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 3.35 lakh crore, the shares of Hindustan Aeronautics Ltd were trading at Rs 5,018.40 per share, increasing around 1.18 percent as compared to the previous closing price of Rs 4,959.75 per share.
Brokerage Recommendations
Jefferies, one of the well-known brokerages globally, has given a ‘Buy’ call on this defence stock with a bull case target price of Rs 7,500 apiece, indicating a potential upside of 50 percent from Thursday’s price of Rs 5,018.40 per share.
Jefferies estimates a visible order pipeline of Rs 1.7 lakh crore for HAL, ensuring medium-term revenue visibility. In the bull case, faster clearance of defence proposals, increased tender activity, and acceleration of the Make in India initiative with a greater share of domestic orders could significantly boost HAL’s growth prospects.
Operational highlights
HAL’s capex plan for the five years from FY25 to FY29 is estimated at Rs 14,000–15,000 crore, a senior HAL executive told. 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.
Furthermore, 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.
Additionally, Hindustan Aeronautics Ltd (HAL) plans a capital expenditure of Rs 3,000 crore in FY26, aiming to boost production and invest in new defence projects. To partially fund this, HAL is exploring the monetisation of its non-core land assets in Delhi as part of its broader investment strategy.
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. Trade Brains Technologies Private Limited 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.
