Azad Engineering share price jumped over 5% in Tuesday’s trading session defying stock market sentiment. The stock opened at ₹2,779 apiece on NSE today, as compared to previous close of ₹2,723.20 on Monday and touched an intraday high of ₹2,918.
Meanwhile, equity benchmark indices Sensex and Nifty fell sharply in early trade on Tuesday, dragged down by elevated crude oil prices amid uncertainty over the West Asia situation and continued foreign fund outflows. The 30-share BSE Sensex declined 503 points to 72,260.09, while the 50-share NSE Nifty fell 151 points to 22,626.50 in early trading.
What’s behind the rally?
The rally in the Azad Engineering shares came in after the company announced that it has inaugurated two exclusive Lean Manufacturing Facilities for GE Vernova’s Gas Power business at its Centre of Excellence & Innovation Ceuhe in Tunikibollaram, Hyderabad, on September 28, expanding its footprint to three dedicated facilities for the global energy giant.
“The two state-of-the-art lean manufacturing facilities, each spanning 7,600 sq. m are dedicated to manufacturing highly engineered rotating and stationary airfoils and specialized machined parts, meeting GE Vernova’s global demand in the power generation and essential industries,” the company said in the filing.
Azad Engineering share price performance
Azad Engineering share price has delivered strong returns across multiple time frames. The stock gained 6.31% in the past week and 3.49% over the last one month, indicating continued positive momentum in the near term. Over the three-month period, the stock has surged 48.55%, highlighting a sharp rise in investor interest during the period.
The stock’s gains become more pronounced over the medium term, with shares rising 98.73% in six months. On a year-to-date basis, the stock has advanced 81.53%, while its one-year return stands at 84.94%.
Over a two-year period, Azad Engineering stock has gained 97.41%, nearly doubling investors’ money during the period.
Azad Engineering share price outlook
Global brokerage firm Goldman Sachs has retained its ‘Buy’ rating on Azad Engineering, along with a target price of ₹3,315.
The brokerage said Azad Engineering’s strong order book provides multi-year revenue visibility, as the company continues to ramp up and expand its manufacturing capabilities.
Goldman Sachs also highlighted the potential for additional growth opportunities through further product and customer qualifications. According to the brokerage, these qualifications could broaden the company’s addressable market beyond its existing order book and customer base.
According to Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, Azad Engineering continues to show positive momentum, and the stock could see further upside if it sustains above the key support levels.
“The immediate targets are placed at ₹3,020 and ₹3,075, with ₹3,100-plus possible on sustained strength. Traders can maintain a stop-loss at ₹2,820,” Ojha said.
Meanwhile, Hitesh Tailor, Technical Research Analyst at Choice Broking, believes that from a positioning standpoint, a Buy on Dips approach allows for strategic entry near 2,850–2,900 on minor pullbacks toward the breakout zone, with a secondary value zone positioned around 2,750–2,800 near 20-day EMA support.
“On the upside, initial overhead resistance is positioned around 3,000–3,050; a sustained closing above 3,050 would signal potential toward the 3,250-3300 area. To manage risk against an unexpected trend reversal, a daily closing stop-loss should be maintained below 2,680,” Tailor said.
