HAL – Sentimental, Momentum & Fundamental Long-Term Investment
Hindustan Aeronautics Ltd – Better be late than Never. Expect reasonable double digit return. To take advantage of market volatility and to average out investment price use “Daily SEP (Systematic Equity Plan)” investment approach, buy 1 share per day for next 20 or more days, depending on investment amount. HAL current price is Rs 2,527.
Investment Rationale –
- A leading player in India’s defence and aerospace industry. Healthy cash balance of Rs 16,000 crore. Stock is currently trading around 18 times FY2024 Estimated EPS.
- Shareholding is re-assuring –
- Healthy order book of Rs 84,000 crore, order intake guidance of Rs. 50,000 crore for next 6-12 months and robust order pipeline of more than Rs 1.2 lakh crore
- Government’s focus on ‘Make in India’ initiative and lower dependency on imports bodes well for a seasoned player like HAL. A key role in India’s journey towards becoming self-reliant in defence sector. India eyes production target of $25 billion by 2025 through indigenisation and higher exports under the ‘Make in India’ program
- With government support, proven execution capabilities and technological capabilities, it is well-poised to leverage on the opportunities in the defence sector. Further, HAL is strengthening its focus on exports to diversify its revenue base
- The company has certain long gestation orders and execution of the same is likely to begin from FY2024E. Therefore, we expect healthy and consistent revenue and earnings growth from FY2024 onward
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Equity/Stock/Share investment are subject to market risks. The article/post is NOT an investment advice. The article/post is an opinion. Please do your own research and/OR consult your investment advisor before making your investment. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing your investments or designing a portfolio that suits your investment needs. The article/post or the author cannot be held responsible for any losses.