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Business Standard
14-05-2025
- Business
- Business Standard
HAL shares up 4% despite posting fall in Q4 YoY PAT; Here are more details
Hindustan Aeronautics or HAL share price advanced 4 per cent in trade on Wednesday, logging an intraday high at ₹4,798 per share on BSE after posting Q4 results. The stock gained for the second consecutive session, gaining nearly 7 per cent in two days. At 1:45 PM, HAL shares were up 2.44 per cent at ₹4,767.4 per share on the BSE. In comparison, the BSE Sensex was up 0.12 per cent at 81,248.65. The market capitalisation of the company stood at ₹3,18,634.50 crore. The 52-week high of the stock was at ₹5,675 per share and the 52-week low of the stock was at ₹3,045.95 per share. In the past one year, HAL shares have gained 13 per cent as against Sensex's rise of 11 per cent. Catch Stock Market Updates Today LIVE HAL Q4 results 2025 The aerospace and defence company posted its Q4 results on Wednesday during market hours. The consolidated net profit for the quarter under review stood at ₹39,766.6 crore as compared to ₹43,087.1 crore a year ago, recording a decline of 7.7 per cent year-on-year (Y-o-Y). The company's consolidated revenue from operations stood at ₹1,36,998.5 crore in Q4, down 7.2 per cent from ₹1,47,687.5 crore in Q4FY24. Domestic brokerage Motilal Oswal in its April 11, 2025, report initiated coverage on HAL with a 'Buy' rating and set the target at ₹5,100 per share as the company boasts a strong order book of ₹1.8 trillion as of March 31, 2025, along with a promising prospect pipeline of ₹6 trillion, which is likely to be awarded over the next few years. The company, according to Motilal Oswal is transitioning from a traditional licensed model to an indigenised model and is currently working on marque projects such as Tejas Mk1, Tejas Mk1a, Su-30 upgrade, Dornier-25, and Light Utility Helicopter (LUH), et al. These projects are anticipated to fuel manufacturing revenue growth for HAL. ALSO READ | About HAL HAL is a state-owned aerospace and defense company based in India. It is one of the largest aerospace manufacturers in Asia and plays a critical role in the development, production, and maintenance of aircraft, helicopters, and related systems for the Indian Armed Forces and civilian markets. The company has been instrumental in producing fighter jets, transport aircraft, and advanced avionics systems. It is also a key player in the defense sector, contributing to India's self-reliance in defense manufacturing.
Mint
10-05-2025
- Business
- Mint
India-Pakistan war buzz: HAL vs BEL vs Mazagon Dock Shipbuilders — which defence stock to buy amid rising drone attacks?
India-Pakistan war buzz: Despite showcasing resilience against the India-Pakistan war buzz, the Indian stock market witnessed sell-off pressure on the last two sessions last week. After going off on Thursday, key benchmark indices of Dalal Street came under sharp selling pressure on Friday. However, defence stocks continue to remain bulls' favourite. Indian defence majors Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Mazagon Dock Shipbuilders, Apollo Micro Systems, etc., witnessed substantial upside despite weak trends on Dalal Street. According to stock market experts, these defence stocks are rising due to the distinct investment opportunity created by the rising India-Pakistan war buzz. Comparing HAL, BEL and Mazagon Dock Shipbuilders shares, they said that each company presents unique opportunities, and investors should consider their individual investment goals and risk tolerance when making a decision. However, they maintained that BEL shares remain stable due to its diversified portfolio and alignment with the government's defence initiatives. Comparing ther returns prospect among HAL, BEL, and Mazagon Dock Shipbuilders, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, 'HAL has demonstrated robust financial performance, with a 14% increase in consolidated net profit for Q3 FY25, reaching ₹ 1,440 crore, driven by strong demand from the Indian Ministry of Defence. The company's revenue from operations rose 15% year-on-year to ₹ 6,957 crore in the same quarter. HAL's order book is projected to reach ₹ 2.5 trillion by FY26, bolstered by significant orders such as 97 Tejas Mk1a aircraft and 156 Light Combat Helicopters, totalling ₹ 1.3 trillion. Additionally, HAL secured fresh orders worth ₹ 55,800 crore in FY25, including manufacturing and repair contracts.' "BEL, a leader in defence electronics, has a diversified portfolio encompassing radars, communication systems, and electronic warfare equipment. On 1 April 2025, the company announced total order inflows of ₹ 18,715 crore for FY24- 25, falling short of its ₹ 25,000 crore target. During its Q3 FY25 earnings call, BEL's management had guided analysts toward achieving this milestone, but actual inflows failed to meet expectations. As of 1 April 2025, BEL's total order book is around ₹ 71650 crore, including the export order book of $359 million. BEL posted a provisional and unaudited turnover of ₹ 23,000 crore for FY25, reflecting a 16% growth from ₹ 19,820 crore in the previous year," Seema added. The SMC Global Securities expert said that BEL's strategic position in the defence sector and its focus on indigenisation align with the government's push for self-reliance in defence manufacturing. The company's strong order book and consistent performance make it a stable investment choice in defence. Highlighting the fundamentals of Mazagon Dock Shipbuilders, Seema Srivastava of SMC Global Securities, said, "MDL has shown impressive financial growth, with EBITDA soaring 36.63% YoY to ₹ 1,104 crore in the quarter ended 31 December 2024. Operating margin improved to 25% in Q3 FY25, compared with 22% registered in Q3 FY24. The shipbuilding company's total order book stood at ₹ 34,787 crore as of 31 December 2024, and it is expected to sustain operations for the next 4-5 years. MDL's involvement in high-profile projects like the P-75 submarines and P-17A frigates positions it strategically in India's naval defence sector. Furthermore, the government's announcement of a ₹ 25,000 crore Maritime Development Fund is expected to bolster the shipbuilding