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 February 13th, 2024, HAL’s share price is trading at Rs.2,859 with a market cap of Rs.1,91,196 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 Q3 FY24 Results
- HAL’s Q3 FY24 net profit rose by 9.2% YoY to Rs 1,261.4 crore.
- Revenue expanded to Rs 6,061.3 crore, marking positive growth.
- Margin improved by 630 basis points to 23.7% YoY.
- EBITDA jumped by 45.5% to Rs 1,434 crore.
- Analysts at CLSA issued an “outperform” call with a target price of Rs 3,225 per share (13% upside)
- HAL shares faced selling pressure, trading 2.7% lower at Rs 2,884.7 apiece on BSE.
- Standalone net profit rose by 8.6% YoY to Rs 1,253 crore; revenue climbed 7% YoY to Rs 6,061 crore.
- First interim dividend of Rs 22 per share declared for FY 2023-24
- Foreign institutional investors increased stake to 12.9%, while mutual funds reduced theirs to 6.6%
- HAL shares trade at a PE ratio of 30.9x, lower than the sector’s 102.9x.
| When | Maximum Price | Minimum Price |
| February 2024 | ₹2,902.90 | ₹2,524.26 |
| March 2024 | ₹2,962.14 | ₹2,575.78 |
| April 2024 | ₹2,875.87 | ₹2,500.75 |
| May 2024 | ₹2,833.37 | ₹2,463.80 |
| June 2024 | ₹2,935.37 | ₹2,552.49 |
| July 2024 | ₹2,906.01 | ₹2,526.97 |
| August 2024 | ₹3,022.25 | ₹2,628.05 |
| September 2024 | ₹3,143.14 | ₹2,733.17 |
| October 2024 | ₹3,081.51 | ₹2,679.58 |
| November 2024 | ₹3,173.96 | ₹2,759.96 |
| December 2024 | ₹3,253.31 | ₹2,828.96 |
In February 2024, the maximum anticipated price for HAL is projected to reach ₹2,902.90, while the minimum is expected to be ₹2,524.26. Throughout the year, monthly variations are foreseen, with both maximum and minimum prices reaching their peak in December 2024 at ₹3,253.31 and ₹2,828.96, respectively.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹3,318.37 | ₹2,552.60 |
| February 2025 | ₹3,403.46 | ₹2,618.05 |
| March 2025 | ₹3,536.20 | ₹2,720.15 |
| April 2025 | ₹3,466.86 | ₹2,666.81 |
| May 2025 | ₹3,365.88 | ₹2,589.14 |
| June 2025 | ₹3,517.35 | ₹2,705.65 |
| July 2025 | ₹3,448.38 | ₹2,652.60 |
| August 2025 | ₹3,555.03 | ₹2,734.64 |
| September 2025 | ₹3,679.46 | ₹2,830.35 |
| October 2025 | ₹3,775.12 | ₹2,903.94 |
| November 2025 | ₹3,869.50 | ₹2,976.54 |
| December 2025 | ₹3,966.24 | ₹3,050.95 |
As we step into January 2025, HAL’s maximum price is expected to touch ₹3,318.37, offering an optimistic outlook, while the minimum is anticipated to be ₹2,552.60. Throughout the year, we can expect fluctuations, with December 2025 projected to see HAL’s prices at their highest, reaching ₹ 3,966.24 (maximum) and ₹3,050.95 (minimum). It’s a journey where HAL’s values echo the dynamic nature of the market, offering a glimpse into potential highs and lows.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹4,362.29 | ₹3,053.60 |
| 2027 | ₹4,798.52 | ₹3,358.96 |
| 2028 | ₹6,717.92 | ₹3,358.96 |
| 2029 | ₹5,816.38 | ₹2,908.19 |
| 2030 | ₹7,561.30 | ₹5,292.91 |
The share price of Hindustan Aeronautics Limited is anticipated to exhibit a positive trajectory from 2026 to 2030. Starting at ₹3,053.60 in 2026, the stock is projected to reach a maximum of ₹7,561.30 by 2030, showcasing a consistent upward trend.
Noteworthy growth phases include 2028, where the maximum price is estimated to be ₹6,717.92. While 2029 sees a dip to ₹2,908.19, the subsequent year, 2030, witnesses a substantial rebound, reflecting HAL’s resilience and potential in the market. These predictions suggest a promising outlook for investors considering HAL for the long term.
