HAL Gets 'Buy' Upgrade From ICICI Securities; Top Pick Among DPSUs — Here's Why

ICICI Securities upgrades HAL to Buy (from Add) and recommend it as its top pick among defence public sector undertakings.

ICICI Securities

27 Mar 2025, 11:05 AM IST i

<div class="paragraphs"><p>GE Aerospace has delivered the first of 99 (nos.) F404-IN20 engines to HAL for Tejas Mk 1A which is a vital development that allays execution risk concerns, says the brokerage.</p><p></p><p>(Photo Source: Tejas fighter jet by Hindustan Aeronautics Ltd. at the Aero India 2023 Expo at Air Force Station Yelahanka, Bengaluru /Vijay Sartape NDTV Profit)</p></div>

GE Aerospace has delivered the first of 99 (nos.) F404-IN20 engines to HAL for Tejas Mk 1A which is a vital development that allays execution risk concerns, says the brokerage.

(Photo Source: Tejas fighter jet by Hindustan Aeronautics Ltd. at the Aero India 2023 Expo at Air Force Station Yelahanka, Bengaluru /Vijay Sartape NDTV Profit)

ICICI Securities believes that the delivery of the first F-404 engine by GE represents a significant step towards assuaging the execution concerns for HAL. Besides, it believes that HAL is set for the long haul as manufacturing gathers steam with possible additional orders for LCA Tejas Mk-1A in the near term. Besides, the progress on development of Tejas Mk-II and AMCA is on.