Goldman Sachs on Hindustan Aeronautics
The global brokerage house Goldman Sachs reiterated its ‘BUY’ rating on Hindustan Aeronautics and maintained its price target of Rs 5,870 on the stock. Its Q2 EBITDA missed estimates, revenue and EPS came in line with house expectations. The brokerage said that smoother F-404 engine supply from GE Aerospace is a key catalyst. Despatch of seven F-404 engines removes a major uncertainty. Further, Tejas Mk-1A and higher helicopter deliveries are also seen as growth drivers. Only defence stock in coverage trading below 30x two-year forward P/E.