HAL shares have risen 68 percent since the start of the yearlive bse livense live Volume Todays L/H More ×Hindustan Aeronautics Limited shares surged over 4 percent to hit a record high of Rs 4,739 after Jefferies reaffirmed its bullishness on the stock and hiked the target price on positive growth prospects.
The international brokerage maintains a 'buy' call on the stock and raised the target price to Rs 5,725, implying an upside potential of over 26 percent from the current market levels.
The previous price target was Rs 3,900.
Story continues below Advertisement Remove AdFollow our live blog for all the market updatesJefferies says the company is 'flying high' and there is clear visibility.
It also added that higher margin service income and aircraft deliveries should see double-digit revenue growth for 4-6 years.
HAL shares have risen 68 percent since the start of the year
live bse live
nse live Volume Todays L/H More ×
Hindustan Aeronautics Limited shares surged over 4 percent to hit a record high of Rs 4,739 after Jefferies reaffirmed its bullishness on the stock and hiked the target price on positive growth prospects.
The international brokerage maintains a 'buy' call on the stock and raised the target price to Rs 5,725, implying an upside potential of over 26 percent from the current market levels. The previous price target was Rs 3,900.
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Follow our live blog for all the market updates
Jefferies says the company is 'flying high' and there is clear visibility. It also added that higher margin service income and aircraft deliveries should see double-digit revenue growth for 4-6 years. Furthermore, the company is expected to maintain its current margin as it focuses on cost optimisation. Export visibility is also improving, Jefferies said.
The development comes after the company reported a stellar fiscal fourth quarter.
On May 16, the state-owned defence Public Sector Undertaking (PSU) announced a net profit of Rs 4,309 crore, marking an increase of 52 percent from the previous year's Rs 2,831 crore. Furthermore, net sales for the quarter soared to Rs 14,769 crore, reflecting an 18 percent growth compared to Rs 12,495 crore in the corresponding quarter of the previous year.
UBS also has a buy call on the counter and believes that it is justified by HAL's better order book scale-up, lower competition, and greater optionality in exports.
Additionally, analysts at UBS anticipate a 'goldilocks scenario' for HAL throughout the coming decade. They highlight several factors contributing to this optimistic outlook, including the government's prioritisation of defence manufacturing timely expansion of capacities to facilitate increased outsourcing to the private sector, and growing trust in large domestically designed and manufactured platforms.
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