Fri Apr 11 04:20:00 UTC 2025: ## Hindustan Aeronautics (HAL) Stock Receives ‘Buy’ Rating with ₹5100 Target Price

**Mumbai, India** – Motilal Oswal Financial Services has initiated coverage on Hindustan Aeronautics Limited (HAL) stock with a “buy” rating and a target price of ₹5100, representing a potential upside of 27% from its last closing price. The brokerage firm cites HAL’s robust order book, strong growth prospects, and the Indian Air Force’s commitment to modernization as key factors supporting their bullish outlook.

HAL, a major player in the defence and aerospace sector, currently boasts an order book of ₹1.8 lakh crore (₹180 billion) as of March 31, 2025, with a further ₹6 lakh crore (₹600 billion) pipeline for the coming years. The company is transitioning from a licensing model to a focus on indigenous technology, a move expected to fuel significant growth.

Key projects driving this growth include the Tejas Mk1, Tejas Mk1a, Su-30, Dornier-25, and LUH (Light Utility Helicopter) programs. Recent deliveries of F404-IN20 engines from GE Aerospace are also expected to boost medium-term growth. Future orders for 97 Tejas-Mk1A, Tejas MK-II, and the Advanced Medium Combat Aircraft (AMCA) will further support this positive trajectory.

The Indian Air Force’s commitment to upgrading its fleet with a focus on indigenous technology and “Make in India” initiatives is a significant tailwind for HAL. The company’s quick delivery of Tejas Mk1A, facilitated by capacity expansion at its Nasik facility and outsourcing of components to private players, strengthens its market position.

Motilal Oswal projects a 29% CAGR revenue growth for HAL between FY25 and FY27. The brokerage’s ₹5100 target price is based on a 32x P/E multiple on FY27 estimated earnings and an average DCF valuation. While the stock recently recovered from a low of ₹3046 on March 3rd to ₹4031, it remains below its July 2024 high of ₹5675.

**Disclaimer:** This news article summarizes the recommendations of a brokerage house. It does not constitute investment advice. Consult with a financial advisor before making any investment decisions.

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