Azad engineering is mainly 80% exporting turbine blades to Japan, US and Europe in that order. For use in power plants and now aircraft engines too. IPO happened about 2 months ago. They used the money (and internal accruals) to pay off almost all the debt (270 out of 300 Cr), while prospectus only mentioned plan for payment of 138 Cr.
They also make other metal parts, but focus is turbine blades which have a special shape called aerofoil for optimum conversion of fluid dynamics (velocity and pressure) to/from mechanical energy. So from super hot steam to run generator for electricity or super hot kerosene flames to run aircraft turbofan engine. Aircraft engines is a recent entry for them.
Capital goods sector can be highly cyclical, but turbine need regular preventive maintenance and blades are replaced before failure which can cause huge damage. Due to Russian gas and renewable energy issues, coal and nuclear power plants are back in focus.
First started reading in some detail from IPO review by Dilip Davda. Found something here on twitter, haven’t read it though, except some lines at the end about valuation. Rolls-Royce defence aircraft engine order kicked up the stock. Company concall transcript and presentation are good.
https://twitter.com/jeevanpatwa/status/1758868014823575793?t=vOjPhxOrdcq-FjBRQ2wJmg&s=19
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