HAL shares: In the morning session on March 26, the shares of Hindustan Aeronautics Limited (HAL) saw a 2 percent increase following the military PSU’s announcement that it had secured an order worth Rs 194 crore from the government of Guyana.
In addition to the Manufacturer Recommended List of Spares (MRLS), ground handling equipment, and ground support equipment, HAL will supply two Hindustan-228 commuter aircraft.
By 9:20 am, the stock was trading at Rs 3,213 on the NSE, reflecting a 1.2 percent increase compared to the previous close. Over the past year, the counter has experienced a notable surge of 21 percent.
The company recently secured a Rs 2,890-crore order from the defense ministry for the mid-life upgrade (MLU) of 25 Dornier aircraft, in addition to associated equipment for the Indian Navy. The MLU involves the installation of avionics systems and primary role sensors, aimed at enhancing the operational capability of the Dornier aircraft to perform their primary role.
Morgan Stanley holds an “overweight” rating on the company with a target price of Rs 3,129. On January 5, brokerage firm UBS began covering the stock with an initial price of Rs 3,600. According to a report from UBS, they anticipate a depletion in India’s military aircraft strength over the next few years, driven by geopolitics and a heightened need for increased aircraft availability. This is expected to spur accelerated ordering and result in a manufacturing ramp-up at HAL compared to the previous decade.
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In FY23, HAL’s order book reached Rs 80,000 crore, and UBS anticipates it will triple to Rs 2.4 lakh crore by FY26.
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