By Admin 
Global brokerage firm Jefferies Report has released a positive report on Hindustan Aeronautics Limited (HAL). Brokerage believes that the strong position of HAL in the defense sector, rapid orders and increasing margin may lead to the company’s stock in the next few times.
Jefferies eye on HAL’s financial health
According to Jeffers, HAL has received new orders at an annual growth rate of 28 per cent in FY 2025, compared to the previous year, this increase was 214 per cent. The company’s revenue is continuously increasing in double digits and margin has also improved. HAL and Bharat Electronics Limited (BEL) have performed better in margin expansion, based on which Jeffers has recommended ‘buy’ on HAL’s stock.
Bull, base and beer case
Jeffers has introduced three possible scenario for HAL’s shares. In the base case, brokerage has kept HAL’s target price of Rs 6,475, which is 30 percent more than the current level. In the bull case, if the ‘Make in India’ program gets further momentum and domestic orders increase, then the stock can reach Rs 7,500, which shows a 50 per cent gain. At the same time, if the defense budget is cut in the beer case or the order process is slow, then the stock may fall to Rs 3,750.
Hal’s performance
HAL’s stock has given 1,789 percent return in the last five years. At the same time, so far this year, the stock has registered an increase of more than 20 percent. However, on Friday, the stock closed at Rs 4,982.00, which shows a decline of 1.77 per cent. According to Bloomberg, 15 of the 20 analysts monitoring HAL have recommended ‘Buy’, 3 ‘Hold’ and 2 have recommended ‘Sell’.
What is the message for investors?
According to the report of Jefferies, HAL has good opportunities for investors, but it is necessary to monitor the defense budget and government policies. If the government further encourages ‘Make in India’ and HAL gets new orders, then there can be a huge jump in the stock. However, it would be appropriate to consult your financial advisor before any investment.
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