Brokerage recommends buying this defence stock for just 2-3 days; check target price

Indian equities indices started at a fresh record high on Thursday, July 4, boosted by strong hints from global counterparts. In the early trading hours, the Sensex and Nifty reached fresh highs of 80,374 and 24,400, respectively.

At 2.24 PM, Sensex was 161.6 or 0.20 per cent at 80,150, and Nifty 101 points or 0.22 per cent at 24,339.

Talking about global markets, Japan's Nikkei 225 benchmark closed Thursday at a fresh record high of 40,913.65, pushing past its most recent record close set in March.

Meanwhile, brokerage Motilal Oswal Financial Services Ltd (MOFSL) suggests investors to buy Defence PSU Stock Hindustan Aeronautics Limited (HAL) from a short-term perspective.

Defence stock to buy

The brokerage has suggested HAL as its technical pick for just 2-3 days.

HAL share price target

MOFSL has given HAL's share price target of Rs 5,750 each. On Wednesday, July 3, the shares of HAL closed at Rs 5,459. This implies an upside of around 6 per cent from its last closing price.

Today, HAL shares closed at Rs 5518.1 apiece, up 1.1 per cent on BSE. From its current market price, HAL can provide returns of up to 5 per cent

A look at HAL's Q4FY24 earnings

The company reported a 52 per cent increase in consolidated profit after tax (PAT) at Rs 4308.71 crore for the March quarter, according to a BSE disclosure. In the same quarter last year, HAL's PAT was recorded at Rs 2831.19 crore. The defence company HAL posted a 18 per cent growth on a year-on-year (YoY) basis in its consolidated revenue of Rs 14,768.75 crore which was Rs 12494.67 crore in Q4FY24. 

HAL stock performance

HAL shares have rewarded investors with a return of over 197 per cent in the past 12 months. The company's shares have jumped 95 per cent on a year-to-date (YTD) basis and provided almost 2x returns in the last six months.