Hindustan Aeronautics Ltd (HAL) Share Price Target 2024, 2025 to 2030

Indian Government has been focusing more and more on the Defence sector and thus we have seen an increase in the share price of HAL and other defence companies. Investors are closely monitoring Hindustan Aeronautics Limited (HAL) and its share price objective for 2024 to 2030 given the continuous expansion the Indian aviation sector has experienced in recent years.

HAL has been a desirable choice for investors wishing to take advantage of the industry’s potential because it is the premier aerospace and defense corporation in the nation. But everyone is curious as to whether HAL is a decent stock to purchase and whether it will be able to reach a share price of 10,000 INR by 2030.

As of May 17th, 2024, HAL’s share price is trading at Rs. 4,558 with a market cap of Rs.3,00,838 Cr.

In this article, we’ll look at the variables affecting HAL’s share price objective and offer our thoughts on whether or not it represents a promising investment opportunity going forward.

Hindustan Aeronautics Ltd Latest Q4 FY24 Results

• Net Profit Surge: Hindustan Aeronautics Ltd (HAL) reported a 52% year-on-year increase in net profit, reaching ₹4,308 crore for Q4FY24, up from ₹2,833 crore in the same period last year.
• Revenue Growth: The company’s revenue from operations grew by 18% year-on-year to ₹14,768.70 crore, compared to ₹12,494 crore in Q4FY23.
• Sequential Growth: On a sequential basis, net profit more than doubled from ₹1,261 crore in the preceding December quarter. Revenue rose by 140% sequentially, as Q3 is typically a weaker quarter for HAL.
• Margin Improvement: HAL’s margins for the March quarter improved to 35%, up from 25.9% a year ago.
• Expense Reduction: The company’s expenses fell by 8% to ₹9,543 crore, down from ₹10,360 crore a year ago.
• EBITDA Increase: HAL reported an EBITDA of ₹5,470 crore during the January-March period, marking a 60% increase compared to ₹3,242 crore in Q4FY23.
• Full-Year Performance: For the full fiscal year ending March 2024, HAL’s consolidated net profit rose by 31% to ₹7,621 crore from ₹5,828 crore in FY23. Revenue from operations increased by 13% to ₹30,381 crore, compared to ₹26,927 crore in the previous fiscal year.
• Order Book: As of March 31, 2024, HAL’s order book exceeded ₹94,000 crore, with significant orders expected in FY25.
• New Contracts: HAL received new manufacturing contracts worth over ₹19,000 crore and ROH contracts worth over ₹16,000 crore during FY24.
• Export Achievement: HAL signed an export contract with the Guyana Defence Forces for the supply of two Hindustan-228 aircraft, delivering them within a month.
• Offer for Sale (OFS): During the March quarter, the government issued an OFS in HAL, which successfully sailed through despite challenging market conditions. The OFS included a base issue size of 1.75% or 58.51 lakh shares, with an option to retain oversubscription of an equal amount.
• Market Reaction: Following the results announcement, HAL’s shares soared by over 11%, trading at ₹4,650 apiece as of 1525 hours on May 16.
• Trading Volume: Approximately 1.50 lakh HAL shares were traded on May 16, significantly higher than the two-week average volume of 99,000 shares. The turnover on the counter was ₹63.40 crore, with a market capitalization of ₹2,82,861.73 crore.
• Analyst Insights: Analysts remained positive on HAL ahead of its Q4 earnings. Laxmikant Shukla from YES Securities recommended viewing pullbacks towards ₹4,000-4,050 as buying opportunities, while Gaurav Dua from Sharekhan by BNP Paribas highlighted HAL as a key beneficiary of import substitution in the defense sector, predicting substantial gains over the next 2-5 years.

How to purchase Hindustan Aeronautics Ltd shares?

Hindustan Aeronautics Ltd Share Price Target: 2024 to 2030

HAL Share Price Prediction 2026 to 2030

Financial Condition of Hindustan Aeronautics Ltd: Last 5 years

	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Sales +	21,445	22,882	24,620	26,928	30,381
Expenses +	16,565	17,541	19,200	20,258	20,642
Operating Profit	4,880	5,341	5,420	6,669	9,739
OPM %	23%	23%	22%	25%	32%
Other Income +	415	360	986	1,672	1,899
Interest	359	267	65	64	32
Depreciation	998	1,157	1,110	1,784	1,406
Profit before tax	3,938	4,277	5,231	6,493	10,199
Tax %	28%	24%	3%	10%	26%
Net Profit +	2,842	3,239	5,086	5,811	7,595
EPS in Rs	42.49	48.44	76.05	86.89	113.57
Dividend Payout %	39%	31%	26%	32%	19%

Hindustan Aeronautics Ltd (HAL) demonstrated impressive financial growth from FY20 to FY24, with sales revenue increasing from ₹21,445 crore to ₹30,381 crore, reflecting a robust CAGR of approximately 9.1%. Expenses grew at a slower rate, showcasing improved cost management. Operating profit saw a significant rise, with the operating profit margin (OPM) improving to 32% in FY24 from 23% in FY20. Other income also contributed positively, increasing to ₹1,899 crore in FY24. Interest expenses decreased substantially, while depreciation showed some variability. Profit before tax (PBT) surged to ₹10,199 crore in FY24, up from ₹3,938 crore in FY20. Net profit followed an upward trajectory, reaching ₹7,595 crore in FY24, and EPS increased significantly to ₹113.57. The dividend payout ratio fluctuated, with a notable 19% in FY24. Overall, HAL’s financial performance highlights substantial growth in revenue and profitability, driven by enhanced operational efficiency and strategic cost management, positioning the company well for future success in the defense sector.

What do investors need to know before investing in HAL shares?

Before investing in HAL shares, investors should consider the following:

1. Favorable Market Projections: Analysts predict a revenue CAGR of 11% over FY2024-2026, with high margins compared to peers, suggesting strong future performance.
2. Government Defence Spending: The increase in India’s defense capital outlay and the focus on indigenous manufacturing offer substantial opportunities for HAL, enhancing its long-term prospects.
3. Growing Order Book: HAL has a significant order book and pipeline, particularly in manufacturing contracts, which is expected to bolster its financials in the coming years.
4. R&D and Export Opportunities: The company’s investment in R&D and strategic partnerships positions it well for technological advancements. Additionally, its efforts in expanding exports, including contracts with Argentina, the Philippines, and Egypt, open new revenue streams.

Can HAL’s share price reach 10,000 INR by 2030?

It is difficult to predict the exact price target for HAL’s shares, as it depends on various factors. However, analysts have predicted positive growth for the company in the coming years. According to our analysis, HAL may reach Rs.10,000 somewhere in 2028.

What is HAL’s share price target for 2025?

As per our analysis, Hindustan Aeronautics Limited in 2025 is expected to trade in between ₹4,045.36 to ₹6,177.51.

What is HAL’s share price target for 2030?

As per our analysis, Hindustan Aeronautics Limited in 2030 is Projected to trade in a range between ₹10,251.65 to ₹15,929.08.

Is HAL a profit-making company?

Yes, HAL is a profitable company.

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Conclusion

Author: Neelam KushwahaNeelam Kushwaha is a Bachelor's student in Computer Science at Hansraj College with a keen interest in finance and the stock market. She is a senior editor at Financesrule, where she shares her insights and expertise in researching stock price predictions. Neelam's analytical skills and unique perspectives make her a valuable asset to the financial community. In her free time, she enjoys reading and traveling.

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