AMSEC initiates India's HAL with 'reduce'; flags execution risks

Asian Markets Securities starts coverage on Hindustan Aeronautics HIAE.NS with "reduce"; TP 4,750 rupees, 4% discount to last close

Says optimism on HAL's strong order pipeline already priced into stock but risks of timely execution remain key

Adds, despite high order inflows, HAL forecast revenue growth of ~8%-10% in FY26

Forecast dependent on receiving engines from General Electri cGE.N as "so far there's been a significant delay as per original schedule," says AMSEC

Last few years' revenue CAGR (FY19-25) stood at ~8% despite ~21% growth in order book - AMSEC

If deliveries are timely and co generates ~27% margins, then revenue CAGR growth could be ~23% over FY25-FY27

Despite this, HAL up 1.3% higher on Thursday

Stock rated "buy" on avg, median PT 5,645 rupees - data compiled by LSEG

Shares up 20% YTD