Brokerage firm CLSA has an ‘Outperform’ rating on the stock with a price target of ₹5,481 per share. The target implies an upside potential of around 13% from Monday’s closing price.
The DAC’s approval for the procurement of 138 ALHs from HAL is expected to strengthen the company’s order pipeline.
According to CLSA, the procurement could add around 13% to HAL’s existing $27 billion order backlog, while the company could also receive around $600 million in cash advances.
CLSA said HAL’s decadal pipeline remains healthy at $48 billion. It sees the start of Mk-1A deliveries in the second half of the year and visibility on the GE engine production deal as key catalysts for the stock.
The brokerage also said HAL remains the cheapest pure-play defence stock despite its sector-leading position. It believes the stock deserves to trade at a premium to global aerospace peers, given its strong Make-in-India pipeline and market access.
Meanwhile, Motilal Oswal has also retained a ‘Buy’ rating on HAL, following the DAC’s recent approvals. The brokerage has a price target of ₹5,800 per share.
The DAC on Monday, September 7, approved Acceptance of Necessity (AoNs) for various acquisition proposals worth around ₹1.1 lakh crore for the Indian Army, Navy and Air Force.
Of the 30 analysts covering Hindustan Aeronautics, 24 have a ‘Buy’ rating, two have a ‘Hold’ rating and four have a ‘Sell’ rating on the stock.
Shares of Hindustan Aeronautics ended 0.08% lower at ₹4,852 on Monday. The stock has gained around 10% so far in 2026.
