430% return in 2 years: Should you buy this defence PSU stock? Check target price

HAL Share Price Target NSE, BSE; Hindustan Aeronautics Limited News: Shares of defence PSU Stocks Hindustan Aeronautics surged over three per cent as equity benchmark indices opened in green on Tuesday. While Sensex climbed 225.92 points to 73,002.05 in early trade, Nifty was up 78.65 points to 22,182.70 as retail inflation eased to an 11-month low of 4.83 per cent in April. Amid this, shares of started the session at Rs 3,975, up by Rs 51.55 or 1.31 per cent from the previous close of Rs 3923.45 on the BSE. It went on to hit the day's high of Rs 4064,10 - a surge of around 3.5 per cent. Last seen the counter held firmly in green as was trading at Rs 4008.35.

HAL Share Price Target NSE, BSE

Global brokerage firm UBS has maintained a 'buy' call on the HAL and has raised the target to Rs 5,200 from Rs 3,600. This means that the stock still has a potential upside of 32 per cent from the closing price of Monday.

Currently, this aerospace and defence company has a market capitalisation of over Rs 2,68,309 crore.

Here's what the brokerage has to say

- Forecast a threefold increase in HAL's order book

- Expect 25 per cent revenue growth in the manufacturing topline (50% of revenue) in FY23-27E led by a pick up in large military orders due to a depleting fleet, a robust supply chain and ready capacity. 

HAL Share Price History

Shares of HAL have given positive returns of 430 per cent in two years and 169 per cent in one year. So far this year, the counter has gained 41.86 per cent. 

Meanwhile, from the Sensex basket, JSW Steel, Power Grid, NTPC, Mahindra & Mahindra, Reliance Industries and State Bank of India were the major gainers.

Nestle, Asian Paints, Axis Bank and ITC were among the laggards.

Retail inflation eased to an 11-month low of 4.83 per cent in April as prices of some kitchen items declined though overall food basket firmed up marginally, according to government data released on Monday