Kotak Securities upgrades HAL and Honasa Consumer stock recommendations

Shrikant Chouhan, head of equity research at Kotak Securities, issued a bullish outlook on Hindustan Aeronautics Ltd (HAL), maintaining an Add rating and assigning a DCF-derived fair value of ₹5,305 per share. He pointed to HAL's order book, now about ₹2.55 lakh crore, and a pipeline of ₹4.6 lakh crore that includes programmes such as Tejas Mk2, Light Utility Helicopter and Indian Multi-Role Helicopter, which should drive a 16% compound annual revenue growth over five years.

The analyst also highlighted a 12% Q1FY27 profit beat and an expected EBITDA margin of 26.1% in Q2FY27. In a separate note, Kotak upgraded Honasa Consumer, the parent of Mamaearth and other brands, to Buy with a revised target price of ₹580, up from ₹455. The company posted 26% YoY organic revenue growth and a 485-basis-point rise in EBITDA margin to 13.1%, driven by strong performance of non-Mamaearth brands and a recent acquisition of Fluence Pharma. Chouhan emphasized Honasa's ability to scale new brands, expand omnichannel distribution, and maintain disciplined finances, projecting continued revenue CAGR of 18% through FY31.