CLSA has initiated a buy on Hindustan Aeronautics Ltd (HAL) with a target price of Rs 1,450; 30 percent upside potential from current levels.
The firm sees a 10-year long opportunity for this company as the company is set to soar on a USD 93 billion manufacturing opportunity of India’s new air fleet over the next 10 years.
CLSA also expects 14 percent EPS CAGR for HAL in the next five years between FY21 and FY26 and despite this long runway, the stock is trading at 10 times FY23 EPS versus the global peers at 15 times and Indian defence companies at over 14 times.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
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(Edited by : Dipika Ghosh)
First Published: Jul 22, 2021 9:52 AM IST