Morgan Stanley has downgraded Hindustan Aeronautics Ltd (HAL) to equal-weight from its earlier stance, assigning a target price of Rs 5,092. The stock is currently trading at Rs 5,115.50.
While the brokerage noted that HAL continues to show strength in operating margins and new order outlook, it flagged concerns over muted execution guidance. The company has guided for 8–10% revenue growth in FY26, with operating margins estimated at 31% compared to 27% earlier.
Morgan Stanley cited a balanced risk-reward profile as the reason for the downgrade. The stock currently trades at 35 times its FY27 estimated earnings.
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