Hindustan Aeronautics Stock Hits 52-Week High Today After This Report Made Public

The stock of Hindustan Aeronautics gained 0.90% in morning trade today (11:35 am). The stock opened at Rs 2409 apiece and touched the day's high of Rs 2450 so far and day's low of Rs 2400 apiece in morning trade.

The 52-week high of the stock is Rs 2450 apiece and 52-week low is Rs 1181 apiece, respectively. The current maket price of the stock is Rs 2413 apiece

Why the stock hit 52-week high today?
The stock of the company touched 52-week high today soon after it divulged that it assembled and tested gas turbines that were used in the just commissioned aircraft carrier, IAC-1 Vikrant.

The company in its BSE filing stated, "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."

According to the company's press release, "IAC is powered by four General Electric LM2500 Gas Turbines supplied by HAL. These Gas Turbines were assembled and tested at HAL's dedicated facility at Bangalore. With the power of 88 MW and top speed of 28 Knots, INS Vikrant is truly enhancing the maritime capability of India."

It is worth noting that 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.

Earlier, leading brokerage house ICICI Direct has given buy rating to the stock of Hindustan Aeronautics for a target price of Rs 2860 apiece with a potential gain of 25%. 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 approximately 64% to total revenues while manufacturing contributed approximately 30%.

Hindustan Aeronautics Ltd Return

The stock has given a return of 256% in 3 years, 104% in 5 years, 71% in 1 year, and 22% in 3 months.

Valuation

According to ICICI Direct, "We expect HAL to deliver revenue and EBITDA CAGR of 7.7% and 14.1%, respectively, in FY22-24E. PAT likely to grow at ~10% CAGR (FY21-24E). Increase in profitability with strong asset turnover will result in healthy return ratios over FY23-24E. We continue to remain positive and retain our BUY rating on the stock."

About the company

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.