AMSEC initiates India's HAL with 'reduce'; flags execution risks

Hindustan Aeronautics

05/06/2025 09:56

** Asian Markets Securities starts coverage on Hindustan Aeronautics HIAE.NS with "reduce"; TP 4,750 rupees, 4% discount to last close

** Says optimism on HAL's strong order pipeline already priced into stock but risks of timely execution remain key

** Adds, despite high order inflows, HAL forecast revenue growth of ~8%-10% in FY26

** Forecast dependent on receiving engines from General Electri cGE.N as "so far there's been a significant delay as per original schedule," says AMSEC

** Last few years' revenue CAGR (FY19-25) stood at ~8% despite ~21% growth in order book - AMSEC

** If deliveries are timely and co generates ~27% margins, then revenue CAGR growth could be ~23% over FY25-FY27

** Despite this, HAL up 1.3% higher on Thursday

** Stock rated "buy" on avg, median PT 5,645 rupees - data compiled by LSEG

** Shares up 20% YTD

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))