This article was written by

Follow

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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.

Live Events

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)

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.

Live Events

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)

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.

Live Events

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.

Also read: Bharti Airtel claims No.2 spot: How it beat HDFC Bank to become India’s second most valuable company

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)