Morgan Stanley has maintained its equal-weight rating on Hindustan Aeronautics Limited (HAL) with a target price of ₹5,092 after the company delivered first-quarter results ahead of its estimates across key metrics. Adjusted revenue, EBITDA, and profit after tax were 3%, 19%, and 31% higher respectively than the brokerage’s forecasts. The EBITDA beat was largely driven by a stronger-than-expected gross margin of 68%, while lower provisions at 6.1% also aided profitability.
The brokerage said the healthy margin profile reflects efficient cost management and favourable product mix during the quarter. It added that stronger order momentum and faster execution will be critical drivers of growth in the coming quarters. While Morgan Stanley has kept its rating unchanged, the beat on margins and profits provides greater confidence in HAL’s ability to deliver on its execution commitments and sustain earnings momentum in the medium term.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
