This PSU stock clocks over 21% gains in 5 days; can it rally more?
Shares of Hindustan Aeronautics continued their winning streak for the fifth consecutive day and marked a fresh record high on the stock exchanges.
HAL share price, Hindustan Aeronautics Limited share price: Shares of HAL in Saturday’s session have marked a fresh all-time high of Rs 4752 apiece on the BSE, after hitting back-to-back fresh 52-week highs since May 14. The stock's record high hit on the NSE is Rs 4755 per share. Given the continued run-up, the stock has climbed a sharp over 21 per cent in five sessions.
Today's surge in the stock is fuelled after global brokerage Jefferies has continued with its 'buy' rating on the counter and has raised the target price to Rs 5,725 from Rs 3,900 earlier. The new set target implies an upside potential of over 26 per cent.
In the previous trade, the stock retreated lower and settled at Rs 4531.4, down 1.6 per cent.
Following the company's Q4 earnings released on Thursday, Morgan Stanely maintained an ‘overweight’ view on the counter and gave a target of Rs 3,636, a significant downside from current levels. The brokerage noted that the company’s earnings beat is led by a strong margin, with Q4 adjusted EBITDA margin at 32.8 per cent, up 676 bps on-year. Furthermore, the company’s order backlog reported at Rs 94,000 crore, translates to 3.3x TTM sales.
Meanwhile, another foreign brokerage Nomura continues with its ‘buy’ on HAL and a target of Rs 4,750, implying a potential run-up of just over 3 per cent.
HAL Q4FY24 results
For the reporting quarter, the company logged a 52 per cent increase in consolidated profit after tax (PAT) at Rs 4308.71 crore. In the same quarter last year, HAL's PAT was recorded at Rs 2831.19 crore. The company posted an 18 per cent growth on a year-on-year (YoY) basis in its consolidated revenue to Rs 14,768.7 crore. The same was at Rs 12494.67 crore in Q4FY23. According to Zee Business research, the defense company was estimated to register a net profit of Rs 2,872 crore and revenue of Rs 14,137 crore for the fourth and final quarter of the last financial year.
HAL delivered an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin of 40 per cent for the March quarter of FY24. The company had delivered an EBITDA margin of 26 per cent during the same quarter last year. It recorded Q4FY24 EBITDA at Rs 5,901.1 crore.
HAL's share price performance
Over the past year, shares of the defence major have climbed 202 per cent, while its 1-month return is at 27.1 per cent.
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