Azad Engineering Share Price Up About 51% in 2026: ICICI Securities Sees 28% Upside With Rs 3,100 Target After Q2 FY27 Results
- November 13, 2026
- Posted by: Ankit Jaiswal
- Category: News
Azad Engineering Rs 2,480.80 (13 Nov, 10 AM). ICICI Securities Buy, target Rs 3,100 (27.94% upside). Q2 sales Rs 190.9 Cr (+31.1%). PAT Rs 30.9 Cr (-5.2%).
Quick Answer
Azad Engineering shares have risen about 51% in 2026, and ICICI Securities still sees 27.94% upside with a Buy rating and a Rs 3,100 target. The brokerage trimmed its target from Rs 3,200 after Q2 FY27 profit fell 5.2% to Rs 30.9 crore, even though sales rose 31.1% and EBITDA margin held at 37.9%. The stock trades near Rs 2,481, about 20.6% below its 52-week high, and at a PE of about 116. Strong operating numbers and a premium valuation are pulling in opposite directions, which is the central tension for investors reading the note.
Azad Engineering share price has been one of the stronger performers among small and mid-cap engineering names in 2026, with reports putting the gain at about 51%. On 13 November the stock traded near Rs 2,480.80, up 0.5%, after ICICI Securities published a post-results note keeping its Buy call. Azad Engineering stock investors have had a strong year.
This article covers the target and the maths behind it, the Q2 FY27 numbers, the valuation, and the risks that could stop the stock from reaching the target. Azad Engineering shares have drawn attention from brokerages because of the pace of growth.
Click Here – Get Free Investment Predictions
ICICI Securities Target on Azad Engineering
| Item | Detail |
|---|---|
| Azad Engineering rating | Buy (maintained) |
| Target price | Rs 3,100 (earlier Rs 3,200) |
| Valuation basis | 60 times estimated FY29 earnings per share |
| Reference price in the note | Rs 2,423 |
| Implied upside | 27.94% |
| Price on 13 November 2026 (10 AM) | Rs 2,480.80 |
From the 13 November price, the same target implies upside of about 25%, which is our own calculation. A target is an analyst’s estimate at one point in time and it changes with earnings and with the multiple the market is willing to pay. The Azad Engineering stock has edged closer to the target since the post-results fall.
Azad Engineering Q2 FY27 Results
| Metric | Q2 FY27 | Change year on year |
|---|---|---|
| Net sales | Rs 190.9 crore | Up 31.1% |
| EBITDA | Rs 72.3 crore | Up 37.5% |
| EBITDA margin | 37.9% | Higher |
| Profit after tax | Rs 30.9 crore | Down 5.2% |
| Depreciation | Higher | Up 93% |
| Interest cost | Higher | Up 85% |
Operations were strong. An EBITDA margin of 37.9% is unusually high for a manufacturing company and reflects the specialised, high-precision nature of the parts it makes for aerospace, energy and defence customers. The profit decline came below that line, as new plants raised depreciation by 93% and borrowing for them lifted interest cost by 85%. That is why Azad Engineering shares attract growth-oriented buyers despite the profit dip.
The profit figure was also below what ICICI Securities had expected, which is why the target was reduced even though the rating stayed at Buy. The result explains why Azad Engineering shares fell after the announcement.
Azad Engineering Share Price: Valuation Check
| Data point | Value |
|---|---|
| Market capitalisation | About Rs 15,926 crore |
| PE ratio (industry PE) | 115.72 (47.91) |
| Price to book value | 9.98 |
| Return on equity | 8.59% |
| Debt to equity | 0.36 |
| 52-week high | Rs 3,126 |
| Dividend yield | 0.00% |
A PE of about 116 and a return on equity under 9% mean investors are paying for earnings that have yet to arrive. The Azad Engineering stock fell 6.16% to Rs 2,423 on 6 November after the results, and has recovered about 2.4% from that level, which is our own calculation. In short, the Azad Engineering stock is priced for delivery.
What Could Go Wrong
Premium valuations are sensitive to small changes in expectations. If new capacity fails to generate the sales needed to absorb higher depreciation and interest, profit growth could lag revenue growth again. Azad Engineering shares would feel that sensitivity first.
Order timing matters too. Aerospace and energy contracts are lumpy, so a delay of a few weeks can move a quarter. Different brokerages also hold different views, and published targets vary, so the headline number should be read with the multiple and earnings assumptions behind it. Any delay can weigh on the Azad Engineering stock for a quarter.
