HAL Share Price Target: Rs 62000 Crore Order From Govt - Buy, Sell Or Hold? Brokerage Report ​

HAL Share Price Target: Shares of Hindustan Aeronautics Limited (HAL) will be in focus after the Maharatna defence PSU has bagged a Rs 62,700 crore mega deal from the Ministry of Defence. The first deal is for the supply of 66 LCHs to the Indian Air Force (IAF) and the second is for the supply of 90 LCHs to the Indian Army.

The supply of these Helicopters shall commence in the third year and will be spread over the next five years.

The day Before this deal, The company signed an amendment to the LCA Mk1 FOC contract dated 23rd December, 2010. The value of the contract has been revised from Rs 5,989.39 crore to Rs 6,542.20 crore, on account of the revision in the delivery schedule.

HAL Order Book

In February, Addressing a press conference on the sidelines of Aero India 2025 in Bengaluru, HAL Chairman and Managing Director D K Sunil said that it has an order book of Rs 1.2 lakh crore and expects to add another Rs 1 lakh crore in the coming year, bringing the total order book to Rs 2.2 lakh crore, which it aims to execute by 2030.

He said the company has received orders worth Rs 55,000 crore in the first nine months of this fiscal year. It is also expecting to finalise orders worth another Rs 1.2 lakh crore in the next five to six months, he added.

According to Brokerage firm, Antique Stock Broking Limited, HAL's order book amounted to Rs 94,000 crore, providing revenue visibility of 3.2 times its FY24 revenue, at the end of FY24.

This is further strengthened by orders for 12 Su-30 MKI aircraft worth Rs 13,500 crore and Rs 26,000 crore for 240 aero engines of the Su-30 MKI aircraft, resulting in a total order backlog of Rs 1,35,000 crore (4.2 times its trailing twelve-month revenue).

Additionally, the healthy order pipeline includes expected orders for Tejas Mk-1A (97 units), ALH (25 units), LUH (12 units), and RD-33 engines (80 units), along with a Rs 18,000 crore order anticipated for repair and overhaul (RoH) services.

In the long term, HAL's order pipeline remains promising, with major projects such as Tejas MK II, AMCA, TEDBF, IMRH, LCH, and ALH expected to generate business opportunities worth Rs 4,50,000 crore over the next decade.

HAL Share Price Target

Brokerage firm Antique Stock Broking Limited has given a ‘BUY’ rating for HAL with a share price target of Rs 4,887 at the current market price of Rs 4,128.

According to Trendlyne data, the average target price of the stock is Rs 4,857, indicating an upside of 16.27% from the current market price. The consensus recommendation from 15 analysts for the stock is a 'Buy'. The Consensus Estimate is the aggregate analyst estimate for listed companies.

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