Multibagger stock: Sachin Tendulkar makes 15x as Azad Engineering shares soar 280% in six months

Shares of Azad Engineering Ltd continued its momentum and hit upper circuit during the trading session on Wednesday. The Sachin Tendulkar-backed company has delivered multibagger returns to the investors since its listing. Even after the listing, the stock has delivered stellar returns to the investors.

Shares of Azad Engineering have surged about 5 per cent, locked in the buyers circuit, to Rs 1981.80 on Wednesday, commanding a total market capitalization of more than 11,700 crore. The scrip had settled at Rs 1,887.45 in the previous trading session on Tuesday, up 5 per cent for the day.

Azad Engineering, incorporated in 1983, is a manufacturer of aerospace components and turbines. The company supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries. Azad Engineering's products are highly engineered, complex, mission-critical, and vital.

Commenting on the company, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said that Azad Engineering, a strong defence play and momentum in defence stocks is constantly pushing the stock higher. The stock has been gaining momentum lately after a long-consolidation in the Rs 1,300-1,500 range. Investors should look at the counter on dips, he advised.

Azad Engineering, which was listed in December 2023 as the company raised 740 crore via its primary stake sale, sold its shares for Rs 524 apiece. The stock made a strong debut at the bourses and was listed at 37 per cent premium of Rs 720 apeice.

From its issue price, the stock has zoomed 280 per cent so far and even from its listing price the stock has rallied over 175 per cent. From its 52-week low at Rs 641.95 hit on January 17, 2024, the stock has more than tripled investors wealth, rising about 208 per cent since then.

A couple of weeks ago, ICICI Securities maintained its buy rating on Azad Engineering with a target price of Rs 1,750 on the stock. "With favourable sectoral tailwinds and a large addressable market, we believe that strong growth is likely to continue for several years," said the brokerage firm in its then report.

Legendary cricketer Sachin Ramesh Tendulkar invested Rs 5 crore in the company in March 2023 as he owned 3,65,176 equity shares in the company at an average cost of Rs 136.92 apiece. His investment in the company has zoomed 14.56 times, with stake in the company valuing at Rs 72.37 crore as of today.

Sachin Tendulkar, being a pre-IPO investor, will be eligible to offload his stake or to book profits in the company, next week as the company will complete six months of allotment period. All pre-IPO investors, barring the promoters, are eligible to offload their stake after six months from the date of allotment. However, Business Today can not ascertain if he will sell this stake or not.