Azad Engineering IPO: Should you subscribe to this Rs 740-crore issue?
Azad Engineering is one of the key manufacturers of qualified product lines supplying to global original equipment manufacturers in the aerospace and defence, energy, and oil and gas industries.
The company makes complex and highly-engineered precision forged and machined components that are mission and life-critical and hence, some of their products have a zero parts per million defects requirement.
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Azad Engineering IPO review: Should you bid?
Despite on-par valuation with peers, analysts advised investors to subscribe to the issue over the company's strong financial track record and superior outlook on growth.
«The company has a solid track record, a strong business plan, and management experience that has produced positive results in the past.
The valuation of the company stands at 292.7x P/E which appears fully priced as compared to peers. We recommend subscribing for listing gains,» said Canara Bank Securities.
«We expect Azad to trade at a premium to peers and thus we recommend subscribing to the IPO,» said Nirmal Bang.
«AEL is one of the fastest growing manufacturers with one of the highest EBITDA margins among the key players, backed by marquee investors, unique business model, strong TAM in various segments over the next few years, consistent track record of financial performance suggests a Subscribe rating for the long term,» said Reliance Securities.
Azad Engineering IPO size
The issue comprises fresh equity of Rs 240 crore and an offer for sale (OFS) of Rs 500 crore.
