Shares of Azad Engineering Limited slumped 5 percent to Rs 1,158 in morning trade on March 14 after the Securities and Exchange Board of India (Sebi) flagged concerns about a potential buildup of speculative activity in small and mid-cap stocks.
The drop comes despite the company entering into a strategic partnership with the steam power business of GE Vernova for the supply of high-complex rotating airfoils for the nuclear, industrial and thermal power industries.
"The transformative collaboration brings an agreement that is valued around $35 million for seven years," the company said in a regulatory filing on March 13.
Follow our live blog for all the market action
At 9:20am, the stock was trading at Rs 1,189, down 2.2 percent from the previous close on the NSE. Since its listing on the bourses on December 28 2023, the share price has gained over 76 percent.
The company has signed two agreements in two days. On March 12, Azad Engineering said that oil and gas company Baker Hughes signed another five-year strategic supply agreement (SSA), a long-term contract with the company.
The order is for the supply of medium-to-high complex precision machined components for oilfield services. "This contract would translate to substantial business value for the next five years and is extendable up to three additional one-year terms," the company said in the exchange filing.
Last week, a subsidiary of Baker Hughes signed a long-term Strategic Supply Agreement with Azad Engineering involving the supply of high-complex and critical components. The company has, however, not disclosed the order value of both of these orders.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
