Hindustan Aeronautics Ltd. is one of the largest defence PSUs engaged in the
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 a strong order backlog of Rs. 52,000 cr. as of July 2020 which is expected to go substantially over the next few years as the company is likely to get many new orders in the coming years including orders for 83 LCA.
Outlook & Valuation: At The floor price, it is offered at 11.5xFY2020 EPS of `
86.7, which is reasonable considering the growth prospects. Considering the
strong pipelines of orders and given the Government’s thrust on make in Indian
especially for defence sector, we are positive on the future outlook of the company and rate it as SUBSCRIBE.
