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Shares of Hindustan Aeronautics (HAL) dropped around 5% on Monday, extending losses to 10% over three days after the defence major released its results for the January-March quarter of the financial year 2026, although brokerages remain bullish on the stock.

The company on Thursday reported a consolidated net profit of Rs 4,196 crore for the March-ended quarter, marking a 6% year-on-year (YoY) rise from the Rs 3,977 crore profit reported in the year-ago period. The defence major’s revenue from operations rose 2% YoY to Rs 13,942 crore in Q4FY26, from Rs 13,700 crore reported in the corresponding quarter of the previous financial year.

Hindustan Aeronautics shares had closed marginally lower on Thursday after the results. The stock crashed 5% on Friday and another 5% on Monday to hit an intraday low of Rs 4,175 apiece on NSE in the morning trading hours. The shares of the company have fallen by over 12% in one week and by around 5% in one month. The stock has declined by over 18% in one year.

Jefferies on HAL

Jefferies retained its ‘Buy’ call on the shares of HAL, increasing its target price to Rs 6,300 apiece. This implies an upside potential of nearly 44% from the stock’s previous closing price of Rs 4,386.20 apiece on NSE.
The international brokerage highlighted that the company’s March quarter EBITDA was 10% below its estimates, led by a 9% revenue miss. “However, PAT was 3% above expectations, given better other income. We lower FY27E-28E EPS by 3-8% factoring lower gross margins that were seen in the March quarter. We believe as execution picks up, particularly delivery of Tejas Mk1A aircraft in next 3 months, the stock should move higher,” it said.

Nuvama on HAL

Nuvama Institutional Equities also maintained its ‘Buy’ rating on HAL shares, citing inexpensive valuations. It raised the target price to Rs 5,040 apiece for the stock, implying an upside potential of nearly 15% from the stock’s previous closing price.
The brokerage highlighted that the firm reported a tepid quarter with execution growing merely 1.8% YoY. That said, Nuvama added that the backlog of Rs 2.54 trillion (~7.7x FY26 sales) continues to provide long-term visibility, but execution ramp-up across key platforms (LCA Tejas, ALH, HTT-40) are critical to drive growth momentum.
“Ramp-up in LCA Tejas deliveries in H2FY27, contingent on timely supplies from GE remain key monitorable. Execution across ALH, HTT-40 and Sukhoi programmes, along with conversion of the INR900bn order pipeline, are critical for sustaining growth visibility. Margin sustainability amid improving execution coupled with new order inflows remain key re-rating triggers,” Nuvama further said.

Equirus Securities on HAL

Equirus Securities upgraded its rating on the shares of HAL to ‘Long’ from ‘Short’ following the recent valuation correction, while raising its target price to Rs 5,330 apiece, implying an upside potential of more than 21%. The brokerage highlighted that the firm reported another execution-constrained FY26, with revenue rising a mere 7% as LCA Mk1A deliveries slipped entirely into FY27.

“We cut FY27/FY28 EBITDA estimates by 10%/9% to reflect deferred execution ramp-up, though higher other income largely cushions EPS impact,” it added.

JM Financial on HAL

JM Financial, however, downgraded HAL shares to ‘Add’ from ‘Buy’, while reducing the target price to Rs 4,770 apiece. The domestic brokerage said that HAL reported a weak set of results for Q4 FY26.

Also read: Delhivery shares tumble 5% after Q4 results. Why Nuvama, Elara & other brokerages remain bullish

“We cut our EPS estimates for FY27/28 by ~2% each to account for the delay in deliveries of Tejas Mk1A and lower profitability. We cut our gross margin estimates to account for a weaker gross margin in FY26. This is partially offset by lower provisions. We expect ~15% revenue CAGR driving ~10% EPS CAGR over FY26–28E,” it added.

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

Kaynes Technology India shares declined as much as 4.27% on Monday to hit an intraday low of Rs 3,132, marking the third consecutive session of losses and taking the stock’s three-day decline to nearly 25%, after the company reported a weaker-than-expected Q4 performance last week. Brokerage firm Elara Securities also downgraded its rating on the company to “Accumulate” from “Buy”.

The company reported a consolidated net profit of Rs 91 crore for the March quarter, down 22% year-on-year from Rs 116 crore in the corresponding period last year. Revenue from operations, however, rose 26% YoY to Rs 1,243 crore compared with Rs 984 crore a year earlier.

According to Elara Securities, Kaynes Technology India Ltd missed its revised FY26 guidance on three key parameters. Revenue came in at Rs 36 billion against the revised guidance of Rs 40 billion, while operating cash flow (OCF) remained negative at Rs 6 billion despite expectations of turning positive. Net working capital (NWC) days also stayed elevated at 125 days, missing the company’s sub-100-day target.

