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HAL shares will cross levels of ₹6,000, say six analysts tracking the stockOut of the 20 analysts that have coverage on HAL, 17 of them have a "buy" rating on the stock, two have a "hold" rating, and one has a "sell" recommendation.By Meghna Sen   May 19, 2025, 8:26:19 AM IST (Published)3 Min ReadShares of state-run Hindustan Aeronautics, which rose 15% last week, are expected to cross the ₹6,000 mark, according to six analysts tracking the stock, following the company's March quarter results.

HAL's net profit declined by 8% from last year to ₹3,958 crore, but was higher than the estimates of ₹2,592 crore. Revenue also declined by 7% to ₹1,3700 crore. EBITDA fell by 10% from the year-ago period to ₹5,292 crore, while margins narrowed by 140 basis points to 38.6%.

The management of HAL, in its earnings call, projected its revenue growth in FY26 to be between 8% to 10%. It said that the guidance will be revisited after six months, adding that while they expect double-digit revenue growth from financial year 2027, it could happen this year itself.

Over the next three to four years, HAL intends to maintain its adjusted EBITDA margin at 31%.

BrokeragesTargetsAntique₹6,545Jefferies₹6,475ICICI Securities₹6,150Nirmal Bang₹6,140JPMorgan₹6,105Nuvama₹6,000

Global brokerage firm Jefferies has maintained a 'Buy' rating on HAL, and raised its price target to ₹6,475 per share.

The brokerage said that HAL's came in 4% above expectations, with margins surprising positively by 765 basis points, reaching 38.7%.

The management articulated that margins in the range of 30–31% are sustainable, supported by a continued focus on cost optimisation. Jefferies expects high-margin service income and consistent aircraft deliveries to drive double-digit revenue growth over the next 3–5 years.

The brokerage mentioned that HAL's FY26 revenue guidance of 8–10% appears conservative.

Jefferies also highlighted recent India-Pakistan tensions, during which Prime Minister Narendra Modi praised Made-in-India equipment, indicating a continued focus on domestic manufacturing.

JPMorgan has an 'Overweight' rating on HAL, with a price target of ₹6,105.

The foreign brokerage said that HAL’s FY25 earnings call laid out two positives and one negative.

On positive side, HAL guided to:

1) ₹1 lakh crore of manufacturing orders over the next 1-2 years, aiding already strong order book of ₹1.85 lakh crore.

2) Continuation of very strong EBITDA margin, 31% in FY25, expected to sustain into to FY26E and the medium term.

On the negative side, the FY26E revenue growth guidance of 8-10% was seen as underwhelming, compared to market expectations of low to mid-teens.

Management indicated the possibility of revising the guidance upward during the year and described the current outlook as conservative.

JPMorgan said that, following a sharp rally in recent weeks, the muted revenue growth guidance could act as a sentiment dampener.

On the flip side, Morgan Stanley has downgraded HAL to 'Equal-weight' as it said the risk- reward appears balanced. The brokerage has a price target of ₹5,092 on the stock.

According to the brokerage, the margin and new order outlooks were strong, but market may be concerned about muted execution guidance.

HAL is trading at 35 times its estimated FY27 earnings, which is a 30% premium to its five-year average.

Morgan Stanley is awaiting a better entry opportunity or stronger execution on the manufacturing order book

Out of the 20 analysts that have coverage on HAL, 17 of them have a "buy" rating on the stock, two have a "hold" rating, and one has a "sell" recommendation.

Shares of HAL settled with gains of 5.15% on Friday, at ₹5,115.50. The stock has risen 23% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHALHindustan Aeronauticsshare market today