By Malvika Gurung
Investing.com —
Shares of the state-owned aerospace and defence company Hindustan Aeronautics (NS:) extended their rally on Monday and hit a lifetime high of Rs 2,638.35 apiece on the NSE, thanks to a strong outlook amid healthy order visibility.
Brokerage Antique Stock Broking has initiated a Buy rating on the defence stock given its large order book amid a favourable environment, as the country aims at modernising its armed forces, cited a Bloomberg report.
The aerospace company has a strong order book of nearly Rs 84,800 crore, as of June 2022 and the (order) inflows have surged 39% to Rs 6,270 crore during the first quarter of the ongoing fiscal year.
The total estimated cost of new orders amounts to Rs 45,000 crore and the PSU company has an MRO order pipeline of almost Rs 1.2 lakh crore in the upcoming 3-4 years, as per an ET report.
Five analysts are tracking the large-cap company and all of them are bullish on the stock. Antique Stock Broking has a target price of Rs 3,140/share, an upside of 20.12% compared to Monday’s closing price.
The PSU scrip has soared 105% so far in the year and is up 83% in the past 6 months.
“Defense sector is buzzing currently on the back of a strong order book, orders from GOI under the Ministry of Defense, technological advancements and requirements according to the geopolitical environment and export orders. This gives us visibility of upto 4-5 years as the country needs to match the international standards,” states Ashwin Patil of LKP Securities.
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