ICICI Direct Maintains Buy Rating on Azad Engineering Shares

Azad Engineering shares have recorded a notable upward movement, climbing nearly 51.4 percent so far in 2026. Despite this substantial rally, market experts suggest that the defence stock could still experience further growth supported by a solid order book and ongoing expansion within the aerospace segment. Brokerage firm ICICI Direct continues to track the company closely as investors review market performance and valuation metrics.

On Thursday, November 12, the company's shares closed 0.26 percent lower at ₹2,466 per piece on the Bombay Stock Exchange. Throughout the trading session, the stock registered an intraday high of ₹2,521.20 and touched a low of ₹2,455.35, resulting in a total market capitalisation of ₹15,925.86 crore. Recent price movements indicate a decline of 4.49 percent over the past week and 16.97 percent over the last month, even as the longer-term horizon reflects positive momentum with a 15.97 percent gain in six months and a larger surge over the past two years.

Azad Engineering shares see strong yearly gains while analysts project further upside potential.

Addressing the outlook, ICICI Securities retained its 'Buy' rating on the defence stock while adjusting its target price to ₹3,100 per share, down from an earlier projection of ₹3,200. According to the brokerage report, the target is calculated on the basis of estimated earnings per share for the financial year 2029. The Hyderabad-headquartered enterprise is also preparing to deliver its second engine to the Defence Research and Development Organisation. Successful completion of this delivery would establish an additional revenue stream that has not yet been factored into current estimates.

Capacity Expansion

The next phase of operational scaling for the manufacturer is anticipated to concentrate on the aerospace division. This upcoming expansion aims to upgrade the overall product mix and strengthen the firm's manufacturing capabilities to meet increasing sector demands.

Why it matters

This update provides market participants with fresh insights into the valuation and growth trajectory of a prominent defence sector manufacturer in India. The anticipated delivery to domestic research bodies and upcoming aerospace expansions could influence revenue diversification and operational capacity in the regional industrial landscape.