UBS on Wednesday has maintained its 'neutral' rating on Hindustan Aeronautics Ltd., with target price of Rs 4,900 after the Centre cleared a deal to buy 97 Tejas MK1A. On Tuesday, the Union government cleared a Rs 62,000-crore deal to buy 97 Light Combat Aircraft Mark 1A fighter jets for the Air Force, defence sources told ANI.
According to the ANI report, the final approval for the acquisition will pave the way for Hindustan Aeronautics Ltd. to produce the aircraft. This will be in addition to the 83 LCA Mark 1A fighter jets ordered by the government earlier. The first order was worth Rs 48,000 crore.
UBS noted that, this is the second MK1A order for HAL, with 180 MK1A in the order book for HAL. Delivery for MK1A is yet to commence, it added. The brokerage noted that, with F404 engine issue now behind, it is expected that the delivery will commence with 6 MK1A in FY26E.
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