HAL Share Price Still Has More Room To Climb Despite Gaining 83% This Year, Say Analysts

Shares of Hindustan Aeronautics (HAL) were gaining on Friday as the defence giant received strong recommendations from brokerages.

The stock climbed over 4% on Thursday after Rajnath Singh took charge as defence minister for a second term and said the ministry would aim to more than double defence exports to ₹50,000 crore in the next five years.

What Happened: HAL has earned a “buy” rating from Jefferies, with a target price of ₹5,725 per share, signaling a 12% upside from current levels.

Jefferies highlights HAL’s focus on indigenisation and exports as key drivers for its continued double-digit growth over the next three to five years. The brokerage firm notes HAL’s high technology entry barriers and near-monopoly status, which are not fully reflected in current valuations.

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Elara Securities also rated HAL a “buy”, setting a target price of ₹5,590 per share. They pointed to the increasing share of indigenisation and untapped export opportunities in the aircraft and helicopter industry as key factors for a re-rating.

Elara expects an earnings compound annual growth rate of 17% during FY24-26 with a return on equity of 24% during FY25-26, driven by new streams of export business, rising margins and sustained double-digit earnings growth.

Price Action: HAL’s share price climbed 1.81% to ₹5,192.25 in the morning session on Friday. The stock has risen 83.71% so far this year.

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