Industry insiders note that HAL's entrenched position as a Defence Public Sector Undertaking has prompted larger private companies to carefully evaluate their approach
The sharp rise in the share prices pushed the Nifty India Defence index up 1.6% in the afternoon.
The company is expanding manufacturing and repair and overhaul facilities
Motilal Oswal Financial Services initiated a 'Neutral' rating on BDL shares, with a target price of Rs 1,900 apiece. This implies a downside potential of more than 4% from the stock's previous closing price.
HAL share price: The global brokerage maintained an 'Overweight' rating on HAL shares, with a target price of Rs 6,105 apiece.
Defence stocks: Paras Defence shares rallied 9% after turning ex-split.
Bharat Electronics shares touched a fresh 52-week high following new order announcements, while Nifty Defence rose over 1% in intraday trade and has gained more than 3% over the past four sessions.
Defence stocks: 'Further profit-taking appears likely and would be considered healthy, given the significant rally in recent weeks,' says Ajit Mishra from Religare Broking.
Defence stocks: The stocks had recently seen significant profit booking at elevated levels, after an earlier rally triggered by Operation Sindoor and escalations in the Russia-Ukraine war cooled down.
The Tejas Mk1A programme has persistent delays despite the key updates in the contract and the delivery of the first engine.
The AMCA is designed to fill a gap in India's air force, which currently lacks a fifth-generation stealth fighter. The opening up of the field for private companies should lend impetus to the programme and to indigenous capabilities
The Nifty India Defence index has extended gains for a third consecutive session, supported by hopes of stronger orderbooks for defence manufacturers and hopes of sustained demand for the longer term.
The rise in the defence shares also comes amid an overall uptrend in the market, with benchmark indices Sensex and Nifty snapping a three-day losing streak
State-owned HAL's quarterly revenue fell 7.2% to Rs 13,700 crore for the March quarter
Q4 Results 2025 Highlights: Hindustan Aeronautics reports 8% drop in net profit to Rs 3,958 crore; Graphite India's net profit jumps 213% to Rs 50 crore.
The Nifty India Defence index closed with modest gains of about 0.7 percent, but select shares saw strong buying interest. The DGMOs' assurance of armed forces being prepared for future missions 'should the need arise' supported investor sentiment in this space.
The Indian government announced that Pakistan attempted strikes on Indian military installations using drones and missiles overnight. Indian Armed Forces then targeted air defence radars and systems at multiple locations inside Pakistan, and an air defence system positioned in Lahore was successfully neutralised.
Nifty India Defence index slipped over 1 percent, with 10 of its 18 constituents trading in the red on India-Pak de-escalation hopes.
The supply of the engines was supposed to start by 2023, according to the Rs 5,375 crore-deal signed between the two companies in 2021.
JPMorgan analysts remain confident in the structural growth story of defence stocks, emphasising that India's defence capex and domestic manufacturing push are long-term trends
HAL Q3 results: Revenue rises 15% to Rs 6,957 crore
HAL is targetting to deliver 16 LCA Mk1A jets to the Indian Air Force in 2025, with a total of 83 jets by 2029. Project-related delays had already pushed back the first delivery, originally scheduled by March 2024.
Revenue growth slowed in Q2 FY25 amid execution delays
To meet the demand, HAL's new facility at Nashik is expected to help ramp up production capacity to 24 fighter jets annually, from current 16.
India now has 14 "Maharatna" public sector undertakings (PSUs), including prominent names such as BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC, PFC, and the recently upgraded Hindustan Aeronautics Limited (HAL).