CMP ₹1,798.80 | FY25 PAT ₹88.5 Cr | EPS ₹14.87 | Q4 PAT ₹26 Cr | Debt-Equity 0.0017
📌 At a Glance:
Azad Engineering just posted FY25 results that should make any defence PSU jealous — ₹88.5 crore profit, ₹14.87 EPS, and a debt-equity ratio so low it’s basically allergic to borrowing. And what did the market say?
“Haan theek hai, par aur kya karta hai company?”
Let’s fix that.
📊 Profit Growth Breakdown – Proper Engineering, No Jugaad
| Period | PAT (₹ Cr) | YoY Growth |
|---|---|---|
| Q4 FY24 | ₹14.9 Cr | — |
| Q4 FY25 | ₹26.0 Cr | 🔼 74.5% |
| FY24 | ₹58.8 Cr | — |
| FY25 | ₹88.5 Cr | 🔼 51.0% |
🔧 This is not quarterly growth. This is how you launch a turbocharger at a board meeting.
💰 FY25 P&L Snapshot (Standalone – Audited)
| Metric | ₹ Cr |
|---|---|
| Revenue from Operations | ₹452.9 |
| Other Income | ₹11.5 |
| Total Income | ₹464.5 |
| Total Expenses | ₹348.2 |
| Profit Before Tax | ₹116.1 |
| Net Profit (PAT) | ₹88.5 |
| EPS (Diluted) | ₹14.87 |
| PAT Margin | ~19% |
Translation:
Azad isn’t running a manufacturing company. It’s running a precision-margin machine.
🧾 Balance Sheet Highlights – Clean Enough to Serve Prasadam On
| Metric | ₹ Cr |
|---|---|
| Total Assets | ₹1,860.7 |
| Equity Share Capital | ₹12.9 |
| Reserves & Surplus | ₹1,381.0 |
| Total Equity | ₹1,393.7 |
| Total Borrowings | ₹2.43 |
| Debt-Equity Ratio | 0.0017 |
| Cash & Bank Balance | ₹106.4 |
| Trade Receivables | ₹223.5 |
| Inventories | ₹189.3 |
🧠 This is what happens when CFOs don’t drink sugar-free Frooti at AGMs.
💸 Cash Flow Statement – Not Sexy, But Solid
- Operating Cash Flow: ₹53.7 Cr
- Investing Cash Flow: Negative (CapEx-focused)
- Financing Cash Flow: Flat (no drama)
- Net Cash Change: +₹12.6 Cr
No flashy IPO money. No buyback dhamaka. Just… fundamentals.
🚀 So What Does Azad Actually Do?
Azad Engineering makes:
- Precision-engineered components for defence, aerospace, turbomachinery, and energy sectors
- Export-focused orders from global OEMs
- Approved vendors for HAL, BHEL, DRDO, GE, Mitsubishi, Siemens
They’re not selling screws. They’re building the spine of India’s missiles, turbines, and stealth hardware.
🧠 EduInvesting Verdict:
“Infra Company with the Balance Sheet of IT, and the Silence of a DRDO Scientist”
✅ Profit up 50%
✅ EPS ₹14.87 with zero dilution
✅ Margin ~19%
✅ Net debt basically zero
✅ No gimmicks, just execution
🚨 So Why No Rally?
❌ No dividend
❌ No bonus issue
❌ No paid influencer campaigns
❌ No YouTube thumbnail saying “MULTIBAGGER ALERT 🚨”
📉 CMP ₹1,816 = still sleeping.
Let’s math that:
- ₹88.5 Cr PAT
- Shares outstanding = 12.916 Cr
- EPS = ₹14.87
- CMP = ₹1,798
- PE Ratio = 121x 🫠
This is not undervalued — it’s already priced like a growth rocket. Unless FY26 hits ₹150+ Cr PAT, rerating might be… limited.
🔍 EduMath Valuation Check
Market Cap: ~₹2,300 Cr
PAT FY25: ₹88.5 Cr
Trailing P/E: ~26x
Fair? Let’s see…
| Scenario | FY26 PAT | EPS | P/E | Target Price |
|---|---|---|---|---|
| Base Case | ₹110 Cr | ₹18 | 30x | ₹540 |
| Bullish Case | ₹135 Cr | ₹22 | 35x | ₹770 |
| Fantasy SaaS Case | ₹150 Cr | ₹25 | 40x | ₹1,000 |
So is ₹1,798 too much?
Yes. Unless FY26 numbers surprise like an ISRO moon landing.
🎯 EduFair Value Range: ₹750 – ₹1,000
Holding Period: 12–18 months
EduRating: ⚙️ “Boring but beautiful”
⚠️ Risks
- Defence orders can be lumpy
- Exports vulnerable to OEM cuts
- No moat in terms of IP — just execution strength
- If FY26 isn’t stronger, current P/E will start looking frothy
🧾 Final EduTake:
Azad Engineering is what happens when a company:
- Doesn’t fake growth
- Doesn’t scream “multibagger”
- Just shows up every quarter and delivers
It’s boring. It’s real. It’s not for penny stock degenerates.
“If HAL is the baba, Azad might be the shishya. But make no mistake — this shishya is solving defence margin maths better than any PSU.”
Author: Prashant Marathe
Date: May 23, 2025
Tags: Azad Engineering, FY25 Results, Defence Manufacturing, Q4 PAT, Infra Stocks, Debt Free, Export Stocks, EduInvesting Style, India Precision, Funny Finance
