The largest defence PSU stock, Hindustan Aeronautics (HAL) touched a new lifetime high on Friday after its upbeat Q4 earnings due to robust margins. However, right after HAL touched a new all-time high, investors cashed in their gains, taking the stock down accordingly. There is a buy-on-dips opportunity on HAL shares. Global brokerages continue to remain optimistic about HAL.
HAL Share Price:
At the time of writing, HAL's share price traded at Rs 4505.50 apiece, down by 2.13% on BSE with a market cap of Rs 3,01,316.58 crore. In the early trade, the stock extended its rally from the previous session, to shoot up to a new historic high of Rs 4,664 apiece.
Despite the latest drop, HAL continues to be a multi-bagger. YTD, HAL stock is up by 59%, while in a year, the stock rallied by 187% on BSE as of now. HAL shares have even crossed its pre-stock-split of 1:2 ratio that took place in 2023.
HAL Earnings:
On the consolidated basis, HAL reported revenue from operations of Rs 14,768.75 crore in Q4FY24, 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.
HAL announced that it recorded the highest-ever revenue from operations of over Rs. 29,810 crores (provisional and unaudited) for FY24, registering a double-digit growth of around 11% as against 9% in the previous financial year. The corresponding figure for the previous year was Rs. 26,928 crores. HAL received fresh manufacturing contracts of over Rs 19,000 crores and ROH contracts of over Rs 16,000 crores during FY 2023-24.
BUY OR SELL HAL SHARES:
As per Trendlyne data, the consensus recommendation from 13 analysts for Hindustan Aeronautics Ltd. is BUY. Of the total consensus, 7 analysts have suggested 'STRONG BUY' and 4 analysts have given 'BUY' on HAL stock.
Brokerage Nomura has maintained BUY on HAL with a positive outlook. The brokerage set a target of Rs 4,750 per share on HAL.
On the other hand, while maintaining overweight, Morgan Stanley trimmed its target price on HAL to Rs 3,636. According to Stanley, HAL's earnings beat was driven by a strong margin, with Q4 adjusted EBITDA margin at 32.8% expanding by 676 bps on-year. Also, Stanley highlighted that HAL's order backlog was to the tune of Rs 94,000 crore.
Ahead of Q4, brokerage UBS forecasted a threefold surge in HAL's order book and estimated 25% revenue growth in the manufacturing top-line (50% of revenue) in FY23-27E. UBS has raised its target price to Rs 5,200 on HAL for 12 months.
This quarter, however, HAL did not announce any dividends. 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.
Meanwhile, HAL shares turned ex-split on September 28, 2023, for a 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.
Disclaimer: 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.
Click it and Unblock the Notifications
Sign in with Google