Hindustan Aeronautics’ share price rallied over 2% to an intra-day high of Rs 4,879 on the National Stock Exchange. The global brokerage firm, Nomura, has a Buy call on the stock, with a target price of Rs 4,700. This implies a downside of Rs 179 per share.
Nomura has a positive stance on the company on the back of its strong order backlog of Rs 1.84 lakh crore. The tendering prospects pipeline of Rs 1.4 lakh crore is also positive, as per them. This, they believe, gives execution growth visibility over the next five years. Additionally, HAL has diversified into commercial aircraft maintenance, partnering with Airbus.“We look forward to the commentary on the sustainability of strong margins at the earnings call,” added Nomura.
HAL: FY25 order pipeline
Supply of 156 Light Combat Helicopters (LCH), Prachand to Indian Army (90 Nos) and Indian Air Force (66 Nos) along with other equipment worth Rs 62,700 crore. Supply of an additional 12 Su-30 MKI aircraft worth Rs 110 crore. Supply of 240 AL31FP engines of Su-30 MKI aircraft worth Rs 24,000 crore. Repair and overhauling contracts worth Rs 17,500 crore.
HAL Q4 results
The company recorded a consolidated net profit of Rs 3,976.66 crore for Q4FY25, a decline of 7.71% year-on-year as against a profit of Rs 4,308.71 crore in the same quarter of the previous financial year. The company’s revenue from operations slipped 7.24% YoY to Rs 13,699.85 crore in Q4 FY25 from Rs 14,768.75 crore in Q4 FY24. HAL’s earnings per share for Q4FY25 stood at Rs 59.46 as against Rs 64.43 YoY.
HAL share price performance
The share price of HAL has risen 8% in the last five trading sessions. The stock has given a return of 15% in the past one month and 19% in the last six months. HAL’s share price has increased the investors’ worth by 16% in the previous one year.