ICICI Securities has recently released its Defence Sector Equity Research report, where it has assigned buy call on 3 multibagger Defence sector stocks. These stocks are Hindustan Aeronautics Limited, Bharat Electronics Limited, and Astra Microwave Products Limited. According to the brokerage, earnings calls go beyond numbers and provide an insight into the management's thought process and outlook. In this compendium, we have put together the key takeaways for Q2FY23 performance for companies under our coverage.
Key highlights: 1) Orderbook is expected to grow for all companies; 2) margins are expected to expand on sourcing efficiencies; 3) focus on enhancing exports; and 4) peak earnings is expected for naval shipyard companies by FY25.
1. Bharat Electronics Limited
Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and Air Force.
ICICI Securities suggests buy the stock with a target price of Rs 125 per share. According to the target price, the stock is likely to give a return of up to 17%. The stock last traded at Rs 107 apiece on NSE, gaining 0.09%.
It recorded its 52 week high at Rs 114.65 on 15 September 2022 and the 52 week low at Rs 62.33 recorded on 24 February 2022, respectively.
It has given a multibagger return in 3 years, around 193.28%. In 1 year it gave 54.07% and in 5 years, it gave 73.84% positive returns, respectively.
2. Hindustan Aeronautics Limited
Hindustan Aeronautics Ltd (HAL) is an aerospace and defence sector Navratna company. The company develops, manufactures, designs, and supplies aircraft, avionics, helicopters, and communications equipment for military and civil markets. It is a large-cap defence sector company having a market capitalisation of Rs 91,217.57 crore.
ICICI Securities has assigned a buy rating to the stock with a target price of Rs 3,170 apiece. If you buy the stock today, considering the given target price, it can fetch a potential return of up to 17%.
The current market price (CMP) of the HAL stock is Rs 2,727.90 apiece, 0.34% up as compared to its previous close. The stock today, 24 November 2022, touched its new 52 week high at Rs 2,762.35, while the 52 week low of the stock was recorded on 20 December 2021 at Rs 1,181.20.
The stock has given multibagger returns with a maximum return of 243.65% in 3 years. It has given 98.26% in the 1 year. In 1 and 3 months it gave 12.96% and 23.03% positive returns, respectively.
3. Astra Microwave Products Limited
Astra Microwave Products is a defence sector small-cap company engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems used in defence, space, meteorology and telecommunication.
ICICI Securities assigned a buy rating on the stock with a target price of Rs 380 per share. The brokerage with the given target price claims a potential upside of up to 21%.
The current market price (CMP) of the Astra stock is Rs 314.50 per share, down 2.10% from its previous close. The 52-week high level of the stock is Rs 374.50 recorded on 26 August 2022 and the 52-week low level is Rs 175 recorded on 24 February 2022, respectively.
The stock has delivered multibagger returns of 246.18% in 3 years, and 185.13% in 5 years, respectively. In a year, the stock has given a 22.37% positive return. However, in 3 months, it gave 4.58% negative returns.
The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.