HAL may receive Rs 21,000 crore order for fighter jets? Multibagger PSU stock rises

Already boosted by strong earnings, Hindustan Aeronautics Ltd (HAL) shares rose on Friday amid reports suggesting that the defence and aerospace PSU may receive an order to the tune of Rs 21,000 crore from the Ministry of Defence. The stock of Bengaluru-headquartered Hindustan Aeronautics - which is engaged in the design and manufacture of a wide range of products including aircraft, helicopters and jet engines - ended stronger by Rs 107.9 or 2.3 per cent at Rs 4,769.2 apiece on BSE. During the session, HAL shares - a popular multibagger stock of the year so far - rose as much as 2.9 per cent to Rs 4,794.4 apiece. 

According to reports, HAL is expected to win an order of 230 jet engines for the Su 30MKI fighter jets, with deliveries set to take place over the next few years.

The defence ministry plans to upgrade the existing fleet of Su 30MKI fighter jets with new avionics, radars and electronic warfare systems. 

HAL, which has produced 517 such engines, is reported to be among the frontrunners for the deal, according to reports.

HAL Q1 FY25 Results

This week, HAL staged a strong performance in the first three months of the financial year. Its consolidated net profit increased 76.5 per cent to Rs 1,437.1 crore while revenue grew 11 per cent to Rs 4,347.5  crore for the quarter ended June 30, according to a regulatory filing.

According to Zee Business research, HAL was estimated to register a consolidated net profit of Rs 954.4 crore for the first quarter of the current financial year.

How brokerages view HAL earnings

According to Jefferies, Hindustan Aeronautics's revenue was above but EBITDA below its estimates. 

Maintaining a 'buy' rating with a target price of Rs 5,725 for HAL shares, the brokerage said the PSU's strong order book, with a visible pipeline, provides confidence that it is likely to continue double-digit growth for 3-5 years. 

Nomura retained its 'buy' rating on Hindustan Aeronautics with a target of Rs 5,400 per share after the earnings announcement. 

Multibagger HAL Shares: Past performance 

As of August 16, HAL shares have rewarded investors with a 144 per cent return, sharply outperforming a 26 per cent rally in the headline Nifty50 index.

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