HAL Share Price: Elara upgrades to Buy post Q4 results, expects more 18% upside in stock price

Brokerage firm Elara has upgraded the defence major HAL (Hindustan Aeronautics Ltd) to a Buy rating and expects another 18% upside in HAL share price from current levels.

Brokerage firm Elara has upgraded the defence major HAL (Hindustan Aeronautics Ltd) to a Buy rating and expects another 18% upside in HAL share price from current levels. Elara in its note post the Q4 results of HAL said that it has upgraded the stock to Buy from Accumulate earlier and now has a target price of Rs 5,590 for HAL shares against Rs 4,140 earlier. The new target price for HAL shares implies a 18% upside in the stock from its previous close of Rs 4,715 on the NSE. HAL reported a 52% YoY growth in its Q4 net profit, coming in at Rs 4,308 crore.

“We revise to Buy from Accumulate, with a higher TP of INR 5,590 from INR 4,100 based on 45x (from 35x) March 2025E P/E as we roll forward. Our revised TP is driven by expectations from a new stream of the exports business, the surge in inflows of INR 1.6tn, rising margin, and sustained double-digit earnings growth,” said Elara Securities in its note.

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The brokerage further added that the unexplored export opportunities in the aircraft and helicopter industry warrant a rerating. “We expect an earnings CAGR of 17% during FY24-26E with an ROE of 24% during FY25-26E. Key risks to our call include lower spending in the defence capital budget, less domestic procurement allocation, increased competition from the private sector, and delay in execution,” Elara said.