Hindustan Aeronautics Ltd. (HAL) shares surged after the Indian government approved a Rs 62,000 crore deal for 97 Tejas Mark 1A fighter jets. This adds to a previous order of 83 Tejas aircraft, solidifying HAL’s role in India’s defense manufacturing.
Shares of Hindustan Aeronautics Ltd. (HAL) were flying high on Wednesday morning after the government gave its nod to a massive Rs 62,000 crore deal to acquire 97 Tejas Mark 1A fighter jets for the Indian Air Force. The approval, announced on Tuesday, is being seen as a big boost not only for India’s defence capabilities but also for the state-run aerospace giant.
Following the news, HAL’s stock surged more than 3% in early trade, touching Rs 4,605 per share before trimming gains to settle around Rs 4,559, up 2.39% as of 9:30 a.m. This came even as the benchmark NSE Nifty 50 slipped 0.18%, highlighting the stock’s standout performance.
The deal adds to an earlier order of 83 Tejas Mark 1A aircraft worth Rs 48,000 crore, also placed with HAL. With this latest approval, the Bengaluru-headquartered PSU has a strong pipeline of orders, which analysts say cements its role as the backbone of India’s indigenisation push in defence manufacturing. “This clears the runway for HAL’s growth story over the next decade,” said a market strategist tracking defence stocks.
For investors, there was another reason to keep a close eye on HAL — Wednesday was the last session to qualify for its dividend before the stock goes ex-date.
Despite the excitement, HAL’s stock performance has been a mixed bag. Over the past 12 months, it has slipped nearly 4%, though year-to-date, it has bounced back with gains of over 9%. Market indicators show the stock’s relative strength index at 46.94, suggesting neither overbought nor oversold conditions.
Investor sentiment, however, remains largely optimistic. According to Bloomberg data, 18 of 22 analysts covering HAL have a “buy” call, while only two recommend “hold” and two advise “sell.” The average 12-month target price hints at a further upside of nearly 24%.
Analysts believe that with defence spending on the rise and Make in India gathering momentum, HAL is well-positioned to benefit. The Tejas programme, in particular, has become symbolic of India’s efforts to build advanced fighter jets indigenously rather than relying heavily on imports.