Why Azad Engineering jump: Shares of Azad Engineering jumped over 13 percent on November 4 after it announced a major long-term contract worth Rs 700 crore with Mitsubishi Heavy Industries. At 9:30 am, the stock was trading 11 percent higher at Rs 1,619, marking a gain of 137 percent so far this year - far outpacing the Nifty 50's 11 percent gain. However, Azad Engineering shares recently suffered a monthly decline from July to October.

What AZAD Engineering said

"AZAD Engineering Ltd has signed a long-term contract and price agreement (LTCPA) with Mitsubishi Heavy Industries Ltd, Japan (MHI) to supply highly engineered and complex rotating and fixed airfoils for advanced gas and thermal power turbine engines to meet their global demand in the power generation industry," AZAD Engineering said in an exchange filing on November 3. The order will be executed over five years.

"This current phase of the contract, valued at ~US$82.89 million (~Rs 700 crore), is a strong step towards strengthening our enduring strategic relationship with Mitsubishi Heavy Industries Ltd., Japan (MHI)," the company said.

The deal follows a Rs 134-crore contract signed by Azad Engineering with Honeywell Aerospace in October to supply high-precision components for the aviation sector.

Azad Engineering, established in 1983, manufactures high-tech components for aerospace, defense, energy, and oil & gas OEMs. The company reported a 29.6 percent jump in net sales to Rs 98.41 crore in Q1 FY25 along with a remarkable 131.5 percent jump in net profit to Rs 17.13 crore.

Azad Engineering's share price history

The total market cap of Azad Engineering is Rs 9,713.74 crore. The company hit its 52-week high of Rs 2,080 per share on June 20, 2024, and its 52-week low of Rs 641.95 per share on January 17, 2024. At 9:50 am, the company's share price was up 13.63 percent at Rs 1,660.25 per share on the BSE. At the same time, the BSE Sensex was down 1.04 percent at 78,896.95.