Buy Hindustan Aeronautics, target price Rs 3240: ICICI Direct

ICICI Direct has buy call on Hindustan Aeronautics with a target price of Rs 3240. The current market price of Hindustan Aeronautics is Rs 2889.55. ICICI Direct recommended to keep stop loss at Rs 2580.

Hindustan Aeronautics, incorporated in the year 1963, is a Large Cap company (having a market cap of Rs 96067.86 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 6162.72 Crore, up 14.04 % from last quarter Total Income of Rs 5403.86 Crore and up 1.22 % from last year same quarter Total Income of Rs 6088.66 Crore. Company has reported net profit after tax of Rs 1153.92 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. as its auditors. As on 31-12-2022, the company has a total of 33 Crore shares outstanding.

Investment Rationale
The stock has formed a higher base above 100day’s EMA and subsequently witnessed a faster pace of retracement wherein it retraced the preceding 10week’s decline in just four weeks, highlighting the robust price structure.

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.