HAL stock: Elara Securities raises target price, shares rallied over 120% in 6 months
Aeronautics Limited (HAL) from ‘Accumulate’ to ‘Buy’ after the company reported 52 per cent year-on-year (YoY) rise in its net profit to ₹4,308.7 crore for the fourth quarter results (Q4 FY24). The brokerage firm has also raised the target price of the PSU defence stock from ₹4,100 to ₹5,590. “We revise to Buy from Accumulate, with a higher TP of INR 5,590 from INR 4,100 based on 45x (from 35x) March 2025E P/E as we roll forward.
Our revised TP is driven by expectations from a new stream of the exports business, the surge in inflows of INR 1.6tn, rising margin, and sustained double-digit earnings growth," Elara Securities said in a note. Also read: Indian stock market will break records on June 4: PM Modi on Lok Sabha election results It added, “We believe in the rising share of indigenisation. Unexplored export opportunities in the aircraft and helicopter industry warrant a rerating.
We expect an earnings CAGR of 17% during FY24-26E with an ROE of 24% during FY25-26E. Key risks to our call include lower spending in the defence capital budget, less domestic procurement allocation, increased competition from the private sector, and delay in execution." For the financial year 2024, Hindustan Aeronautics reported a revenue of ₹30,380 crore, an increase from the provisional figure of ₹29,810 crore announced on April 1. EBITDA for the quarter increased substantially by 81.8% from the previous year to ₹5,901.1 crore, compared to ₹3,245.8 crore in the same period last year.
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