For FY27, management has guided for 30% growth, lower than its earlier target of 40–50%, though still ahead of the broader EMS industry growth rate. Elara noted that the company’s expectations of improving OCF and reducing working capital in FY27 could remain challenging.

The brokerage cut its target price on the stock to Rs 3,530 from Rs 5,700, valuing the company at 36x March FY28 estimated earnings, versus 42x earlier. It also reduced FY27E and FY28E EPS estimates by 23% and 33%, respectively, citing lower Q4 sales, weaker guidance visibility, and persistent concerns around cash flow and working capital.

Despite the downgrade, Elara believes the recent weakness was likely due to deferred execution rather than order cancellations. The brokerage highlighted that the upcoming OSAT plant is expected to contribute meaningfully to revenue from FY27 onward, while margins continue to remain among the highest in the industry.
Elara expects earnings CAGR of 40% during FY26–29E, with average RoE and RoCE estimated at 11% and 10%, respectively, during FY27E–29E. The brokerage added that improvement in working capital management and operating cash flow would remain key triggers for any potential rerating in the stock.On the technical front, according to Trendlyne data, the stock’s 14-day RSI stands at 31.9—where a reading below 30 is considered oversold and above 70 indicates overbought conditions. The stock also shows a bearish setup, trading below all 8 out of 8 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)

Muthoot FinCorp has approved plans to raise up to Rs 4,000 crore through an IPO as the gold loan-focused lender looks to capitalise on strong growth in the organised lending market. The proposed IPO will consist of a fresh issue of equity shares with a face value of Rs 10 each, subject to regulatory approvals and market conditions.

CEO Shaji Varghese said the company may dilute at least 10% stake to comply with listing requirements, while any further dilution would depend on valuation and market response. He added that the valuation discovery process has not yet begun as the company is still in the process of appointing investment bankers for the issue.

Varghese said the IPO is aimed at strengthening capital for future expansion rather than providing an exit to promoters or investors. Unlike several recent financial services IPO candidates, Muthoot FinCorp does not have private equity investors. The company remains fully owned by the promoter family.

“The idea is to raise growth capital for expansion,” Varghese said, adding that the lender wants to move ahead with the listing process at the earliest possible opportunity once approvals and appointments are completed.

The proposed public issue comes at a time when gold loan companies are witnessing strong business momentum driven by rising gold prices, stable regulations and increasing formalisation of the lending market. Varghese said organised lenders still account for only around 35-40% of the overall gold loan market, while a large portion continues to remain with local financiers, pawn brokers and jewellers.

That, according to the company, leaves significant room for growth for regulated players.
Apart from its traditional gold loan business, Muthoot FinCorp has also been expanding into MSME lending, loan against property and digital financial services through its Muthoot FinCorp One platform.Alongside the IPO approval, the company’s board also cleared multiple capital-raising measures. It approved a stock split under which every equity share with a face value of Rs 10 will be split into five shares of Rs 2 each. The company said the move is aimed at improving liquidity and increasing retail investor participation.

The board further approved raising up to Rs 4,000 crore through public issuance of non-convertible debentures between July 2026 and June 2027. An additional Rs 4,000 crore can also be raised through private placement of debentures and subordinated debt instruments.

The company also approved the issuance of commercial papers with an overall limit of Rs 30,000 crore, subject to a maximum outstanding limit of Rs 10,000 crore at any point in time.

On the financial front, Muthoot FinCorp reported assets under management of Rs 56,185 crore as of March 2026. Standalone revenue for FY26 stood at Rs 8,364 crore, while profit after tax came in at Rs 1,640 crore.

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The company reported particularly strong growth in the March quarter. Consolidated profit after tax rose 204% year-on-year to Rs 664 crore in Q4 FY26, while quarterly revenue increased 32% to Rs 3,356 crore.

The IPO plan comes amid increasing investor interest in gold loan companies as elevated gold prices improve collateral values and support lending growth across the sector.

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

Thailand’s public debt nears 70% of GDP by 2027. A significant portion of obligations mature that year, forcing reliance on refinancing. The government plans to reallocate unspent funds to support vulnerable groups, promote clean energy, and invest in human capital and AI skills.

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Key Points

• Thailand’s public debt is projected to reach 69.36% of GDP by fiscal 2027, necessitating reliance on refinancing due to a large debt-servicing burden.
• The government plans to reclaim unspent funds (70-100 billion baht) from fiscal 2026 projects and utilize central funds (25 billion baht) to create a fiscal buffer of up to 125 billion baht.