Azad Engineering Business Context
Azad Engineering makes precision-engineered, safety-critical components for aerospace, energy and defence customers. The work needs tight tolerances, long qualification cycles and high capital spending, which is why margins are high but depreciation and interest costs also rise quickly when new lines start up. Once a part is qualified for a customer’s platform, orders tend to repeat for years. Azad Engineering shares reflect that long-cycle, high-margin model.
That feature explains both the premium valuation and the profit dip. Investors accept a high multiple because revenue is sticky and margins are strong, but they also need to see capacity convert into sales before the extra costs drag on profit.
Azad Engineering Stock Analysis: Bull and Bear Views
The bull view points to 31.1% sales growth, a 37.9% EBITDA margin and an order book that supports multi-year growth. If new capacity fills up, depreciation and interest would be absorbed and profit growth would catch up with revenue growth. A brokerage Buy call with a Rs 3,100 target also supports sentiment. For bulls, the Azad Engineering stock is a long-term compounding story.
The bear view highlights a PE of about 116, a return on equity of 8.59% and a profit decline in the latest quarter. A premium valuation leaves little room for a missed quarter. The stock is also volatile, with a 6.16% fall on one day after results, and it remains about 20.6% below its 52-week high. For bears, Azad Engineering shares cost too much for current returns.
How the Rs 3,100 Target Is Built
The target applies a multiple of 60 times to estimated earnings per share for FY29, which means it depends on profit two years ahead. Earlier the multiple was lower and the target was higher at Rs 3,200, because earlier earnings estimates were higher. Small changes in either the multiple or the earnings estimate move the target a lot, so the number is best read as a range of outcomes and not a promise. Readers following the Azad Engineering stock should track both inputs each quarter.
Compare engineering stocks on the Univest Screener
Download the Univest iOS App or Univest Android App to follow analyst targets and price alerts.
Conclusion
The Azad Engineering share price tells a story of strong operations and a demanding valuation. ICICI Securities’ Rs 3,100 target implies about 28% upside from its reference price, but profit fell 5.2% in Q2 and the PE is near 116. Watch depreciation, interest cost and order flow in the next two quarters, because they will decide whether earnings catch up with the share price.
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).
Frequently Asked Questions
What is the ICICI Securities target for Azad Engineering stock?
Ans. ICICI Securities maintained a Buy rating with a target price of Rs 3,100 after the Q2 FY27 results. The target values the stock at 60 times estimated FY29 earnings per share. Against the reference price of Rs 2,423 used in the note, the implied upside was 27.94%.
Why did ICICI Securities trim the target from Rs 3,200?
Ans. The earlier target was Rs 3,200. The cut followed Q2 FY27 profit that came in below the brokerage’s expectations. Profit after tax fell 5.2% to Rs 30.9 crore even though sales rose 31.1%, because depreciation rose 93% and interest cost rose 85% as new capacity came on stream.
What were the Azad Engineering Q2 FY27 results?
Ans. Net sales were Rs 190.9 crore, up 31.1% year on year. EBITDA was Rs 72.3 crore, up 37.5%, with a margin of 37.9%. Profit after tax was Rs 30.9 crore, down 5.2%. Strong operating numbers were offset by higher depreciation and interest.
How much has the Azad Engineering stock risen in 2026?
Ans. The headline figure is a rise of about 51% in 2026, and the stock was near Rs 2,481 on 13 November. The exact percentage depends on the base date used, since the price was near Rs 1,545 in mid-January. The stock is about 20.6% below its 52-week high of Rs 3,126, which is our own calculation.
Is Azad Engineering expensive?
Ans. On trailing numbers the stock trades at a price to earnings ratio of about 115.7 against an industry multiple of about 47.9, with a price to book of 9.98 and a return on equity of 8.59%. Those multiples price in strong growth, which leaves little room for disappointment.
What are the risks in the Azad Engineering stock?
Ans. Key risks are a premium valuation, rising depreciation and interest costs, dependence on aerospace, energy and defence customers and the timing of large orders. Analysts also publish different targets for the same stock, so investors should read the assumptions and not only the headline price.
What does Azad Engineering manufacture?
Ans. The company makes precision-engineered, safety-critical components, including parts used in aerospace, energy and defence equipment. These products need long qualification periods and tight tolerances, which supports high margins once a customer has approved a part.
Is the 51% rise in 2026 reliable?
Ans. It is a media figure and depends on the starting date. Using the mid-January price of about Rs 1,545 and the 13 November price of Rs 2,480.80, the gain is closer to 60%, which is our own calculation. Either way, the stock has risen strongly this year and is still below its 52-week high.
