Hindustan Aeronautics - Order Book Driven Growth Visibility To Drive Rerating: ICICI Securities
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ICICI Securities Report
Hindustan Aeronautics Ltd.’s order inflows have meaningfully improved over the past year.
Single biggest indigenous defence order worth Rs 480 billion was awarded for delivery of 83 Mk 1A light combat aircraft.
Hindustan Aeronautics’ capability as a defence prime and a original equipment manufacturer for fighter aircraft/helicopters/trainers was always undisputed.
Visibility on order inflow and a corresponding visibility on growth were the stunting factors.
The company’s revenue was ~41% of the Indian capital budget for air platforms.
Near stagnation of defence capital spending was adding to the uncertainty; exigencies and thrust towards indigenisation have allowed the same to change.
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