HAL Shares Extend Gains For Second Day After Q1 Profit Beats Estimates

Shares of Hindustan Aeronautics Ltd. extended gains for the second consecutive trading session on Friday after its first-quarter profit reported on Wednesday beat analysts' estimates.

The company's first-quarter profit surged 76.5% year-on-year to Rs 1,437.1 crore for the quarter ended June 2024, according to an exchange filing. That compares to the consensus estimate of Rs 1,134 crore provided by analysts polled by Bloomberg.

The increase in net profit is on the account of a tax refund of Rs 260.1 crore in the quarter under review. Meanwhile, profit before tax reported a 45.4% increase in the June quarter.

On the expenditure side, the company's depreciation expense declined 26% to Rs 149.2 crore, whereas its employee expenses fell 11.1% to Rs 1,247.6 crore. During the same period, revenue rose 11% to Rs 4,347.5 crore.

The stock rose as much as 2.4% to 4,776.30 apiece, the highest level since Aug. 14. It pared gains to trade 0.82% higher at Rs 4,700 apiece, as of 09:54 a.m. This compares to a 1.08% advance in the NSE Nifty 50 Index.

The stock has risen 141.02% in the last 12 months and 66.96% in year-to-date. Total traded volume so far in the day stood at 0.28 times its 30-day average. The relative strength index was at 42.

Out of 16 analysts tracking the company, 13 maintain a 'buy' rating, one recommends a 'hold,' and two suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.3%.