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HAL is a Gem and to be Held for Long Term

Published 21-02-2019, 10:07 am
HIAE
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Hindustan Aeronautics Ltd (NS:HIAE) is an Indian state-owned aerospace and defense company headquartered in Bangalore, India. It is governed under the management of the Indian Ministry of Defence. One of the largest aerospace companies in Asia. HAL's revenues also come from international deals to manufacture aircraft engines, spare parts, and other aircraft materials.

The government-owned corporation is primarily involved in the operations of the aerospace and is currently involved in the design, fabrication, and assembly of aircraft, jet engines, helicopters, and their spare parts. It has several facilities spread across India including Nasik, Korwa, Kanpur, Koraput, Lucknow, Bangalore, Hyderabad, and Kasaragod.

HAL is involved in the development of new indigenous aircraft such as the HAL Tejas and HAL Dhruv. HAL will also carry out a major upgrade of almost the entire fighter fleet of Indian Air Force including Su-30MKI, Jaguars, Mirage and Hawk jets to make them "more lethal. The company will also deliver 123 Tejas (FOC cleared) Light Combat Aircraft to the IAF in the near future if everything will be smooth. Tejas will be available as Mark I, Mark IA and Mark II and its further next generation in the future.

HAL Aircraft products are HAWK, LCA, SU-30 MKI, IJT and Dornier.
HAL Helicopters products are Dhruv, Cheetah, Chetak, Lancer, Cheetal and Rudra.
HAL Future products are LCH, LUH, FGFA, MTA, HTT-40, IMRH, MMRCA and UAV.
HAL Power Plant products are ADOUR MK 871, GAARETT TPE 331-5, RD 33, AL 31 FP, SHAKTI, ARTOUSTE III B, PTAE-7 and LM 2500.
HAL Avionics products are Inertial Navigation System, Auto Stabilizer, Head-up Display, Laser range System, Flight Data Recorder & Communication equipment, Radio Navigation Equipment, Air Borne Secondary Radar, Missile Inertial Navigation, Radar Computers, and Ground Radars.
HAL Aerospace products are Structures, Tanks and Cryogenic Engines.
HAL Material products are Castings, General Forgings, Precision Forgings, Powder Metallurgy, Rubber Products, Rolled Rings and Composites.

HAL future looks after FOC announcement. HAL face value is 10 and TTM EPS is 66.66. HAL closed at a price of INR 621.35 on 20.02.2019 at PE of 9.3. The price may reach 800 at PE of 12. HAL may reach estimated EPS of 78.66 during FY 19-20 in the medium term and its estimated price may be around INR 944/- and if held for a long term for 6 years then its EPS may be around 151.44 and its estimated price may be around INR 2725/- at PE of 18.

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