Check Before You Invest : Azad Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Azad Engineering Ltd belong to?

Azad Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Azad Engineering Ltd a good quality company?

Azad Engineering Ltd is a average quality company, based on a somewhat consistent 5-year financial track record.

Q.3 Is Azad Engineering Ltd undervalued or overvalued?

Azad Engineering Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Azad Engineering Ltd a good buy now?

Azad Engineering Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of Azad Engineering Ltd?

Azad Engineering Ltd Return on capital employed is 12.31% for FY-2025, which is below its 5-year historical median of 15.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.2 Return on Asset of Azad Engineering Ltd?

Azad Engineering Ltd Return on Asset is 6.6%, which is in line with its 5-year historical median of 6.6%, indicating stable asset utilization efficiency.

Q.3 Return on Equity (ROE) of Azad Engineering Ltd?

Azad Engineering Ltd Return on equity is 8.58% for FY-2025, which is below its 5-year historical median of 13.8%, indicating the business is making worse use of its shareholders capital.

Q.4 Gross Profit margin of Azad Engineering Ltd?

Azad Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 34.1% for FY-2025, which is above its 5-year median of 26.7%, indicating increasing margins.

Q.5 Operating Profit Margin of Azad Engineering Ltd?

Azad Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.55% for FY-2025, which is above its 5-year median of 32.09% indicating increasing margins.

Q.6 Net Profit Margin of Azad Engineering Ltd?

Azad Engineering Ltd Net Profit Margin is 19.55% for FY-2025, is above with its 5-year median of 14.4%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	34.1	26.7
Operating Profit Margin	35.55	32.09
Net Profit Margin	19.55	14.4

Q.7 Debt to Equity ratio of Azad Engineering Ltd?

Azad Engineering Ltd Debt-to-Equity ratio is 0.17, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Azad Engineering Ltd?

Azad Engineering Ltd Debt to cash flow from operations is 3.79, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Azad Engineering Ltd?

Promoters hold 55.84% of the Azad Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Azad Engineering Ltd vs industry peers?

Azad Engineering Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.01%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	12
Gross Profit Growth	53.5	NAN
Operating Profit Growth	37.6	NAN
Net Profit Growth	50.9	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.34	0.91
ROE	8.58	12.81
ROCE	12.31	15.04
Cash Conversion Cycle (days)	209.83	107

Valuation & price assessment

Q.1 Stock return of Azad Engineering Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 39.78% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	39.8%

Q.3 Valuation ratios of Azad Engineering Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	113.84	133.79	29.52
Price to Book	9.25	7.37	2.90
Price to Sales	25.13	23.67	2.94
EV to EBITDA	58.2	58.81	15.76

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