Hindustan Aeronautics Ltd.'s share price jumped over 6% during early trading on Tuesday after it secured a deal to supply combat helicopters.
The government signed two contracts worth Rs 62,700 crore with HAL last week for 156 light combat helicopters Prachand for the armed forces. Preceding this, the company received the first of the nearly hundred F404-IN20 engines from US defence major GE Aerospace for the Tejas Light Combat Aircraft Mk-1A variant after years of delay.
The defence equipment maker has also received fresh bullish calls from analysts.
UBS raised its revenue and earnings projection by 3% for FY26 and FY27. It also raised Tejas execution estimates from four aircraft in FY26 to seven and 14 in FY27 from six earlier.
Analysts at JPMorgan said the estimated order book in the financial year ending March 31, 2025, stood at Rs 1.9 lakh crore. They see the HAL stock trading at a "reasonable valuation" of 33 times price-to-earnings.
HAL Stock Up
HAL share price advanced 6.3% to Rs 4,439.95 apiece after market open, the highest since mid-December. The benchmark Nifty 50 was down 0.3%.
The stock has risen 25% in the last 12 months but has been flat on a year-to-date basis. The relative strength index stood at 75.
Sixteen out of the 17 analysts tracking Hindustan Aeronautics have a 'buy' rating on the stock, and one suggests a 'sell', according to Bloomberg data. The average of the 12-month analyst price target implies a potential upside of 20%.
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