Hindustan Aeronautics Limited (HAL) share: Shares of defense PSU stock Hindustan Aeronautics Limited (HAL) are constantly in the news. The company’s shares have given strong returns to its investors in the last six months. During this period it has seen a rise of up to 120%. This stock has risen 204.27% in a year. During special trading last Saturday, it had increased by 5% and reached Rs 4752. According to the brokerage, it may increase further in the coming days. Brokerage firm Elara Securities has recommended buying this stock.
What is the target price?
Elara Securities has upgraded defense PSU stock Hindustan Aeronautics Limited to ‘Buy’ rating from ‘Accumulate’. The brokerage firm has increased the target price of the PSU Defense stock from ₹4,100 to ₹5,590. “As we move forward, we revise the rating from Accumulate to Buy with a higher target price of Rs 4,100 to Rs 5,590 based on 45x (from 35x) March 2025E P/E,” Elara Securities said in a note. Have been. Our revised target price is driven by expectations of a new stream of export business, increased inflows to Rs 1.6 trillion, expanding margins and sustained double-digit earnings growth. It said, “We believe in increasing share of indigenization. Reassessment of unknown export opportunities in the aircraft and helicopter industry is necessary. We expect earnings CAGR of 17% during FY24-26E and ROE of 24% during FY25-26E.
Order book worth Rs 94,000 crore
Let us tell you that the company’s fourth quarter results (Q4 FY24) have been better. HAL’s March quarter profit has increased to ₹4,308.7 crore on an annual basis. Hindustan Aeronautics Limited (HAL) earned its highest-ever revenue from operations at over Rs 29,810 crore for the financial year ending March 31, 2024, an increase of about 11 per cent over the previous financial year. According to a statement issued by HAL, as on March 31, 2024, HAL’s order book is more than Rs 94,000 crore indicating a strong pipeline of future projects. Additionally, larger orders are also expected during the financial year 2024-25.
corporate planning
Let us inform that recently HAL entered into strategic collaboration for technological advancement including an MoU with General Electric, USA for transfer of technology and manufacturing of GE-414 aero-engine in India for LCA MK-2 aircraft. Involved, as well as the formation of a joint venture. HAL also signed a contract with Airbus to set up maintenance, repair and overhaul (MRO) facilities for the A-320 family aircraft in New Delhi. The objective of this collaboration is to strengthen the ‘Make in India’ mission and enhance export potential.
