Hindustan Aeronautics is set for a long haul

With the government’s focus on indigenous defence manufacturing, the company’s prospects look bright

Jitendra Kumar Gupta
March 29, 2023 / 10:22 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights The company enjoys dominant position in the growing defence aerospace Strong order book and a huge pipeline provides robust visibility New manufacturing capacity to help deliver higher growth Valuations supportive now with the recent correction in stock prices There are a few companies that offer longevity of business and certainty of cash flows. The government-owned Hindustan Aeronautics (HAL), which is the monopoly in the defence aerospace industry, is one of them. Its manufacturing capabilities, technical know-how, tie-ups with global players, strong entry barriers,...