Hindustan Aeronautics Limited Shares Drop Despite Strong Q4 Results
HAL shares drop over 4% after Q4 results. What are Goldman Sachs and Nomura saying?
The Economic TimesImage: The Economic Times
Shares of Hindustan Aeronautics Limited (HAL) fell by 4.3% to ₹4,411 despite reporting a consolidated net profit of ₹4,196 crore for Q4 FY26, a 6% increase year-on-year. While Nomura maintains a 'Buy' rating with a target price of ₹5,954, Goldman Sachs has a 'Neutral' rating with a lowered target of ₹5,225.
- 01HAL's Q4 FY26 net profit rose 6% to ₹4,196 crore.
- 02Nomura's target price for HAL is ₹5,954, indicating a 29% upside.
- 03Goldman Sachs lowered its target price to ₹5,225, maintaining a 'Neutral' rating.
- 04HAL's order backlog stands at ₹2.54 lakh crore, providing revenue visibility.
- 05Concerns exist over delays in the delivery of Tejas Mk-1A aircraft.
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Shares of Hindustan Aeronautics Limited (HAL) fell 4.3% to a low of ₹4,411 on the Bombay Stock Exchange (BSE) following the release of its Q4 FY26 results. The company reported a consolidated net profit of ₹4,196 crore, marking a 6% increase from ₹3,977 crore in the same quarter last year. Revenue from operations also saw a 2% year-on-year rise to ₹13,942 crore. Despite these positive results, HAL's stock performance was impacted by concerns regarding execution delays. Nomura has maintained its 'Buy' rating with a target price of ₹5,954, while Goldman Sachs has a 'Neutral' rating, lowering its target to ₹5,225. Analysts noted HAL's robust order backlog of ₹2.54 lakh crore, which suggests strong revenue potential, although execution issues remain a concern. Additionally, JM Financial has a 'Buy' rating with a target price of ₹4,875, but flagged risks related to delays in aircraft deliveries and deteriorating working capital metrics.
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The decline in HAL's share price could affect investor confidence and the company's market capitalization, which currently stands at nearly ₹2.98 lakh crore.
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