,842 Cr sits inside the business at any moment.

FY26: debtors at 189 days, inventory at 2,067 days — roughly 68.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 1,720 days, looser than FY21's 77.

The full loop: cash goes out to suppliers and production on day 0; stock waits 2,067 days to sell; customers pay about 189 days after that; and suppliers themselves are paid at 536 days — netting out to the 1,720-day cycle.

In money terms: at FY26 sales of ₹603 Cr, each day of the cycle holds about ₹1.7 Cr — so the 1,720-day loop keeps roughly ₹2,842 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹884 Cr over the last 3 fiscal years against ₹103 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹257 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Azad Engineering Ltd earns a ROCE of 12% in FY26. That is up from a trough of 12% in FY25. Return on invested capital clears the cost of that capital by −4.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 22.2% net margin on 0.27× asset turns.

FY26 ROCE is 12%, recovered from a FY25 trough of 12% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 22.2% net margin × 0.27× asset turns × 1.44× balance-sheet leverage ≈ 8.6% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 7.5% − 12.0% = a −4.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Azad Engineering Ltd carries total debt of ₹474 Cr against shareholder equity of ₹1,529 Cr as of Mar 26, a debt-to-equity of 0.31. On the annual view that ratio went from 1.48 in FY23 to 0.31 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹474 Cr against shareholder equity of ₹1,529 Cr — a debt-to-equity of 0.31. On the annual view, debt-to-equity went from 1.48 (FY23) to 0.31 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 10.1 points of Azad Engineering Ltd over 8 quarters, the biggest move on the register. That takes promoters to 55.8% of the company. Domestic institutions moved +6.9 points over the same window, to 10.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −10.1 points over 8 quarters to 55.8%; Domestic institutions: +6.9 points over 8 quarters to 10.3%; Foreign institutions: +3.6 points over 8 quarters to 13.3%.

🚨 Why the register moved: promoters drove it (−10.1 points), absorbed on the other side by domestic institutions (+6.9 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Azad Engineering Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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