HAL stock at new high on strong Q4, prospect of bagging defence orders

State-owned aeronautics firm appears to have countercyclical strength, as supply of spares and lack of diversification are potential downside risks.

Hindustan Aeronautics’ (HAL’s) share has gained on strong March quarter (Q4) results. The public sector undertaking (PSU) has also received certification for its light civil passenger transport aircraft the “Hindustan 228-201”, which may help it find new revenue streams.

Net revenue was Rs 11,561 crore in Q4, up 7.7 per cent year-on-year (YoY) and 96 per cent quarter-on-quarter (QoQ). Ebitda (earnings before interest, taxes, depreciation, and amortisation) was Rs 2,500 crore, a dip of 12.5 per cent YoY, but a rise of 75 per cent QoQ. The Ebitda margin was 21.6 per cent. Profit after tax (PAT) was Rs 3,104 crore,