Hindustan Aeronautics jumped 4% higher at the bourses on Monday following the company’s second-quarter results where the firm’s net profit was seen jumping by 22%.

What Happened: The aerospace and defence company’s net profit for the quarter under review stood at ₹1,510.4 crore, ahead of the street’s estimates. Revenue from operations came in at ₹5,976.29 crore, a 6% increase year-on-year, below the analysts’ estimates.

CLSA has an “outperform” rating on HAL with a target price of ₹4,731. Despite delays in Russian aircraft and helicopter orders, HAL’s order pipeline for the next decade remains strong at $45 billion (₹3.8 lakh crore), it said.

The brokerage sees an expected order of large helicopters and Sukhoi aircraft in the second half of FY25, along with visibility on the GE engine deal as the major catalysts in the firm’s growth.

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Jefferies has a “buy” rating on HAL with a target price of ₹5,500. In Q2 FY25, the company saw a 7% YoY increase in EBITDA, with margins improving by 37 basis points to 27.5%.

The higher-margin service income likely played a key role in the performance, especially given delays in aircraft deliveries due to engine supply issues with its partnership with GE, the brokerage said.

Antique Broking also maintained its “buy” rating for the stock with a target price of ₹5,902. Antique Broking expressed confidence in HAL’s long-term business prospects and execution capabilities. The brokerage estimates that HAL is on track to achieve a 15% compound annual growth rate (CAGR) in revenue over FY24–27E.

With the potential for multi-year double-digit earnings growth and a robust return ratio profile exceeding 20%, analysts at Anrique believe the stock offers an attractive valuation at current levels.

Price Action: Shares of HAL rose 2.62% to trade at ₹4,194.05 on Monday morning. The stock jumped 4% to hit an intraday high of ₹4,248.

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