HAL Share Price Surges After Impressive Q1 Results: What Investors Are Saying Today
On August 14, 2024, Hindustan Aeronautics Limited (HAL) reported a remarkable 76.53% increase in its net profit for the June 2024 quarter. The profit reached ₹1,437.14 crore, a significant jump from ₹814.09 crore in the same quarter last year. This positive news has influenced HAL’s share price, which saw a slight increase of 0.14%, trading at ₹4,704.95 after the announcement.
Investors are reacting positively to these results, which exceeded market expectations. The revenue from operations also rose by 11.04%, totaling ₹4,347.50 crore compared to ₹3,915.35 crore in the previous year. This growth is attributed to the strong order backlog that HAL currently holds, amounting to ₹94,000 crore. Analysts believe that HAL is well-positioned for future growth, with projections indicating potential contracts worth ₹1.6 to ₹1.7 lakh crore over the next few years.
Despite the strong annual performance, analysts caution that the quarterly results may not reflect the overall trend. The first quarter is traditionally the weakest for HAL, with most sales occurring in the fourth quarter. For instance, some analysts predict a sharp decline in revenue and profit on a quarter-on-quarter basis. Nirmal Bang Institutional Equities estimates that HAL’s revenue could drop by 68% sequentially, while net profit might fall by 74%.
Market analysts have mixed opinions on HAL’s stock. While the quarterly results are encouraging, the overall market sentiment remains cautious due to the expected fluctuations in revenue in the upcoming quarters. Sharekhan, for example, anticipates that HAL’s net profit could drop by 80% on a sequential basis, forecasting it to be around ₹917 crore for Q1 FY25.
Investors are also keenly watching the upcoming ex-dividend date, set for August 21, where HAL will distribute a final dividend of ₹13 per share. This could further influence investor sentiment and stock performance in the short term.
