HAL Share Price: Hindustan Aeronautics Stock Up 7% After Securing Rs 62,700 Cr Order, UBS Hikes Target By Rs 640
Hindustan Aeronautics Share Price: Shares of Hindustan Aeronautics Limited (HAL) rose 7% to Rs 4,492 after winning a Rs 62,700 crore order from the Ministry of Defence. UBS rated it a "BUY" with hiked price target.
HAL Share Price Target: Shares of Hindustan Aeronautics Limited (HAL) climbed 7 per cent during the intraday to Rs 4,492 apiece on Tuesday. The surge in price came after the defence PSU secured the mega order worth Rs 62,700 crore from the Ministry of Defence. The contract is signed for the supply of 156 Light Combat Helicopters and Prachand to Indian Army and Indian Air Force.
The scrip was trading at Rs 4279.70 apiece with a gain of 2.48 per cent around 11:00 AM. It opened at Rs 4492 apiece against the previous day close at Rs 4176 apiece.
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The stock’s 52-week high and low remained at Rs 5,675 and a low of Rs 3,045.
HAL is among the leading defence manufacturer company with a market cap of Rs 2.85 lakh crore, and is part of BSE 100.
HAL Registers Revenue of Rs 30,400 Crores For FY2024-25
In a business update for FY2024-25, HAL recorded a revenue of Rs 30,400 crores for the financial year ended on March 31, 2025 as against the revenue of Rs 30,381 crores during the previous year.
“This achievement was despite the shortfall in deliveries of LCA and ALH. The deliveries of LCA were affected due to non-availability of engines. The ALH delivery
schedule too got hit due to the accident in January 2025 and subsequent grounding of the Fleet. However, the deliveries of other products and services were accelerated which helped us to maintain the top line", said Dr D K Sunil, CMD, HAL.
During the year 2024-25, HAL received new manufacturing contracts of Rs 1,02,000 crores and ROH contracts of Rs 17,500 crores. Recently, the company signed a contract with MoD for supply of 156 LCH Prachand worth Rs. 62,777 crores. This is the single biggest procurement by MoD from HAL till date.
UBS Gives Buy Rating
UBS in its latest report has raised 12m forward PE from 32x to 35x (still 10% discount to BHE). It has also revised its price target of Rs 5,440 with the “BUY" rating from earlier Rs 4,800 apiece.
“We expect FY26 to be an inflection year for defence ordering and recent acceleration in pace of decision making adds further comfort to our view.
Defence procurement is bottom up and concerns around recent slowdown in government capex impacting defence spend are misplaced, in our view," UBS said in the report.
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