The company’s revenue from operations increased 11% year-on-year (YoY) to Rs 4,347 crore, up from Rs 3,915 crore in the same period last year.
EBITDA for the quarter increased 13% YoY to Rs 994 crore, up from Rs 880 crore in the same quarter last year. Meanwhile, EBITDA margins rose by 39 basis points to 22.9%, compared to 22.5% in the same period last year.
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Here is what brokerages say:
Jefferies: Buy | Target price: Rs 5,725
Jefferies has maintained a buy rating on HAL with a target price of Rs 5,725.
Q1 revenue exceeded estimates, but EBITDA was lower due to margin contraction. A strong order book and visible pipeline instill confidence in sustained double-digit growth over the next 3-5 years, while volatile margins are expected to improve in H2 with increased revenue delivery.CLSA: Buy | Target price: Rs 4,731
CLSA has maintained an Outperform rating on HAL with a target price of Rs 4,731.The company’s pipeline remains strong, but Q1 performance was weak. Large engine orders have been pushed to Q2, with the remainder expected in H2 FY25. Orders slowed due to delays in Russia-linked programs, now anticipated for Q2 FY25.
Antique Broking: Buy | Target price: Rs 6,145
Antique Broking remains confident in HAL’s business prospects, as India modernizes its armed forces due to obsolescence and the current geopolitical situation. This modernization drive is leading to strong orders for fighter aircraft, helicopters, and their respective engines and accessories. HAL is expected to deliver robust operational performance over FY24–27, supported by a strong order book.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