Financial Condition of Hindustan Aeronautics Ltd: Last 5 years
| HAL Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Crore Rs) |
20,008 | 21,445 | 22,882 | 24,620 | 26,928 |
| Expenses (Crore Rs) |
15,440 | 16,565 | 17,541 | 19,200 | 20,265 |
| Operating Profit (Crore Rs) |
4,569 | 4,880 | 5,341 | 5,420 | 6,663 |
| OPM % | 23% | 23% | 23% | 22% | 25% |
| Other Income (Crore Rs) |
376 | 415 | 360 | 986 | 1,672 |
| Interest (Crore Rs) |
177 | 359 | 267 | 65 | 58 |
| Depreciation (Crore Rs) |
1,024 | 998 | 1,157 | 1,110 | 1,784 |
| Profit Before Tax (Crore Rs) |
3,742 | 3,938 | 4,277 | 5,231 | 6,493 |
| Tax % | 37% | 28% | 24% | 3% | 10% |
| Net Profit (Crore Rs) |
2,346 | 2,842 | 3,239 | 5,086 | 5,811 |
| EPS in Rs | 70.16 | 84.99 | 96.88 | 152.11 | 173.79 |
| Dividend Payout % |
28% | 39% | 31% | 26% | 23% |
Hindustan Aeronautics Limited has shown consistent growth and stability in its financial performance over the past five years, from 2019 to 2023. The company’s sales figures have steadily increased, reaching Rs. 26,928 crores in 2023, indicating a positive trend in its business operations.
Despite rising expenses, HAL has managed to maintain a healthy operating profit, with a notable increase from Rs. 4,569 crores in 2019 to Rs. 6,663 crores in 2023. The operating profit margin (OPM %) has remained relatively stable, ranging between 22% and 25% during this period. HAL has also generated additional income through other sources, such as investments and non-operational activities.
Although interest expenses and depreciation costs have fluctuated, the company has consistently delivered a profitable performance before taxes, with a significant growth trajectory observed over the years. HAL’s effective tax rate has varied, but it has remained relatively moderate, ensuring a reasonable portion of the profits are retained.
Net profit has shown substantial growth, reaching Rs. 5,811 crores in 2023, contributing to a steady increase in earnings per share (EPS) from 70.16 in 2019 to 173.79 in 2023. With a prudent dividend payout policy, HAL has consistently rewarded its shareholders while retaining a portion of its profits for future growth and investments.
HAL’s financial performance reflects its strong position in the aerospace industry, highlighting its ability to navigate challenges and deliver consistent value to its stakeholders.
Before investing in HAL shares, investors should consider the following:
- Strong Financial Performance: HAL has shown robust growth with a 31% increase in consolidated net profit and an 8% rise in sales, indicating a solid financial footing.
- Favorable Market Projections: Analysts predict a revenue CAGR of 11% over FY2024-2026, with high margins compared to peers, suggesting strong future performance.
- 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.
- 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.
- 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.
FAQS
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 2035.
As per our analysis, Hindustan Aeronautics Limited in 2025 is expected to trade in between ₹3,966.24 and ₹2,552.60.
As per our analysis, Hindustan Aeronautics Limited in 2030 is expected to trade in between ₹7,561.30 and ₹5,292.91. HAL’s average share price target for 2030 seems to be ₹6,427.11.
Is HAL a profit-making company?
Yes, HAL is a profitable company.
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Conclusion
In conclusion, Hindustan Aeronautics Limited emerges as a robust investment prospect bolstered by a positive trajectory in share prices from 2024 to 2030. The Indian government’s heightened focus on the defense sector, coupled with HAL’s premier position in aerospace and defense, contributes to its appeal among investors.
The company’s financial health, demonstrated by consistent sales growth, prudent financial management, and a strong order book, instills confidence. The anticipated share price targets reflect optimism about HAL’s future performance. While challenges exist, such as market volatility and global geopolitical dynamics,
HAL’s strategic initiatives, research and development endeavors, and export ventures position it for sustained success. Investors should closely monitor market trends, defense spending, and HAL’s execution of its strategic plans to make informed decisions regarding this promising aerospace player.
What did we learn?
- 1 Hindustan Aeronautics Ltd Latest Q3 FY24 Results
- 2 How to purchase Hindustan Aeronautics Ltd shares?
- 3
- 4 Hindustan Aeronautics Ltd Share Price Target: 2023 to 2030
- 5 Financial Condition of Hindustan Aeronautics Ltd: Last 5 years
- 6 What do investors need to know before investing in HAL shares?
- 7 FAQS
- 8 Conclusion
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