ICICI Direct has given Buy recommendation for Hindustan Aeronautics with a target price of Rs. 2860 in its research report issued on Aug 30, 2022
ICICI Direct’s research report on Hindustan Aeronautics
Hindustan Aeronautics (HAL), the largest defence PSU in India, is engaged in design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures • The company has delivered revenue, EBITDA and PAT CAGR of 7.4%, 12% and 26.5%, respectively, in FY18-22. In FY22, repair & overhaul contributed ~64% to total revenues while manufacturing contributed~30%.
We continue to remain positive and retain our BUY rating on the stock. We value HAL at Rs 2,860 i.e. 20x PE on FY24E EPS.