Hindustan Aeronautics Ltd.’s shares extended their gains for the second consecutive trading session on Friday, following the company’s first-quarter profit surpassing analysts’ estimates. The stock rose 2.4% to Rs 4,776.30 apiece, its highest level since August 14, before paring gains to trade 0.82% higher at Rs 4,700 apiece.
The company’s Q1 profit surged 76.5% year-on-year to Rs 1,437.1 crore, beating the consensus estimate of Rs 1,134 crore. The increase in net profit is attributed to a tax refund of Rs 260.1 crore in the quarter. Profit before tax reported a 45.4% increase, while revenue rose 11% to Rs 4,347.5 crore.
The company’s depreciation expense declined 26% to Rs 149.2 crore, and employee expenses fell 11.1% to Rs 1,247.6 crore. The stock has risen 141.02% in the last 12 months and 66.96% year-to-date.
Out of 16 analysts tracking the company, 13 maintain a ‘buy’ rating, one recommends a ‘hold,’ and two suggest a ‘sell,’ with an average 12-month consensus price target implying a 12.3% upside.
