Hindustan Aeronautics Limited IPO – Details, Price Band, Analysis
Hindustan Aeronautics Limited (HAL) – a fully owned Government of India undertaking under the administrative control of Ministry of Defence – is planning to raise INR 4,229.33 Cr (all OFS) via initial public offer (IPO)
Hindustan Aeronautics Limited – Company Profile
- Incorporated in the year 1963, Hindustan Aeronautics Limited (HAL) is Bengaluru based Defence Public Sector Undertakings (DPSU) Company engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including aircraft, aero-engines, avionics, helicopters, accessories and aerospace structures.
- The Company’s operations are organised into 5 different complexes, namely (1) the Bangalore Complex, (2) MiG Complex, (3) Helicopter Complex, (4) Accessories Complex, and (5) Design Complex, which together include 20 production divisions and 11 R&D Centres located across India.
- HAL is currently meeting the requirements of structures for aerospace launch vehicles and satellites of ISRO through its dedicated Aerospace Division. Infrastructure has also been set up to undertake completed assembly of the strap-on L-40 stage booster. Structures for GSLVMk.III have been productionised.
- HAL has also contributed to Mars mission by supplying riveted structural assemblies and welded propellant tankages for the Polar Satellite Launch Vehicle (PSLV-C25).
HAL – Client List
- DEFENCE & SPACE – Indian Air Force, Indian Army, Indian Navy, Indian Coast Guard, Indian Space Research Organisation, Defence Research & Development Organisation, Ordnance Factory Board
- CIVIL – Border Security Force, Oil & Natural Gas Cooperation of India, Govt. of Karnataka, Govt. of Jharkhand, Govt. of Maharashtra, Geological Survey of India, Bharat Heavy Electricals Ltd.
- EXPORTS – Airbus Industries, Boeing, Coast Guard, Ecuadorian Air Force, ELTA, GE Aviation, Hamilton Sundstrand, Honeywell International, Israel Aircraft Industries, Mauritius Police Force, Moog Inc, Namibian Air Force, Nepal Army, RAC MIG, Rolls Royce Plc, Royal Air Force, Royal Malaysian Air Force, Royal Thai Air Force, Ruag, Rosoboronexport, Suriname Air Force, Turbomeca, Vietnam Air Force
Company Promoters
Company’s Promoter is the President of India.
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenues
HAL shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 3 years and jumped from INR 17362 Cr in FY 2015 to INR 19596.90 Cr for the period ended FY 2017. (INR 5665.90 Cr till Sept 2017)
Profits
Though the company has shown steady growth in revenue, the company has also registered growth in profits in these 3 years. Starting from INR 994.10 Cr of profits in FY2015, the company’s earnings improved to INR 2624.70 Cr for the period ended FY 2017. (INR 391 Cr till Sept 2017)
CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends SUBSCRIBE ratings on Hindustan Aeronautics Limited IPO (keeping a long-term view in mind)
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