Hindustan Aeronautics Ltd. share price target

Hindustan Aeronautics’ (HAL) Q4FY23 EBITDA was 8% ahead of consensus estimates mainly due to better than expected gross margin. Key highlights: 1) EBITDA margin improved QoQ to 26% at the upper end of 25-26% guidance for FY23-25; 2) provisions, as a percentage of revenue during the quarter, continued to remain high at 16.7% vs the historical range of 6-7%.

Hindustan Aeronautics’ (HAL) Q3FY23 performance was subdued owing to lower margins and below-expected revenue growth. Key highlights: 1) EBITDA margin declined to 17.4%, well below the 25-26% guidance for FY23-FY25 mainly due to higher provisions and other expenses.

We attended Hindustan Aeronautics’ (HAL) Q2FY23 earnings call. Key highlights: 1) RoH and spares proportion to stay elevated till FY24E; 2) EBITDA margin is likely to stay at 26-27% owing to higher RoH revenue and cost efficiencies.

Hindustan Aeronautics (HAL) reported strong performance in Q2FY23. Key highlights: 1) EBITDA margin at 31% was ahead of the 25-26% guidance for FY23- FY25.

Hindustan Aeronautics (HAL) highlighted visibility on orders worth ~Rs1,500bn over next three years, with Rs450bn of manufacturing orders expected in FY23- H1FY24.

Hindustan Aeronautics’ (HAL) Q1FY23 result was better than expected with revenue growth of 124.2% YoY and PBT increasing 203.8% YoY.