Shares of Hindustan Aeronautics Ltd (HAL) have delivered multibagger returns in two years. The defence stock climbed 233% during the period. HAL shares rose 599% in three years. However, the stock has turned weak in six months, falling 21% during the period.
The multibagger stock climbed 1.57% to Rs 4235.80 on Thursday on BSE. HAL shares have fallen 25.36% from 52 week high of Rs 5675 touched on July 9, 2024.
Total 0.38 lakh shares of the firm changed hands amounting to a turnover of Rs 15.94 crore. Market cap of the firm rose to Rs 2.83 lakh crore on BSE.
Jefferies has reaffirmed its 'Buy' rating with a price target of Rs 5,500 per share, representing a potential upside of 32% from Wednesday's closing price.
"HAL has 5-year growth visibility of 20% EPS CAGR, driven by indigenisation, which should keep multiples elevated. On defence, the earnings drivers are linked to domestic manufacturing focus, import substitution, and exports vs. material rise in defence spending. The $100-120 billion domestic market is the defence opportunity over 5-6 years, with current policy continuing vs. any material change, implying a visible 13% industry CAGR in FY24-30E," said Jefferies.
PhillipCapital has a buy call with a price target of Rs 5,500 for the HAL stock.
The brokerage said a near-term catalyst is the induction of HAL’s LCA Mk1A (Light Combat Aircraft Mark 1A) into the Indian Air Force (IAF). It assigned a PE of 40 times on December 2026 EPS, and has initiated coverage with a 'Buy' rating and a target of Rs 5,500.
Anand Rathi has a buy call on Hindustan Aeronautics Ltd (HAL). with a target price of Rs 4950.
JM Financial has a price target of Rs 5,150 with a buy call. Stop loss can be fixed at Rs 4,390.
"Post the stellar performance in the 1st half of the current calendar year, HAL in the last 5 months had declined from a high of Rs 5,675 levels to a low of Rs 3,920 levels. Technically, the stock has been moving in a downward sloping channel pattern. It has witnessed an upside break-out of the pattern today, suggesting further strength to prevail. The stock has already negated the bearish formation of lower top lower bottom in the previous month The shorter term EMAs has started converging towards the longer term EMAs. The stock is now trading above all its key long term and short term EMAs. Interestingly, the average trading volumes and delivery volumes on upsides has been on the higher side in comparison to volumes on downsides, suggesting cash-based buying at these levels," said the brokerage.
Hindustan Aeronautics Limited is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The company's products include HAWK, light combat aircraft (LCA), SU-30 MKI, intermediate jet trainer (IJT), DORNIER and HTT-40.