Hindustan Aeronautics Ltd’s net profit down 8%; shares slip over 1%

HAL share price: Shares of Hindustan Aeronautics Ltd (NSE: HAL) declined over 1 per cent on NSE on May 12 after the state-owned defence company posted an 8.8 per cent fall in its consolidated net profit for the March quarter. At close, the scrip stood at Rs 2,974.50 on the BSE, down 1.45 per cent.

The earnings release showed that the company recorded a net profit of Rs 2,831.19 crore in FY23 Q4 as compared to Rs 3,105.08 crore in the year-ago quarter. The company’s revenue stood at Rs 12,494.67 crore as against Rs 11,558.23 crore a year ago.

The company's margin — a key measure of profitability for a business, grew to 25.98 per cent as against 21.60 per cent registered in the corresponding quarter of the previous fiscal. HAL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 3245.8 crore as against Rs 2496.9 crore in March 2022 quarter. The company’s expenses for the March quarter increased 9 per cent to Rs 10,359.79 crore from Rs 9,485.91 crore a year earlier.

ICICI Direct has given a ‘buy’ rating on shares of HAL for a target price of Rs 3,300 apiece. “We expect HAL to deliver revenue and EBITDA CAGR of 10.3 per cent and 14.8 per cent, respectively, over FY22-25E,” the brokerage said.

"Recent trend in HAL is positive and we could see good buying interest when the stock declined. Until the stock is trading above Rs 2,880 apiece, the broader trend will be positive. An up move till Rs 3,100 is expected,” Ruchi Jain, Research Analyst, 5paisa.

HAL share price history

On a year-to-date (YTD) basis, HAL stock rose over 17 per cent as compared to Nifty50’s rise of 0.64 per cent. On a six-month basis, the stock rose over 19 per cent against Nifty50’s decline of over 0.08 per cent.

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