HAL shares rise by 4%

Shares of Hindustan Aeronautics Limited (HAL) saw a rise of more than 4 percent today on May 18.

Shares of Hindustan Aeronautics Limited (HAL) saw a rise of more than 4 percent today on May 18.

This stock closed at Rs 4729.30 on BSE with a gain of 4.37 percent. At the same time, the stock touched a record high of Rs 4752 in intraday. In fact, brokerage firm Jefferies has expected a rise in this stock.

This is the reason why huge buying was seen in the company's shares today. With today's rise, the market cap of the company has increased to Rs 3.16 lakh crore. The stock's 52-week low is Rs 1,490.38.

Brokerage increased the target price of HAL

Brokerage firm Jefferies has given a Buy rating to the stock and has also increased its target price.

The brokerage has kept a target price of Rs 5725 for the stock. According to this, there may be a rally of 21 percent in the shares of the company as compared to the current price. The brokerage had earlier set a target of Rs 3900.

UBS has also advised to buy the stock. The brokerage believes there is upside potential due to HAL's better order book scale-up, less competition and more choice in exports.

Jefferies says the company is 'flying high'. It also said that higher margin service income and aircraft deliveries are expected to see double digit revenue growth for 4-6 years.

Additionally, the company is expected to maintain its current margins as it focuses on cost optimization. Jefferies said export prospects are also improving.

How were HAL's quarterly results?

Hindustan Aeronautics has released excellent results in the fourth quarter. The public sector defense company declared a net profit of Rs 4309 crore in the March quarter, which is 52 percent more than Rs 2831 crore last year.

Apart from this, net sales increased to Rs 14,769 crore in the quarter, which is 18 percent more than Rs 12,495 crore in the same quarter last year.