Goldman Sachs gives this aerospace parts manufacturer its highest share price target

Global investment banking firm Goldman Sachs on Tuesday, October 13, said it is positive on Azad Engineering‘s latest order win from Bharat Heavy Electricals (BHEL).

It maintained its “buy” rating on Azad Engineering with a target price of ₹3,315 per share. This indicates an upside of 11.7% from its previous closing price.

This is also the highest price target on the street for the manufacturer of fabricated metal products and machined components for turbines and aerospace parts.

Azad Engineering on Monday said it secured a two-year long-term rate contract worth ₹52.7 crore from BHEL for the supply of critical stationary and rotating airfoils (stator vanes and rotor blades) for heavy-duty gas turbines. The execution is scheduled through October 2028.

Azad Engineering has been approved as a long-term source by BHEL, following a similar rate contract executed in May 2026.

Goldman Sachs sees the development as supportive of its thesis around the firm’s increasing participation in the domestic gas turbine supply chain, particularly given the:

• Growing opportunities for indigenization of critical turbine components.
• Expansion of its customer base beyond global OEMs into domestic power equipment manufacturers.
• Continued order wins supporting the ramp-up of its energy business, it said.

Azad Engineering on Monday also said it had executed a similar rate contract in May 2026. It said that when it received the previous contract, it assessed the order as not material from a business perspective, which is why it did not disclose it. Considering the combined value and duration of the arrangement, it said it is now disclosing the contract as material.

Of the nine analysts who have coverage on the Azad Engineering, eight have a “buy” rating and one has a “sell” rating. The consensus estimates of price targets imply a downside potential of 2.5% from current levels for Azad Engineering.

Shares of Azad Engineering are trading 0.3% higher, having recovered from the lows of the day at ₹2,978.6. The stock has risen 83% so far this year.

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