HAL’s Stock Price will Continue to be Monitored on Tuesday: Here’s Why

On Friday, HAL stock increased by about 1% to settle at ₹4,179.90 on the NSE. Over the last five years, the multi-bagger stock has risen by 1,491.86%, providing substantial profits.

Following the company’s announcement on March 28 that it had signed two contracts with the Ministry of Defence, the share price of Hindustan Aeronautics Limited (HAL) will continue to be monitored on Tuesday.

The National Shares Exchange (NSE) saw a roughly 1% increase in HAL shares on Friday, closing at ₹4,179.90. Over the last five years, the multi-bagger stock has risen by 1,491.86%, providing substantial profits.

With a 35% increase, the stock was the best-performing item on the Nifty PSE index in March. Its monthly return is most significant in the last five years.

HAL:

On Friday, the government and Hindustan Aeronautics Limited (HAL) inked two contracts totaling ₹62,700 crore to purchase 156 Prachand Light Combat Helicopters (LCH). According to the Defence, the Indian Air Force (IAF) will receive 66 LCHs from the first contract, while the Indian Army will receive 90 LCHs from the second.

These helicopters will start to be delivered in the third year and continue for the next five years. With the ability to operate at altitudes beyond 5,000 meters, the LCH is India’s first combat helicopter built and produced domestically. With aims to reach over 65% indigenous content throughout the procurement process, this helicopter has several components designed and built in India.

The project would involve over 250 local companies, primarily MSMEs, and is expected to create over 8,500 direct and indirect employment. To provide Indian Air Force (IAF) and Indian Navy pilots with air-to-air refueling training, the ministry has also entered into a wet leasing agreement with Metrea Management for a Flight Refueling Aircraft (FRA).

Within six months, Metrea will provide the KC-135 FRA, the IAF’s first-ever wet leasing of such an aircraft. With these three contracts signed, the Ministry of Defence completed 193 contracts in 2024–25, surpassing the total value of ₹2,09,050 crore, the most significant amount ever recorded and almost doubling the previous top. Of these, 177 contracts (92%) totaling ₹1,68,922 crore (81% of the total contract value) have been given to the domestic sector.

After a two-year delay, the business said on Wednesday that GE Aerospace delivered the first 99 GE-404 engines for the LCA Mark 1A. The first aircraft might be operational by April.

Axis Securities, a brokerage firm, has recommended HAL as its top choice among DPSUs and raised the stock from “add” to “Purchase.”

(Delivering for India Today and Into the Future | GE Aerospace News) HAL for the Tejas Mk 1A light combatant. This development allays execution-related worries. Given that the order book (OB) is valued at more than INR 1.3 trillion, we anticipate revenue growth of 25–28% through FY27E. Additional orders for 156 (numbers) LCH Prachand and 97 (numbers) Tejas Mk 1A are in the works. We pulled down our WACC to 11% (formerly 12%) due to fewer execution issues and lower risk on our earnings expectations, which resulted in a revised TP of INR 5,000 (previously INR 4,065). We propose HAL as our top choice among DPSUs and upgrade it to Purchase (from Add),” the brokerage company stated in a note.