PSU defense stock: HAL -shares recover 37%within seven weeks. What is the way forward? | Einsmark news

PSU defense stock: Hindustan Aeronautics share price has risen by 37% over the past seven weeks. The PSU defense stock faced challenges from June 2024 to February 2025, but began recovering in March 2025. Brokerage firm JM Financial expects Hal shares to be better than the Nifty 50. In its report, the domestic broker noted that Hal shares benefit in the second quarter of the calendar year. Over the past five years, it has ended positively for the second quarter, which produced an average return of about 34%. According to the JM Financial Report, the share performed the Nifty 50 with about 2%slightly better. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, explained that Hal share price, after a sharp redress of 45.79% in just 35 weeks after a buy, now shows signs of power with a higher layer on weekly charts. Hal share price also withdrew 50% of the decline at £ 4.313. Immediate resistance lies in the £ 4,300–4,320 zone; Above, £ 4.444 (swing high) will be the next obstacle. If Hal share price maintains more than £ 4,320, the logical upward target is £ 4,720,8, which is an indication of the potential for a strong setback. On Thursday’s session, the Hal share price was almost 1% on the BSE, the PSU defense stock touched an intraday high of £ 4,242,10, and an £ 4.195 -year -old Intraday Low Point on the BSE. On a fundamental level, Nirmal Bang retained a ‘buy’ recommendation with a target price of £ 4.851, which appreciates the stock at 24 times the estimated EPS for March 2027, strengthened by a strong order book. The company’s order book has shown significant improvement over the past year, during which the company expanded its capabilities by adding new production lines for the LCA and HTT-40, in addition to raising the aero engine capacity to Karlaput. The current order book is at £ 1,84,000 crores, compared to the initial order book of £ 94.129 crores, after the liquidation in the current year. In addition, the broker noted that the sector sees a positive movement driven by several factors: a stronger focus on indigenous programs and “Atmanirbhar Bharat” programs, increased assignments for the defense budget, rising geopolitical tension, a growing list of indigenous efforts, defense defense. Q4FY25 update According to the submission of the company, half an income of £ 30,400 crores (for the time being and uneducated) for the financial year ending March 31, 2025, compared to revenue of Rs. 30.381 crores in the previous year. In the year 2024-25, half new manufacturing contracts of £ 1.02,000 crores and ROH contracts amounted to £ 17,500 crores. Recently, the company has completed a contract with the Ministry of Defense for the provision of 156 Lch Prachand helicopters, worth £ 62,777. These are the largest single purchases by the Ministry of Defense from HIM to date. “With the stabilization of the supply chain, new orders in hands and improving the capabilities, the company is ready for more robust physical and financial performance in the FY 2025-26,” the company said in an exchange filing. Disclaimer: The views and recommendations above are those of individual analysts, experts and brokerage companies, not of currency. We advise investors to check with certified experts before making any investment decision. First published: 17 Apr 2025, 12:13 pm Ist