Hindustan Aeronautics Ltd (HAL) 's growth is going to get a big boost, as the long-pending GE-F404 engine delivery problem has now been resolved. The delivery of these engines is expected to start from next month i.e. April 2025. With this, HAL can deliver 10-11 Tejas fighter aircraft in the financial year 2026. The company will have a potential earning of ₹3,000-3,500 crore.
HAL's production capacity is also being ramped up to produce 24 Tejas Mk-1A jets annually (16 in Bengaluru, 8 in Nashik). The company has set a target of delivering 83 Tejas Mk-1As by 2029. On March 26, GE Aerospace confirmed the delivery of the first F404-IN20 engine to HAL, part of a total delivery of 99 engines.
Order Book and Defense Deals
HAL has a strong order book of ₹2.6 lakh crore. Two big defence contracts worth ₹1.3 lakh crore may be added to this in the next 3-6 months. These include orders for 97 Tejas Mk-1A and 156 LCH Prachand helicopters. Apart from this, more contracts worth ₹35,000 crore are expected. This includes Su-30MKI upgrade, Indian Multi-Role Helicopter (IMRH) development and repair and overhaul (ROH).
Brokerage Outlook and Valuation
Brokerage firm Elara Capital has taken a bullish stance on HAL and has given a target price of ₹5,160. This is 25% higher than the current price. At the same time, Morgan Stanley has included HAL in its Asia Pacific ex-Japan and Global Emerging Markets Focus List. It has given a target of ₹5,292, which shows a 32% upside.
Condition of HAL shares
HAL shares closed at ₹ 4,127.90 on Wednesday (March 26), up 2.91%. HAL shares have gained 27.31% in the last one month. However, the stock has given a negative return of 5.56% in the last 6 months. On the other hand, it has given a return of 25.07% in the last one year. Its 52-week high is ₹ 5,675.00 and low is ₹ 3,045.95.
