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'Buy' Hindustan Aeronautics, Maintains ICICI Securities On Strong Orderbook, Relatively Inexpensive Valuation
HAL's stock is currently trading at 22x FY27E (implied P/E), ICICI Securities maintains Buy with DCF-based unchanged target price of Rs 5,000.
02 Apr 2025, 10:41 AM IST 
HAL's order inflow for FY25 was Rs 1,195 billion – this includes manufacturing order of Rs 1,020 billion and repair and overhaul order inflow of Rs 175 billion.
(File image of Tejas fighter jet, developed by Hindustan Aeronautics Ltd. (Source: Company website)
HAL's current orderbook of Rs 1,840 billion (~6x trailing twelve months) provides sufficient revenue visibility in the near term. Going forward, the orderbook pipeline remains strong with order inflow expectation of more than Rs 1,400 billion (including repair and overhaul orders) for FY26E. Besides, the progress on development of Tejas Mk-II and AMCA is ongoing. The brokerage also believes the execution of Tejas Mk-1A would be benef...
