JPMorgan maintained an 'overweight' rating on Hindustan Aeronautics Ltd. with a price target of Rs 5,040 per share, after it beat the brokerage's fourth quarter earnings expectations. This was on the back of "stronger Ebitda margin of 39%".
"HAL's quarterly P&L can be volatile due to the nature of its business, and as a result medium-term order inflow, revenue growth and margin trajectory are more important," JPMorgan said.
Revenue for the public sector company saw a 7.2% decline to Rs 13,700 crore in the January-March period, as against Rs 14,769 crore over the same period last year, according to an exchange filing on Wednesday. But it was still 4% ahead of JPMorgan's estimates of Rs 13,200 crore.
Profit after tax also dropped 7.7% year-on-year to Rs 3,977 crore for the quarter ended March 31, as compared to Rs 4,308.71 crore in the same period last year. Despite the decline it beat the brokerage estimate of Rs 3,100 crore.
HAL's Ebitda was down 10.28% at Rs 5,294.9 crore in the fourth quarter, compared to Rs 5,901.26 crore in the year ago period.
The defence stock pared gains to close 3.43% higher at Rs 4,768 apiece on Wednesday, after advancing as high as 4.08% to reach Rs 4,798 apiece.
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