Hindustan Aeronautics Limited (HAL), India's primary military aircraft supplier, has seen a significant surge in its stock value over the past five years, with an approximate increase of 400%. This comes in the wake of the company's successful development of advanced platforms such as Tejas and AMCA, and a robust order book valued at INR 818 billion.
The market interest in HAL was further bolstered after the company's equity shares' face and paid-up value were adjusted to INR 5 each post-split. This move seems to have resonated positively among investors, with Prabhudas Lilladher initiating coverage of HAL with a 'Buy' rating. The financial services firm has set a target price of INR 2,266 for HAL shares, suggesting an upside potential of over 17%.
Despite reporting a drop in profit for Q1 FY24, HAL managed to post a net profit of INR 814 crore. The company also reported an 8% revenue increase amounting to INR 3,915.35 crore. The company's strong financial performance is underpinned by a healthy pipeline valued at INR 2 trillion over the next five years.
The Indian government's push for indigenous defense aircraft procurement further strengthens HAL's position in the market. With its advanced platforms and strong order book, the company is well-positioned to capitalize on this trend and sustain its growth trajectory in the coming years.
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