Hindustan Aeronautics Ticking All The Right Boxes, Says Motilal Oswal Maintaining ‘Buy’ — Check Target Price
Hindustan Aeronautics Ltd. has been on a roll, with the company receiving a follow-on order of 97 light combat aircraft Mk1A worth Rs 624 billion from the Ministry of Defence. This significant order is in addition to the previous order of 83 Tejas LCA Mk1A received in January 2021.
Overcoming Supply Chain Issues
GE has now overcome the supply chain issues it was facing previously and resumed normal deliveries of the F404 engines, and we expect aircraft deliveries to accelerate in the coming quarters. The resolution of supply chain issues is a significant positive for the company, as it will enable Hindustan Aeronautics to meet the growing demand for its aircraft.
Motilal Oswal Maintains ‘Buy’ Rating
Motilal Oswal has maintained its ‘Buy’ rating on Hindustan Aeronautics, citing the company’s strong order book and the potential for growth in the Indian defence sector. The research firm has set a target price for the stock, which is attractive for investors looking to benefit from the company’s future growth prospects.
Indian Defence Sector on the Rise
The Indian defence sector has been gaining momentum in recent years, driven by the government’s focus on indigenization and self-reliance. The sector is expected to continue growing, driven by the increasing demand for defence equipment and the government’s plans to modernize the armed forces.
Investment Opportunities
For investors looking to benefit from the growth of the Indian defence sector, Hindustan Aeronautics is an attractive option. The company’s strong order book, growing revenue, and increasing profitability make it a compelling investment opportunity. Additionally, the company’s dividend yield is attractive, making it a good option for income-seeking investors.
Conclusion
In conclusion, Hindustan Aeronautics is ticking all the right boxes, with a strong order book, growing revenue, and increasing profitability. The company’s ability to overcome supply chain issues and the maintained ‘Buy’ rating by Motilal Oswal make it an attractive investment opportunity for investors. With the Indian defence sector expected to continue growing, Hindustan Aeronautics is well-positioned to benefit from this trend.
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