Hindustan Aeronautics Ltd. (HAL) shares rose by 7% on Thursday after ISRO Chairman S. Somanath opened a new HAL facility in Bengaluru to support the LVM3 rocket program.
Key Points
- Stock Performance: HAL’s stock closed at ₹4,669 per share on June 6, up from ₹4,364 the previous day.
- New Facility: The new facility will enable HAL to produce six LVM3 rockets annually, up from the current two.
- Brokerage Rating: CLSA maintains an ‘outperform’ rating on HAL, with a target price of ₹4,731 per share.
- EBITDA Margin: HAL expects its EBITDA margin to be between 32% and 33% over the next two years.
- Order Book: HAL’s order book exceeded ₹94,000 crore at the end of FY24, with more significant orders expected in FY25.
Growth Drivers
- Strong Order Pipeline: HAL has a robust order book and expects to maintain its growth momentum.
- Government Support: Defence stocks, including HAL, have performed well due to the Indian government’s push for indigenizing defence manufacturing under the Atmanirbhar Bharat initiative.
HAL’s stock has risen 170% over the past 12 months, despite being below its recent high of ₹5,444.
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