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One analyst has a “hold” rating, while the other two have a “sell” recommendation on the stock.
Shares of Hindustan Aeronautics have corrected 18% so far from their record high of ₹5,674, which the stock had hit in July last year.
Among analysts, Antique Stock Broking has the highest price target on HAL at ₹6,145, followed by Jefferies at ₹5,725.
Jefferies believes that a strong order book, with a visible pipeline provides confidence in HAL continuing with double-digit growth for the next three to five years.
The brokerage also expects HAL’s volatile margins to pick up in the second half of financial year 2025 along with a revenue delivery. Jefferies too has a “buy” rating on the stock.
UBS expects HAL to receive orders worth ₹1 lakh crore in financial year 2025, in addition to recurring MRO orders.
Out of the medium-term prospect pipeline of ₹6.6 lakh crore, UBS expects ₹2 lakh crore worth of orders to be awarded over financial year 2025 – 2026, going by the current flow of events.
UBS maintained its “buy” rating on the stock with a price target of ₹5,700.
CLSA too has a “outperform” rating on HAL with a price target of ₹4,731.
Nomura also maintained its “buy” rating on the stock with a price target of ₹5,400 on the stock.
For the June quarter, HAL’s net profit increased by 76% to ₹1,435 crore compared to ₹814 crore during the same quarter last year. The profitability for the quarter was aided by a 80% jump in its other income component to ₹737 crore. Excluding the other income, HAL’s net profit would have been lower on a year-on-year basis.
EBITDA margins for the quarter, expanded by 40 basis points to 22.8% from 22.4% last year. The expansion in margins is contrary to the estimates that were projecting a 40 basis points contraction. Lower employee costs contributed to the boost in margins.
Shares of Hindustan Aeronautics ended Wednesday’s trading session 0.9% lower at ₹4,658.9. The stock is up 65% so far in 2024.
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