HAL share price jumps over 7% after ₹62,700-crore from Ministry of Defence. Do you own?

Hindustan Aeronautics Ltd (HAL) share price rallied over 7% in early trade on Tuesday after the company received fresh orders worth ₹62,700 crore from the Ministry of Defence. The PSU defence stock, HAL shares jumped as much as 7.58% to ₹4,492.80 apiece on the BSE.

The state-run defence company Hindustan Aeronautics Ltd on March 28 announced that it signed two contracts with Ministry of Defence for supply of Light Combat Helicopters to Indian Army.

“... we wish to inform that, the Ministry of Defence signed two contracts with the Company today for supply of 156 Light Combat Helicopters (LCH), Prachand to Indian Army (90 Nos) and Indian Air Force (66 Nos) along with training and other associated equipment worth around Rs. 62,700 Crore excluding taxes,” HAL said.

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

In a separate regulatory filing, HAL said it recorded a revenue of ₹30,400 crore (provisional and unaudited) for the financial year ended on March 31, 2025 as against the revenue of ₹30,381 crore during the previous year.

“This achievement was despite the shortfall in deliveries of LCA and ALH. The deliveries of LCA were affected due to non-availability of engines. The ALH delivery schedule too got hit due to the accident in January 2025 and subsequent grounding of the Fleet. However, the deliveries of other products and services were accelerated which helped us to maintain the top line,” said Dr D K Sunil, CMD, HAL.

HAL’s order book stood at ₹1,84,000 crore as against the opening order book position of ₹94,129 crores and after adjusting current year liquidation.

During the year 2024-25, HAL received new manufacturing contracts of ₹1,02,000 crore and ROH contracts of ₹17,500 crore.

Goldman Sachs Buys Stake in Hindustan Aeronautics Ltd

Goldman Sachs bought shares of defence PSU Hindustan Aeronautics Ltd worth over ₹161 crore through open market transactions on Friday, March 28. According to BSE block deal data, Goldman Sachs, through its affiliate -- Goldman Sachs (Singapore) -- purchased 3,85,774 HAL shares at ₹4,176.25 apiece.

Meanwhile, Hong Kong-based asset management firm Kadensa Capital, through its arm -- Kadensa Master Fund -- sold the same number of shares in HAL at the same price.

Should you buy HAL shares?

According to global brokerage firm UBS, the awarding of order for 156 Prachand was a positive surprise.

“Commencement of engines delivery by GE with accelerated delivery schedule should address issues around execution and recent fast tracking of award for LCH Prachand should address concerns around slowing defence spend. While we don’t expect procurement of fifth generation fighter aircraft via FMS (foreign military sales) to have material impact on HAL’s TAM (in our view maximum impact could be 4-5%),” UBS said in a note.

UBS has a ‘Buy’ rating on HAL shares. It raised its 12-month fwd PE from 32x to 35x (still 10% discount to BHEL) and also raised HAL share price target to ₹5,440 apiece from ₹4,800 earlier led by improved visibility on order book and P&L execution.

Hindustan Aeronautics shares remain UBS’ preferred pick in broader industrial coverage.

At 9:20 AM, HAL share price were trading 5.82% higher at ₹4,419.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.