The revenue from operations stood at Rs 5,976 crore, gaining 6% over Rs 5,636 crore posted by the company in the corresponding quarter of the previous financial year.
On a sequential basis, the profit after tax (PAT) was 5% higher over Rs 1,437 crore reported by the state-run defense company in Q1FY25. Meanwhile, revenue was up 37% on a quarter-on-quarter (QoQ) basis as against Rs 4,34,750 reported in the April-June quarter of FY25.
Post the company’s Q2 update, domestic brokerage firm ICICI Securities gave a target price of Rs 5,170 on the stock while maintaining its ‘add’ rating on the same.
“Taking cognisance of the delay in engines, impacting revenue from Tejas Mk-1A, we
have lowered our FY25/26E EBITDA by 16%/4%, respectively. Furthermore, owing tothe uncertainty surrounding earnings, we are raising the discount rate (WACC) by100bps to 11% in our DCF model,” said the domestic brokerage firm in its report.
Delay in execution of existing 83 Tejas Mk-1A orders and in the receipt of further orders for which AoN has been executed along with a margin decline owing to higher raw material prices have been stated as the key risks for the company.
Shares of HAL have been making lower tops and lower bottoms on its daily chart, having taken a fall after hitting an all-time high of Rs 5,674.75 in July this year.
Since then, the stock has corrected by almost 30% since then and by 8.55% in the last one month.
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On the stock’s daily chart, the shares price recently encountered a resistance near the Ichimoku cloud, which led to a correction of around 6-7% in just a week’s time. Now, the stock is below all its significant short, medium and long term EMAs.
“A decisive close below Rs 4,100 could intensify the downside pressure, potentially driving the stock toward the Rs 3,700- Rs 3,850 range. On the upside, any rebound may face significant resistance in the Rs 4,400-4,650 zone, said Ajit Mishra – SVP, Research at Religare Broking.
Mishra advised traders to adjust their positions based on these levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
