Shares of Hindustan Aeronautics Ltd (HAL) fell over 5% in intraday trade on Thursday even though the broader market sentiments have a bullish undertone. The stock is currently trading at Rs 4,212 on BSE near the day's low.
HAL has had a stellar run at the bourses in the last one year, delivering multibagger returns to investors. The stock was up around 111% in this period, while it rose around 49% on a YTD basis.
Recently, the state-run aerospace major bagged a bumper Rs 26,000 crore deal from the defence ministry for procurement of 240 aero engines for Su-30MKI aircraft.
The aero-engines will be manufactured by the Koraput division of HAL and are expected to fulfill the need of the Indian Air Force to sustain the operational capability of the Su-30 fleet.
The HAL would supply 30 aero-engines annually as per the contractual delivery schedule. The supply of all 240 engines would be completed over the period of next eight years, according to the defence ministry.
By the end of the delivery programme, HAL would enhance the indigenisation content up to 63% to achieve an average of over 54%.
The order pipeline looks healthy with orders worth Rs 48,000 crore for ALH (25), LUH (12), Su-30 (12), and RD-33 engines (80) being in advanced stages of finalization and are expected to materialize in the near term.
Subsequently, an order worth Rs 18,000 crore is expected to materialize on the RoH front, if reports are to be believed.
Following the deal, Antique Broking upped the target price of the company Rs 6,145, given the multi-year double-digit earnings growth potential and robust return ratio profile
Commenting on the FY25 operational performance, Antique said there might be a moderation on account of supply chain challenges as a delay on the supply front has led to a delay in execution of a large order worth Rs 48,000 crore.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
HAL has had a stellar run at the bourses in the last one year, delivering multibagger returns to investors. The stock was up around 111% in this period, while it rose around 49% on a YTD basis.
Recently, the state-run aerospace major bagged a bumper Rs 26,000 crore deal from the defence ministry for procurement of 240 aero engines for Su-30MKI aircraft.
The aero-engines will be manufactured by the Koraput division of HAL and are expected to fulfill the need of the Indian Air Force to sustain the operational capability of the Su-30 fleet.
The HAL would supply 30 aero-engines annually as per the contractual delivery schedule. The supply of all 240 engines would be completed over the period of next eight years, according to the defence ministry.
By the end of the delivery programme, HAL would enhance the indigenisation content up to 63% to achieve an average of over 54%.
The order pipeline looks healthy with orders worth Rs 48,000 crore for ALH (25), LUH (12), Su-30 (12), and RD-33 engines (80) being in advanced stages of finalization and are expected to materialize in the near term.
Subsequently, an order worth Rs 18,000 crore is expected to materialize on the RoH front, if reports are to be believed.
Following the deal, Antique Broking upped the target price of the company Rs 6,145, given the multi-year double-digit earnings growth potential and robust return ratio profile
Commenting on the FY25 operational performance, Antique said there might be a moderation on account of supply chain challenges as a delay on the supply front has led to a delay in execution of a large order worth Rs 48,000 crore.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
