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Last Updated : Apr 17, 2018 11:56 AM IST | Source: Moneycontrol.com

Buy Hindustan Aeronautics, target Rs 1450: Sumit Bilgaiyan

"HAL is a debt free company and it has paid dividends over 4 decades. We have a buy rating with target of Rs 1450," says Sumit Bilgaiyan, Founder of Equity99.

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Todays L/H

Sumit Bilgaiyan

Hindustan Aeronautics is engaged in the design, development, manufacture, repair, overhaul, upgrade and  servicing of a wide range of products including, aircrafts, helicopters, aero-engines, avionics,

accessories and aerospace structures.

It is the largest defence public sector undertaking in terms of

value of production as per MoD FY17 Annual report. As of December 31, 2017, Hindustan Aeronautics’s order book  stood at Rs 68,461 crore, 3.8x FY17 revenue.

Owing to the nature of business and the need for technology

upgradation, Hindustan Aeronautics is exploring the opportunity for alliances to gain access to new technologies along with new product lines offering revenue potential.

Government’s focus on the defence sector along with indigenous manufacturing is expected to augur well for HAL. Over FY15-17, on a

consolidated basis, Hindustan Aeronautics reported revenue and PAT CAGR of 7 percent and 62 percent, respectively.

EBITDA margins expanded from 5.4 percent in FY15 to 18.1 percent in FY17. RoE as of FY17 stood at 22 percent. HAL is a debt free company and it has paid dividends over 4 decades. We have a buy rating with target of Rs 1450.

Disclaimer: The author is Founder, Equity99. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Apr 17, 2018 11:56 am