On Tuesday, Phillip Securities initiated coverage on Hindustan Aeronautics Ltd (NS:HIAE) (HNAL:IN) with a Buy rating and a price target of INR5,500. The firm highlighted the company’s transition from licensed production to the development of an indigenously designed and developed product portfolio.
Hindustan Aeronautics Ltd, with a legacy of over eighty years, has produced a wide range of aircraft, such as the Su-30 MKI, MiG-21, and MiG-27, through licensed programs. The company has also made significant strides in manufacturing helicopters, trainer aircraft, and aero-structures for major industry players including ISRO, Airbus, and Boeing (NYSE:BA).
The company’s importance in the defence sector is further underlined by its supply and service of approximately 80% of the Indian Defence Forces’ fleet. Hindustan Aeronautics Ltd’s robust manufacturing history includes more than 4,100 aircraft and 5,000 engines, as well as the overhaul of over 11,000 aircraft and 33,000 engines, solidifying its strong position in the industry.
Phillip Securities’ positive outlook on Hindustan Aeronautics is based on the company’s extensive experience and evolving capabilities in the aerospace and defence sectors. The price target of INR5,500 reflects the firm’s confidence in the company’s growth prospects and its pivotal role in the defence industry.
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