India's largest defence PSU, Hindustan Aeronautics (HAL) stock price has accelerated to greater heights with the Navratna company touching a new 52-week high of Rs 4,992.85 apiece this week on BSE. In a matter of month, HAL has rallied by more than Rs 1,000, and in six-months, the stock gained by over Rs 2,700 becoming a multi-bagger. Brokerages like Jefferies and Nomura have maintained BUY while raising target prices to as high as Rs 5,725. There is potential for up to 15% upside.
HAL Share Price:
At the time of writing, HAL shares traded at Rs 4972.20 apiece, up by 0.5% with a market cap of Rs 3,32,397.89 crore on BSE. The stock has touched a new all-time high of Rs 4,992.85 apiece in the previous day.
In a month, HAL shares have gained by a whopping Rs 1,011.50 or 26% On BSE. In a six-month span, the stock zoomed by a massive Rs 2,718.75 or 121.48%. Furthermore, YTD, the stock rallied by 76%. Accordingly, HAL is a multi-bagger defence PSU stock.
HAL Share 2024 Target Prices:
After its Q4 results, global brokerages like Jefferies have recommended BUY on HAL while raising their target prices to Rs 5,725, which is the highest target on the stock so far. According to Jefferies, HAL may see double-digit revenue growth for 4-6 years due to its higher margin service income and aircraft deliveries. Also, HAL's export visibility is improving, while its current margin focuses on cost optimisation which is positive for the company.
Further, Nomura has suggested BUY while also raising its target price to Rs 5,100 on HAL.
Both brokerages have kept a positive outlook on the company.
HAL Earnings:
In Q4FY24, HAL reported consolidated revenue from operations of Rs 14,768.75 crore, rising from Rs 12,494.67 crore in Q4FY23, and more than doubling from Rs 6,061.28 crore in Q3FY24. Meanwhile, PAT stood at Rs 4,308.68 crore, robust growth from a profit of Rs 2,831.19 crore in Q4FY23, and Rs 1,261.51 crore in Q3FY24.
FY24 revenue stood at Rs 30,381.08 crore versus Rs 26,927.46 crore in FY23. While PAT also climbed by Rs 7,620.95 crore as against Rs 5,827.73 crore in FY23.
Additionally, HAL exited FY24 with a stock split of 1:2 and a 440% dividend payout.
Earlier, in February this year, HAL turned ex-dividend for its first interim dividend of Rs 22 per share having a face value of Rs 5 each for FY24. Its dividend payout was 440% in percentage terms. This was also its first dividend payout since HAL shares turned ex-split in the ratio of 1:2.
HAL shares turned ex-split on September 28, 2023, for the ratio of 1:2. That meant HAL's share price face value was reduced to Rs 5 per share compared to earlier Rs 10 per share.
Disclaimers: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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