Hindustan Aeronautics (HAL)
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Hindustan Aeronautics Limited (HAL) is positioned for robust growth, supported by a substantial order book of INR 2.54 trillion and a strategic focus on scaling production of key platforms like the LCA Mk-1A and HTT-40. Management's guidance of 10-12% revenue growth and stable EBITDA margins of 30-31% reflects confidence in operational execution, despite challenges related to engine supply and program timelines. The shift towards a balanced revenue mix, with an emphasis on higher-margin manufacturing, is expected to enhance profitability over the long term. However, execution risks remain a critical watchpoint, particularly concerning timely component deliveries and the successful rollout of advanced platforms. The favorable geopolitical environment and increasing government defense spending further bolster HAL's growth prospects. Overall, while the outlook remains positive, the company must navigate potential delays and supply chain complexities to realize its ambitious targets over the next 12-24 months
Why We Like This Stock
- Substantial order book of INR 2.54 trillion provides multi-year revenue visibility
- Management's guidance of 10-12% revenue growth and stable margins reflects confidence in operational execution
- Strategic pivot towards higher-margin manufacturing is expected to enhance long-term profitability
Things To Watch Out For
- Execution risks related to engine supply and program timelines could impact revenue realization
- Dependence on a single primary customer (Ministry of Defence) poses structural risks
- Potential delays in the rollout of advanced platforms may hinder growth momentum
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 30,381 | 30,981 | 33,089 | 36,226 | 41,157 |
| Profit Before Tax (Cr.) | 10,219 | 10,859 | 12,152 | 13,119 | 14,696 |
| PBT Margin | 33.6% | 35.1% | 36.7% | 36.2% | 35.7% |
| Net Profit (Cr.) | 7,316 | 7,981 | 9,452 | 10,202 | 11,429 |
| Earnings Per Share | 109.4 | 119.3 | 141.3 | 152.5 | 170.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 5,950 | 24-Sep-2026 |
| CLSA | ▲ Outperform | 5,481 | 21-Sep-2026 |
| Citigroup | ▲ Buy | 6,175 | 21-Sep-2026 |
| Goldman Sachs | ▲ Buy | 5,870 | 21-Sep-2026 |
| HSBC | ▲ Buy | 6,350 | 16-Sep-2026 |
| HDFC Securities | ► Hold | 2,590 | 09-Sep-2026 |
| Jeffries | ▲ Buy | 6,800 | 18-Aug-2026 |
| Anand Rathi | ▲ Buy | 5,431 | 13-Aug-2026 |
| Choice Equity | ▲ Buy | 5,650 | 13-Aug-2026 |
| ICICI Securities | ▲ Buy | 5,760 | 13-Aug-2026 |
| JPMorgan | ▲ Overweight | 5,145 | 13-Aug-2026 |
| Kotak Securities | ► Add | 5,304 | 13-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 13-Aug-2026 |
| Motilal Oswal | ▲ Buy | 5,800 | 13-Aug-2026 |
| Nomura | ▲ Buy | 6,314 | 13-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 5,795 | 13-Aug-2026 |
| UBS | ▼ Reduce | 3,200 | 18-May-2026 |
| Elara Capital | ▲ Buy | 5,350 | 17-May-2026 |
Company Overview
Show Company Profile
Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India and internationally. It serves national and international defense customers, as well as civil customers. Hindustan Aeronautics Limited was incorporated in 1963 and is based in Bengaluru, India.