Buy Hindustan Aeronautics, target price Rs 2850: ICICI Securities

ICICI Securities has buy call on Hindustan Aeronautics with a target price of Rs 2850. The current market price of Hindustan Aeronautics is Rs 2387.7.

Hindustan Aeronautics, incorporated in the year 1963, is a Large Cap company (having a market cap of Rs 79218.07 Crore) operating in Defence sector.

Hindustan Aeronautics key Products/Revenue Segments include Sale of services, Engineering Goods, Spares And Others, Development Projects, Miscellaneous and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 5403.86 Crore, up 41.68 % from last quarter Total Income of Rs 3814.10 Crore and down -5.00 % from last year same quarter Total Income of Rs 5688.54 Crore. Company has reported net profit after tax of Rs 1218.94 Crore in latest quarter.

The company’s top management includes Mr.R Madhavan, Mr.C B Ananthakrishnan, Dr.Divya Gupta, Mr.Deepak Abasaheb Shinde, Mr.Alok Verma, Mr.E P Jayadeva, Mr.Arup Chatterjee, Mr.Chandraker Bharti, Dr.(Ms.)Tessy Thomas. Company has Maharaj N R Suresh & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 33 Crore shares outstanding.

Investment Rationale
While contribution from manufacturing is likely to be lower until FY25, factoring in slower order-book accretion, the brokerage revises its revenue growth estimates lower from FY26 to 6% on average (earlier 8%).

Promoter/FII Holdings
Promoters held 75.15 per cent stake in the company as of 31-Dec-2022, while FIIs owned 7.14 per cent, DIIs 12.72 per cent.