Aerospace & Defence · HNAL
Aerospace & Defence - Equipments
from 4,906 today
We initiate coverage on Indian Defence Sector with a Buy rating on Hindustan Aeronautics and a target price of Rs 6,069.
We maintain our Buy rating with a price target of Rs. 5,800, driven by a robust order book, a strong inquiry pipeline, and solid double-digit revenue and PAT growth visibility.
We maintain a positive stance on HNAL, supported by its record order book, strategic positioning in India's defence ecosystem and the anticipated ramp-up in manufacturing programs. The Q1 performance provides a healthy start to the year, with the EBITDA/PAT beat and margin expansion further strengthening our confidence in earnings resilience.
Hindustan Aeronautics reported a healthy Q1FY27 performance with revenue growth and margin expansion, supported by strong order visibility and improving LCA execution. We maintain a 'Buy' rating with a revised target price of Rs5,795 based on a P/E of 36x Mar'28E earnings.
Hindustan Aeronautics reported a healthy set of numbers in 1QFY27, with in-line profitability and margins ahead of estimates, supported by easing supply chain issues for GE engines and expected ramps in Tejas and other platform deliveries. We reiterate BUY with a revised target price of INR5,800.
HAL reported 14.4% YoY revenue growth to INR 55.2 bn, slightly below estimates, while EBITDA and margins exceeded expectations. We remain positive on strong long-term growth visibility, backed by a robust order book and pipeline, and maintain our BUY rating with a target price of INR 6,026.
We retain our positive stance on HAL with a target price of INR 6,026, valuing the company at 40x its 1HFY28E EPS.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