• This buffer will fund support for vulnerable groups, accelerate economic transition towards renewable energy, and invest in human capital and AI-related skills

Projected Debt and Fiscal Constraints

Thailand’s public debt is a significant concern, with projections indicating it will reach 13.79 trillion baht by the end of fiscal 2027. This figure represents 69.36% of the Gross Domestic Product (GDP), positioning it just below the statutory ceiling of 70%. Concurrently, the nation faces a substantial debt-servicing obligation, with approximately 1.45 trillion baht in principal maturing in 2027, escalating to 1.81 trillion baht when interest payments are factored in. To manage this, the government has earmarked only a modest 4% of the total budget (around 151 billion baht) for principal repayment, necessitating a strong reliance on refinancing strategies to manage its financial obligations.

Strategic Financial Management and Borrowing Capacity

The government has a limited borrowing capacity of approximately 4% of GDP, equating to roughly 800 billion baht, under the existing debt ceiling framework, as stated by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas. He further noted that the ceiling, determined by the fiscal policy committee, can be adjusted if circumstances require, referencing precedent from the Covid-19 crisis. Prior to exploring additional borrowing, the administration is prioritizing the efficient reallocation of existing funds. This approach includes plans to reclaim unspent budget allocations from fiscal 2026 projects that fail to secure procurement contracts by April 30th, potentially freeing up 70 billion to 100 billion baht.

Multi-faceted Fiscal Buffer and Economic Transition Initiatives

The reclaimed funds, combined with 25 billion baht in remaining central funds, are expected to establish a fiscal buffer of up to 125 billion baht. This buffer will be strategically deployed through a three-pronged approach. Targeted support will be provided to vulnerable groups, such as low-income households and transport operators, to mitigate the impact of rising energy costs. Secondly, efforts will focus on accelerating Thailand’s economic transition, particularly by reducing dependence on imported fossil fuels through initiatives like promoting rooftop solar, subsidizing electric vehicles, and introducing a Direct PPA system for clean energy trading. Thirdly, a long-term reform agenda will emphasize investments in human capital and infrastructure, with a particular focus on developing AI-related skills to boost workforce productivity.

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Hindustan Zinc shares slipped over 2% to an intraday low of Rs 621.45 on the BSE on Monday, extending losses to more than 7% over the last two trading sessions.

The decline came as silver prices saw a sharp selloff on MCX, falling over Rs 5,000 per kg amid renewed Iran war tensions and reduced expectations of a rate cut this year. Following the government’s import duty hike, MCX silver has now plunged nearly 13%, or around Rs 40,000 per kg, from its peak of Rs 3.04 lakh in just three trading sessions.

A key reason behind the steep correction has been demand destruction at elevated price levels. Unlike gold, silver has a large industrial demand component, with usage spread across sectors such as solar panels, semiconductors, electric vehicles, batteries, electronics, AI infrastructure, and green energy systems.

“At the same time, geopolitical tensions linked to the Iran conflict initially triggered safe-haven buying across precious metals. However, markets later began to focus on the potential impact of prolonged elevated oil prices on global growth momentum. That concern tends to affect industrial metals more heavily than pure defensive assets, causing silver to increasingly trade like an industrial commodity rather than a traditional safe-haven hedge,” the analyst said.

India, which remains the world’s largest silver importer, could also see weaker domestic demand after the sharp increase in import duty. According to Nirpendra Yadav, Senior Commodity Analyst at Bonanza, the jump in duty to 15% materially raises local prices and may hurt jewellery demand while slowing industrial imports.

Hindustan Zinc Q4 snapshot

The company reported a sharp 68% year-on-year rise in consolidated profit after tax for the March quarter at Rs 5,033 crore, compared with Rs 3,003 crore in the corresponding period last year. Revenue from operations climbed 49% to Rs 13,544 crore from Rs 9,087 crore a year earlier.
EBITDA for the quarter reached a record Rs 7,747 crore, registering a 61% increase year-on-year. EBITDA margin expanded to an industry-leading 57%, reflecting strong operational efficiency and improved profitability.
The company also delivered its strongest-ever quarterly operational performance across several key parameters. Mined metal production touched a record 315 kilotonnes, while refined metal output reached an all-time high of 282 kilotonnes. Hindustan Zinc reported its lowest-ever cost of production at $903 per tonne, improving 9% year-on-year. Silver production stood at 176 tonnes during the quarter, up 11% sequentially.
For the full financial year FY26, mined metal production reached a record 1,114 kilotonnes, while refined metal production came in at 1,048 kilotonnes, the second-highest level ever achieved by the company. Zinc production cost declined to a five-year low of $959 per tonne, improving 9% year-on-year.

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