Is Azad Engineering the Best Stock in Its Sector? A Look at the Numbers
- September 23, 2026
- Posted by: Lakshit Sharma
- Category: Market
Azad Engineering CMP Rs 2,734 (23 Sep 2026). Market cap Rs 17,920 Cr. ROE 8.69%. P/E 128.64x versus Industry P/E 48.80x.
Quick Answer
Azad Engineering is one of the names investors compare when screening the Capital Goods sector, built on a 8.69% return on equity and a P/E of 128.64x against an Industry P/E of 48.80x. Whether Azad Engineering is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Capital Goods sector peers, so you can judge that for yourself.
Is Azad Engineering the best stock in its sector? The stock trades on the NSE at Rs 2,734 as of 23 September 2026, within its 52-week range of Rs 1,360.00 to Rs 2,986.60. Azad Engineering Ltd manufactures precision-forged and machined components for aerospace, defence and energy customers globally.
Azad Engineering sits in the Capital Goods sector, and its 8.69% ROE and 128.64x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
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About Azad Engineering
Azad Engineering Ltd manufactures precision-forged and machined components for aerospace, defence and energy customers globally. It manufactures precision-forged and machined components for aerospace, defence and energy customers globally, a high-precision manufacturing niche. At a market capitalisation of Rs 17,920 Cr, it is tracked as part of the Capital Goods sector on Univest.
Is Azad Engineering the Best Stock in Its Sector?
Azad Engineering makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 8.69% ROE with a 128.64x P/E against the sector’s 48.80x Industry P/E. Azad Engineering’s 128.64x P/E is well above the 48.80x Industry P/E despite an 8.69% ROE, one of the richer valuations in this batch, priced for continued growth in its aerospace and energy precision component export business.
| Metric | Azad Engineering |
|---|---|
| CMP (NSE) | Rs 2,734.00 |
| 52-Week High / Low | Rs 2,986.60 / Rs 1,360.00 |
| Market Cap | Rs 17,920 Cr |
| P/E (TTM) vs Industry P/E | 128.64x vs 48.80x |
| P/B | 11.72 |
| ROE | 8.69% |
| EPS (TTM) | Rs 21.57 |
| Dividend Yield | 0.00% |
| Debt to Equity | 0.31 |
Compare Azad Engineering Against Other Capital Goods Sector Stocks
How Azad Engineering Compares Against Its Capital Goods Sector Peers
The table below sets Azad Engineering against 2 other Capital Goods sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| Azad Engineering | 17,920 | 128.64 | 8.69% | 0.31 |
| Data Patterns (India) | 27,056 | 100.98 | 15.63% | 0.00 |
| Avalon Technologies | 16,524 | 123.65 | 15.65% | 0.29 |
| Peer average (2 companies) | – | 112.31 | 15.64% | 0.14 |
Against this peer set, Azad Engineering’s 8.69% ROE is below the 15.64% peer average, and its P/E of 128.64x runs above the peer average of 112.31x. Azad Engineering’s 128.64x P/E is well above the 48.80x Industry P/E despite an 8.69% ROE, one of the richer valuations in this batch, priced for continued growth in its aerospace and energy precision component export business.
What Makes Azad Engineering Worth Watching in Capital Goods
- Reasonable ROE for precision forging: An 8.69% ROE is a modest but positive figure for a business investing heavily in aerospace-grade manufacturing capacity.
- Low leverage: A debt to equity ratio of 0.31 is manageable for a precision forging and machining business.
- Aerospace and energy precision components niche: Manufacturing precision-forged components for global aerospace, defence and energy customers gives Azad Engineering access to a high-barrier, high-margin manufacturing segment.
Azad Engineering Valuation: Is It Justified?
Azad Engineering’s 128.64x P/E is well above the 48.80x Industry P/E despite an 8.69% ROE, one of the richer valuations in this batch, priced for continued growth in its aerospace and energy precision component export business. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Arvind Fashions the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track Azad Engineering and other Capital Goods sector stocks.
How to Track Azad Engineering Before You Invest
Before deciding whether Azad Engineering deserves its label as the best stock in its sector for your own portfolio, compare it directly against Capital Goods sector peers using the steps below.
- Open the Univest Screener and search for Azad Engineering to view live price, valuation ratios, and peer comparisons within the Capital Goods sector.
- Compare its P/E, P/B, and ROE against other Capital Goods sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
Azad Engineering earns a place in the best stock in its sector conversation on the strength of a 8.69% ROE and a P/E of 128.64x against a 48.80x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is Azad Engineering the best stock in its sector?
Ans. Azad Engineering has a 8.69% ROE and trades at 128.64x P/E against a 48.80x Industry P/E, and compares below the peer average ROE of 15.64% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of Azad Engineering?
Ans. Azad Engineering was trading at Rs 2,734.00 on the NSE as of 23 September 2026, within its 52-week range of Rs 1,360.00 to Rs 2,986.60.
What sector does Azad Engineering belong to?
Ans. Azad Engineering is classified under the Capital Goods sector on Univest.
How does Azad Engineering compare to its sector peers on P/E?
Ans. Azad Engineering’s P/E of 128.64x is above the 112.31x average of the 2 named peers compared in this article.
What is Azad Engineering’s return on equity?
Ans. Azad Engineering reported a return on equity of 8.69%, which is below the 15.64% average of its named peers in this comparison.
Should I invest in Azad Engineering based on its sector position?
Ans. Azad Engineering’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.