Hindustan Aeronautics Limited (HAL) shares climbed 3.45% to ₹4,321.55 on April 1, 2025, supported by strong volumes and continued investor confidence following the company’s biggest-ever defence contract. The surge follows multiple bullish views from top brokerages including UBS, CLSA, and JP Morgan, all of whom highlighted the significance of the recently awarded ₹62,700 crore (US$7.3 billion) order for 156 Light Combat Helicopters (LCH) Prachand.
UBS upgraded its target price to ₹5,440, citing the order as a positive surprise for the Street and a strong signal of momentum in government-led defence procurement. It expects LCA Mark 1A Tejas deliveries to further ramp up HAL’s P&L over the next 3 years, and noted the 65% indigenous content in the LCH as a key boost for India’s defence manufacturing ecosystem.
CLSA maintained its ‘Outperform’ rating with a target of ₹4,662, stating that the order adds 53% to HAL’s order book and enhances decadal growth visibility. CLSA believes HAL deserves to trade at a premium to global aerospace peers due to its strong Make in India (MII) pipeline and established market access.
JP Morgan, with an ‘Overweight’ rating and a target price of ₹4,958, confirmed that the final signing of the MoD contract solidifies HAL’s position. With FY25 order inflows now estimated at ₹1.2 trillion, the company’s order book is at ₹1.9 trillion, translating to a book-to-bill ratio of 5x. Despite a recent rally, JP Morgan sees HAL’s valuations as reasonable at 33x/29x FY26E/FY27E P/E.
The stock traded in a wide range between ₹4,301 and ₹4,444.95 during the day, with over 26 lakh shares exchanged.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
