State-owned defence major Hindustan Aeronautics Ltd. (HAL) shares rallied nearly 6.5% in early trade on Thursday after Goldman Sachs upgraded the stock to 'Buy' from 'Neutral' and raised its target price to Rs 5,870 from Rs 5,545, citing an improving execution outlook.
The stock rose as much as 6.31% to an intraday high of Rs 4,908 per share, inching closer to its 52-week high of Rs 4,977.60.
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At 10:02 am, HAL was trading 5.78% higher at Rs 4,883.30, outperforming the broader market, with the BSE Sensex up 0.13% at 78,685.
Goldman Sachs said the company's execution challenges are likely to ease soon, with Tejas Mk1A deliveries expected to commence from September 2026 and GE Aerospace's engine supplies likely to become more streamlined during FY27.
The brokerage believes these developments could support better execution and improve earnings visibility.
The rally was also backed by strong trading activity. Around 1.08 lakh shares worth Rs 52.26 crore had changed hands on the BSE, while over 13 lakh shares worth Rs 626.01 crore were traded on the NSE.
Technical View
Ravi Singh, Chief Research Officer at Master Capital Services, said HAL has regained momentum after bouncing sharply from lower levels and is now approaching the crucial Rs 4,900-5,000 resistance zone. He said the rally has been supported by improving volumes and positive sentiment around India's defence sector, driven by higher government spending, strong order inflows and the continued push for indigenous manufacturing.
According to Singh, the stock continues to trade above key support levels, although the Relative Strength Index (RSI) has entered the overbought zone, indicating the possibility of some near-term profit booking. He added that a sustained move above Rs 5,000 could open the door for further upside, while Rs 4,700-4,750 is likely to provide immediate support. He believes the long-term outlook remains constructive, but investors may be better off accumulating the stock on dips rather than chasing the ongoing rally.
HAL is scheduled to announce its Q1 FY27 results on August 12, 2026. The company will hold its analyst presentation on August 28, 2026, at 3:30 pm.
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