India’s aerospace and defense sector was valued at USD 27.1 billion in 2024 and is projected to reach USD 54.4 billion by 2033, growing at a CAGR of nearly 7%. Driven by modernization, indigenous manufacturing, and rising exports, India is emerging as a global hub for advanced aerospace technologies and defense production
With a market capitalization of Rs 3.38 lakh crore, the shares of Hindustan Aeronautics Ltd were trading at Rs 5,061.50 per share, increasing around 1.22 percent as compared to the previous closing price of Rs 5,000.55 apiece.
Brokerage Recommendations
Jefferies, one of the well-known brokerages globally, has maintained a ‘Buy’ call on this defence stock with a target price of Rs 6,475 apiece, indicating a potential upside of 28 percent from Thursday’s price of Rs 5,032.90 per share.
As per brokerage, HAL’s results exceeded expectations by 4%, with margins rising sharply by 765 bps to 38.7%. Management sees sustainable margins at 30–31% through ongoing cost optimisation. Jefferies also expects strong service income and steady aircraft deliveries to fuel double-digit revenue growth over the next 3–5 years.
Also read: Solar stock skyrockets 12% after reporting 253% net profit growth in Q4
Operational highlights
Hindustan Aeronautics Ltd (HAL) plans a capital expenditure of ₹3,000 crore in FY26, aiming to boost production and invest in new defence projects. To partially fund this, HAL is exploring monetisation of its non-core land assets in Delhi as part of its broader investment strategy.
Further, the capex plan for the five-year period from FY25 to FY29 is estimated at Rs 14,000–15,000 crore, a senior HAL executive told Moneycontrol. Capital expenditure is broadly the purchase or creation of long-term assets such as new equipment.
Moreover, HAL plans to invest Rs 600 crore to build a 20,000-tonne isothermal press, a 50,000-tonne hydraulic press for engine and aerostructure forgings, and a carbon fibre facility. These upgrades aim to enhance HAL’s capabilities in producing high-value aerospace components and advanced materials.
Additionally, the company is investing in R&D to boost indigenous innovation, allocating Rs 4,000 crore for the IMRH programme and Rs 2,000 crore for the Utility Helicopter-Marine variant. Deliveries of HTT-40, civil ALH, and LCH are set for FY26; naval helicopters by FY27.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