industry, potentially benefiting MDL." Regarding HAL share price and valuations, Gaurav Goel, Founder and Director at Fynocrat Technologies, said, "HAL, with a market cap of ₹ 3.01 lakh crore, trades at a P/E ratio 34.8. It delivers excellent efficiency with an ROCE of 38.9% and an ROE of 28.9%. Its sales growth over five years has been 8.71%, but profit growth has been a strong 26.5%, indicating rising margins. HAL offers a solid mix of performance and fair valuation." "BEL, with a market cap of ₹ 2.30 lakh crore, trades at a higher P/E of 46.2. The company is strong on fundamentals, with a ROCE of 34.6% and ROE of 26.4%. It has delivered an impressive 5-year sales growth of 27.5%, but profit growth is slightly lower at 16%, possibly due to pricing or input costs. It remains a solid, stable player," said Gaurav Goel. "Mazagon Dock, the smallest in size at ₹ 1.18 lakh crore, surprises with the best efficiency metrics—ROCE at 44.2% and ROE at 35.2%. Its 5-year profit growth is 29.4%, while sales have grown by 15.5%. However, its P/E of 42.9 suggests that future growth expectations are already priced in," Gaurav Goel said. On her suggestion to investors looking at defence stocks amid rising drone attacks, Seema Srivastava said, "HAL offers substantial growth prospects with its expansive order book and strong financial performance. MDL presents a compelling case with its impressive revenue growth and strategic position in naval defence projects. BEL remains a stable choice due to its diversified portfolio and alignment with the government's defence initiatives. Each company presents unique opportunities, and investors should consider their individual investment goals and risk tolerance when deciding." "If you want a long-term, steady compounder, HAL stands out due to its leadership in aviation, improving profitability, and strong export potential. BEL is a good pick with consistent orders and tech expertise if you're after safe and stable growth with dividends. For short-term momentum plays, especially during war-related news cycles, Mazagon Dock might offer fast gains," Gaurav Goel of Fynocrat Technologies said. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
03-05-2025
- Business
- Economic Times
Aerospace & Defense Sector - A Multi-Decade Opportunity in the Making; HAL, BEL top buys
India's Aerospace & Defense sector is gaining serious altitude—both in strategic importance and investment potential. A recent milestone came with the signing of a ₹63,000 crore agreement with France to acquire 26 Rafale-M fighter jets for the Indian Navy. ADVERTISEMENT More than just a big-ticket purchase, this deal signals a deeper shift in India's defense strategy—strengthening national security while building long-term capabilities at home. The Rafale-M contract includes not just aircraft deliveries (starting from 2029), but also long-term support, training, and crucially, local manufacturing of components. This means Indian companies—big and small—will be involved in making parts for these advanced jets, driving the 'Make in India' mission forward. For retail investors, this matters. India is steadily raising its defense budget—currently around 1.9% of GDP—with a long-term goal to push it closer to 4%. As the government boosts spending on modernizing equipment and investing in new technologies, opportunities for Indian companies in defense manufacturing are set to grow exponentially. Leading public sector players like HAL, BEL, and Mazagon Dock are already handling large orders and expected to get more. At the same time, private players like Tata, Mahindra, Bharat Forge, and smaller firms across the country are joining hands with global giants to build key parts for aircraft, missiles, and naval systems. This is not just good for national security—it's a long-term investment story taking shape. What's more, India's defense exports have surged to a record high of ₹23,622 crore in the FY 2024-25. Private companies are seeing export growth of nearly 100% over the last three years. The government aims to increase annual defense exports to ₹1.5 lakh crore by 2047, with a sharp focus on supplying to friendly nations in Asia, Africa, and Latin America. ADVERTISEMENT Yes, some challenges remain—like engine production and high-end technology development—but these are opportunities in disguise. India plans to ramp up defense R&D spending 10x by 2047, creating even more space for innovation and private participation. India's Aerospace & Defense sector is no longer just about military might—it's becoming a multi-decade industrial and export story. With rising orders, policy push, and deeper global partnerships, the sector offers a unique blend of growth, visibility, and strategic relevance. For long-term retail investors, it's a sunrise opportunity worth keeping on the radar. ADVERTISEMENT Hindustan Aeronautics (HAL) is a market leader in aerospace defense. It boasts a strong order book of ₹1.8t as of Mar'25, along with a promising prospect pipeline of ₹6t, which is likely to be awarded over next few years. ADVERTISEMENT HAL is transitioning from traditional licensed model to indigenized model and is currently working on marque projects such as Tejas Mk1, Tejas Mk1a, Su-30 upgrade, Dornier-25, and LUH, et al. These projects are anticipated to fuel manufacturing revenue growth for catalysts will emerge with aircraft deliveries as GE engine supplies resumes for Tejas Mk1A from FY26, while medium to long term triggers hinge on order finalizations for 97 Tejas Mk1A, Tejas Mk-II, LUH, AMCA and others. We estimate 29%/33%/29% revenue/EBITDA/PAT CAGR over FY25-27. ADVERTISEMENT BHE is well-positioned to benefit from defense electronics opportunities, with key orders expected from QRSAM, MRSAM, next-generation corvettes, and P75/P75I. Bharat Electronics reported stronger-than-expected 3QFY25 results, driven by a robust order book of INR 771b and INR 110b in order inflows during 9MFY25. We forecast a 19% CAGR in revenue over FY24-27, driven by increased market share and indigenized offerings. BHE's strong cash surplus supports future growth, and we reiterate BUY, based on 35x FY27E earnings.(The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd) (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
