This PSU defence major zooms up to 3% even as margins slipped in Q1; Jefferies sees defence PSU stock to climb 23%

Hindustan Aeronautics shares in Friday's trade (August 16) zoomed up to 3 per cent at day's high to Rs 4,787.7 as global brokerages largely remain bullish on the defence PSU major.After the results, company's shares ended on a negative note on Wednesday at Rs 4,661.35, down 0.8 per cent.

The company during the June quarter reported consolidated revenue from operations at Rs 4,347.5 crore. 

How global brokerages view the stock of HAL after its Q1 results?

Jefferies has maintained the stock's target at Rs 5,725 with a 'buy' rating. The brokerage stated that the company's Q1 revenue remained above estimates but EBITDA was lower as margins contracted. Strong order book with visible pipeline provides confidence in double-digit growth continuing for 3-5 years, it added. The brokerage further noted that volatile margins should pick up in H2 with revenue delivery.

Meanwhile, Nomura also continued with its buy rating on the stock with a target of Rs 5,400, implying nearly 16 per cent gains from the last close.