Jefferies recommends Buy on Hindustan Aeronautics amid defence indigenisation and export focus, sees 12% upside

"HAL is in a sweet spot as the business has high technology entry barriers," the global brokerage said in a note.

Additionally, Jefferies pointed out that relative valuations do not yet reflect the combination of high entry barriers and HAL's near-monopoly business.

As of 11:25 am, the stock was trading 1.7% higher at Rs 5,190 on the BSE. Notably, it has recorded a remarkable surge of over 64% in the past three months and has delivered multibagger returns of 450% in the last two years.

In Q4FY24, the defence PSU firm reported a consolidated net profit of Rs 4,309 crore, which was up 52% over Rs 2,831 crore reported in the corresponding quarter of the last financial year. On a sequential basis, it jumped 241% versus Rs 1,262 crore posted in Q3FY24.

The consolidated revenue from operations in the quarter under review stood at Rs 14,769 crore, which was up 18% from Rs 12,495 crore reported in the year-ago period. On a quarter-on-quarter basis, it was up 143% versus Rs 6,061 crore posted in Q3FY24.

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In technical terms, the relative strength index (RSI) of the stock is currently at 62.9, signalling it's neither trading in the overbought nor the oversold territory. Additionally, the MACD is at 213.7, which is above its center line, but below the signal line.

HAL stock stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)