Citi has maintained its 'BUY' rating on Hindustan Aeronautics Ltd (HAL) with a price target of ₹6,175 per share, implying an upside of around 23% from the previous close, according to latest reports from CNBC TV18. The brokerage noted that HAL shares have started reflecting some of the recent positives following multiple developments that could have near- and medium-term implications for the company. Citi highlighted that improvement in Tejas Mk1A engine supplies, fresh procurement clearances, greater outsourcing to the private sector and progress towards engine development for future helicopter programmes provide incremental comfort on key investment concerns that have weighed on HAL's trading multiples. The brokerage added that while some investors remain concerned about private-sector players gaining market share from HAL, the Street may be underestimating the strengthening execution of HAL's key programmes through private-sector participation.
The Defence Acquisition Council's approval for procurement of 138 Advanced Light Helicopters (ALHs) from HAL is expected to further strengthen the company's order pipeline, as reported by CNBC TV18. According to CLSA, the procurement could add around 13% to HAL's existing $27 billion order backlog, with the company also receiving around $600 million in cash advances. HAL's decadal pipeline remains healthy at $48 billion, with CLSA seeing the start of Mk1A deliveries in the second half of the year and visibility on the GE engine production deal as key catalysts. Shares of Hindustan Aeronautics were trading 0.25% higher at ₹5,043.90, with the stock having gained around 15% so far in 2026. At current valuations of around 31 times its FY28 estimated price-to-earnings ratio, HAL trades at a discount to broader Indian defence peers, making the risk-reward favourable according to Citi.
Of the 30 analysts covering Hindustan Aeronautics, 24 have a 'BUY' rating, two have a 'Hold' rating and four have a 'Sell' rating on the stock, as reported by CNBC TV18. Citi believes HAL remains the cheapest pure-play defence stock despite its sector-leading position, stating the stock deserves to trade at a premium to global aerospace peers given its strong Make-in-India pipeline and market access. The brokerage sees scope for further re-rating once LCA Tejas Mk1A deliveries begin, as several airframes are already structurally completed with revenue recognition to follow post deliveries. HAL and Safran signed a contract with SAFAL joint venture to design, manufacture and support the 3,500-4,000 shp Aravalli engine which will power HAL's proposed 13-tonne Indian Multi-Role Helicopter and its naval variant.
Brokerages have issued mixed recommendations across multiple sectors today, with Elara Capital maintaining a 'BUY' rating on Oil India with a target price of ₹568, according to reports from ET Now. Morgan Stanley retained an 'OVERWEIGHT' stance on Nykaa and raised its target price to ₹356 from ₹321, while Citi reiterated a 'BUY' rating on Hindustan Aeronautics with a target of ₹6,175. The positive sentiment extends to Emkay maintaining a 'BUY' rating on HDFC AMC with a September 2027 target price of ₹3,200, implying a 31% upside, and Jefferies retaining a 'BUY' rating on Finolex Cables with a target price of ₹1,410, indicating a 15% upside. Recent developments show Citi initiating coverage on Meesho with a 'BUY' rating, citing user growth and monetization potential, while Elara Capital sees Mahindra Logistics as a turnaround success story poised for profit-driven compounding.
Indian equities are expected to remain in focus today as these brokerage calls put several stocks across paints, oil and gas, consumer, defence and exchange businesses on investors' radar, with HAL shares showing positive momentum. The stock has responded positively to recent developments, gaining 5% in one week and ending 3.56% higher at ₹5,029.00 apiece on the BSE on Tuesday, as reported by ET Now. At current valuations of ~31x FY28E PE, well below broader Indian defence peers, Citi believes the risk-reward looks favourable with scope for further re-rating once LCA Tejas Mk1A deliveries commence. The brokerage sees scope for re-rating once deliveries commence, as several airframes are already structurally completed with revenue recognition to follow post deliveries.
