Shares of Hindustan Aeronautics Limited (HAL) rose over 2 percent on September 7 after the company said it assembled and tested gas turbines that were used in recently commissioned aircraft carrier, IAC-1 Vikrant.
“HAL is proud to be associated with India's first indigenously designed and built aircraft carrier, IAC-1 Vikrant which was commissioned recently as INS Vikrant by the Prime Minister at Kochi,” the company said in an exchange filing. “IAC is powered by four General Electric LM2500 Gas Turbines supplied by HAL.”
According to the company these gas turbines were assembled and tested at HAL's dedicated facility at Bangalore.
“HAL carried out critical activities towards readiness of IAC for basin trials. HAL's team was actively involved in the integration of the power plant to the IAC and was onboard IAC for all sea trials in the absence of foreign OEM representatives contributing substantially to the Make-in-India concept,” Hindustan Aeronautics said.
Following the disclosure, shares of the firm rose to a 52-week high of Rs 2,450.
Erallier this week, the company also said one of its consortium signed a formal contract for Rs 860 crore with NewSpace India Limited for realisation of five PSLV-XL Launch Vehicles.
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Analysts are also upbeat on the stock. ICICI Securities in a note published on August 30 said it sees strong order visibility for HAL and competitive positioning in the industry.
“Management is confident of maintaining 24-25 percent EBITDA margins. Supply chain of Russian spares has been managed effectively and the company is looking at Rs 13000 crore of repair and overhaul (ROH) revenues in FY23,” said the broker. “Management highlighted its internal target of Rs 2500 crore in export revenues by FY25. Current orderbook stands at Rs 85000 crore including a fresh order of Rs 6000 crore in Q1FY23.”
It has a buy rating with target price at Rs 2,655.
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