HAL‘s share price was upbeat on Friday morning as brokerages remained bullish on the stock after the June quarter results.

What Happened: The defence major reported a consolidated net profit of ₹1,437 crore for the quarter, a 76% increase from ₹814 crore in the same period last year. This net profit was bolstered by a tax refund of approximately ₹256 crore.

Revenue from operations for the quarter reached ₹4,347 crore, marking an 11% increase from ₹3,915 crore in the corresponding quarter of the previous year.

Analyst Reactions: Jefferies maintained its “buy” rating on HAL with a target price of ₹5,725. The analysts noted that while the defence contractor’s revenue beat its estimates, EBITDA came in lower due to margin contraction.

However, the research firm expressed confidence in HAL’s strong order book, which supports expectations of double-digit growth over the next three to five years.

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CLSA also maintained its “outperform” rating on HAL with a target price of ₹4,731. Despite a weak Q1, the order pipeline remains intact, the brokerage noted.

The analysts also highlighted that HAL’s EBITDA decreased by 6%, but profit after tax went up 14% year-on-year. The slowdown in orders was primarily due to delays in Russia-linked programs, the brokerage noted.

Antique Broking also maintained its “buy” rating for the stock with a price target of ₹6,145. This indicates an around 30% upside from the stock’s last closing price. The brokerage said that HAL delivered a robust operational performance in Q1FY25, beating its estimates on revenue, EBITDA and net profit.

Overall, analysts remain confident in HAL's business prospects as India continues to modernise its armed forces, driven by factors such as obsolescence and an uncertain geopolitical environment. This modernisation is expected to result in strong orders for fighter aircraft and helicopters, along with the development of their respective engines and accessories.

Price Action: HAL’s share price was up 1.35% to trade at ₹4,724.80 as the markets opened on Friday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.