Hindustan Aeronautics (HAL)
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 30,381 | 30,981 | 33,089 | 36,377 | 44,162 |
| Profit Before Tax (Cr.) | 10,219 | 10,859 | 12,152 | 13,344 | 15,751 |
| PBT Margin | 33.6% | 35.1% | 3672.5% | 36.7% | 35.7% |
| Net Profit (Cr.) | 7,316 | 7,981 | 9,452 | 10,377 | 12,249 |
| Earnings Per Share | 109.4 | 119.3 | 141.3 | 155.2 | 183.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 5,431 | 13-Aug-2026 |
| CLSA | ▲ Outperform | 5,481 | 13-Aug-2026 |
| Choice Equity | ▲ Buy | 5,650 | 13-Aug-2026 |
| Citigroup | ▲ Buy | 5,550 | 13-Aug-2026 |
| Elara Capital | ▲ Buy | 5,350 | 17-May-2026 |
| Goldman Sachs | ▲ Buy | 5,870 | 07-Aug-2026 |
| HDFC Securities | ▼ Reduce | 3,800 | 18-May-2026 |
| ICICI Securities | ▲ Buy | 5,300 | 18-May-2026 |
| JMFinancials | ▲ Buy | 5,733 | 09-Apr-2026 |
| JPMorgan | ▲ Overweight | 5,145 | 13-Aug-2026 |
| Jeffries | ▲ Buy | 6,300 | 18-May-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 |
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. The company offers basic trainer and light combat aircraft, light transport aircraft, intermediate jet trainer aircraft, light utility and combat helicopters, maritime utility helicopters, and turbofan and turboshaft engines, as well as aerospace products, which include aluminum alloy riveted structures, propellant tanks, and cryogenic engines. It also provides avionics, accessories, and materials comprising flight data recorders, laser range systems, head up displays, auto stabilizers, inertial navigation systems, hydraulic pumps, fuel management systems, oxygen systems, gyroscopic/barometric instruments, panel instruments, ejector release units, flight control systems, wheels and brake systems, ground radars, radar computers, missile inertial navigation solutions, air borne secondary radars, radio navigation equipment, communication equipment, rolled rings, rubber products, powder metallurgy, forgings, and castings. In addition, the company offers air data computer that measures pressure altitude, calibrated airspeed, true airspeed, Mach number, vertical speed, and temperature in the atmosphere. Further, the company provides various services in the areas of aircraft and helicopters MRO, and power plants, as well as systems, accessories, and avionics. It serves space, defense, and civil industries. Hindustan Aeronautics Limited was incorporated in 1940 and is based in Bengaluru, India.