Multibagger stock Hindustan Aeronautics Limited (HAL) saw its share price gain more than 5% in opening trades on Tuesday, reaching a 52-week high following news of government tenders for Light Combat Helicopters.
HAL’s share price, which has already risen more than 170% in the past year, continues to deliver multibagger returns to investors. The stock opened at Rs 5,460.10, 5% higher than the previous close of Rs 5,200.55, and surged to an all-time high of Rs 5,497.90 during morning trades on the NSE.
In a release to the exchanges, HAL stated, “The Ministry of Defence has issued a Request for Proposal (RFP) for the procurement of 156 Light Combat Helicopters. Of these, 90 are for the Indian Army and 66 for the Indian Air Force.”
Investor confidence in HAL remains strong, bolstered by the government’s focus on the “Make in India” initiative. Analysts have also maintained a positive outlook on the stock. In a recent report, Jefferies India Pvt Ltd noted that sentiment remains upbeat on defense indigenization and export focus.
Analysts highlighted HAL’s robust order book and visible pipeline, suggesting double-digit growth will likely continue over the next three to five years. Jefferies pointed out that significant technology entry barriers in the industry have yet to be fully reflected in the stock’s multiples compared to other industrials, positioning HAL favorably.
Jefferies has set a target price of Rs 5,725 for HAL, indicating further upside potential from its current trading price of around Rs 5,480.
HAL’s order book stands at approximately Rs 94,000 crore, which is 3.2 times the FY24 sales. This solid order book ensures revenue visibility for FY24–27. Additionally, the order pipeline is robust, with analysts estimating it to be between Rs 1.6–1.7 trillion, expected to be awarded over the next 12–24 months.
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