UBS reiterates its positive stance on Hindustan Aeronautics Limited (HAL) following its recent Su-30MKI aircraft order worth ₹135 billion. This includes a 62.6% indigenization rate, which aligns with the government’s Atmanirbhar Bharat initiative.
Year-to-date, HAL has secured manufacturing orders worth ₹400 billion, representing 40% of its FY25 order intake target of ₹1 trillion. UBS expects defense orders to bunch up in Q4FY25, enhancing the company’s revenue visibility. The brokerage emphasizes HAL as a top pick in the defense sector, given its robust order book and alignment with government priorities.
