He added that HAL‘s order book already exceeds ₹2.5 lakh crore, so incremental additions of ₹10,000-15,000 crore over the near term would not materially move the needle for the stock.
Singh also flagged Bharat Electronics Limited (BEL) as well placed, projecting roughly ₹50,000 crore of fresh orders over the next 12 months, largely from the Quick Reaction Surface-to-Air Missile (QRSAM) programme and submarine-linked business, including orders tied to the P-75I submarine project, which he expects to go to Mazagon Dock.
Singh said HAL stands out as the biggest beneficiary of the government’s recent ₹1.1 lakh crore worth of Acceptance of Necessity (AoN) approvals, most of which are linked to the Air Force and cover advanced light helicopters and weapon integration for the Su-30 fleet. “If you are talking specifically about yesterday’s ₹1.1 lakh crore, then HAL seems to be the biggest beneficiary who is coming out of yesterday’s AoNs, basically,” he said, adding that these approvals will take time to convert into firm orders.
Singh pointed to engine supply as the main constraint in terms of execution. HAL has more than 20 airframes ready at its facilities but has received only 10 engines from GE against a promised 20 for the financial year 2026-27 (FY27).
He noted a recent surprise: GE delivered three engines in August against an expected two, suggesting the delivery pace may be picking up. Singh said at least 10 Tejas deliveries look likely over the next 12 to 15 months.
On reports that Solar Industries may pursue a large overseas acquisition worth $1.5-2 billion, Singh said the news was unconfirmed by management but noted the company has a track record of growing internationally through both organic and acquisition-led routes, calling any confirmed growth a positive.
Turning to metals, Singh said ICICI Securities remains more constructive on flat steel than long steel products, citing rising coking coal costs that support price hikes and the approach of peak seasonal demand. He said flat steel prices held firm through the monsoon season, unlike long steel prices, which are only recovering ground lost during a sharper earlier decline. He did not name specific flat steel stocks.
Singh said the brokerage’s price estimates on aluminium have been unchanged for three to four months, currently pegged at an average of $3,150 per tonne for this year and $2,950 for FY24, after turning positive at the $3,100 LME level. He said ICICI Securities has upgraded most aluminium stocks to ‘Buy’ during the fourth and first quarter results but flagged that an end to the ongoing war could bring more material supply back into the market, a factor worth watching.
For the full interview, watch the accompanying video
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