Hindustan Aeronautics Ltd (HAL) shares have recently faced selling pressure, with the Maharatna defence public sector undertaking (PSU) stock declining 3.5% in one week, 1% in one month and 3% in three months. However, the stock remained in positive territory over longer periods, gaining 4% in six months and 1% in one year. It also delivered multibagger returns of around 600% over five years.
In the previous trading session, HAL shares fell 0.7% to close at ₹4,809.80. Despite the recent weakness, international brokerage Citi maintained its bullish stance on the defence major, retaining its 'Buy' rating and target price of ₹6,175 per share. The target indicated an upside potential of around 28% from the previous close.
Citi said HAL's Q2 revenue was in line with its estimates, although EBITDA missed expectations due to weaker gross margins. The brokerage added that the company's engines, helicopters and repair work helped offset the delayed Mk1A ramp-up. HAL's inventory also increased 39% year-on-year (YoY), signalling rising preparedness for execution, according to the report.
The Maharatna central public sector enterprise reported its financial results for the July-September quarter during market hours on Thursday.
HAL posted a 16% YoY increase in consolidated profit after tax (PAT) to ₹1,935.64 crore in the second quarter of FY27, compared with ₹1,669.05 crore in the corresponding quarter of the previous financial year.