HAL shares have surged 16% following the latest brokerage recommendations, with the stock closing at ₹4,333.2 as of latest market data. The stock touched a day high of ₹4,378 and low of ₹4,285.2, representing a significant recovery from its 52-week low of ₹3,479.1. With a market capitalisation of ₹2,89,345.50 crore, HAL's trading volume reached 14.39 lakh shares during the session, indicating strong investor interest in the defence stock.
Brokerage house Nuvama has maintained a positive stance on select defence companies and believes a few stocks could offer around 15% upside potential from current levels. According to the brokerage report, companies with strong order books, improving execution visibility and expanding margins may continue to remain in focus over the next few years. Among the brokerage's preferred picks are Solar Industries India, Hindustan Aeronautics and Data Patterns (India).
HAL's order book remains robust at ₹2.54 lakh crore as of March 2026, which is nearly eight times its FY26 revenue. The company has declared a dividend of ₹35.00 per share for February 2026, translating to a dividend yield of 1.71%. Revenue has shown consistent growth with a 27.2% quarterly increase over the last four quarters, rising from ₹5.57K crore to ₹15.10K crore. Net profit has also demonstrated strong momentum with a 27.7% quarterly increase, climbing from ₹1.38K crore to ₹4.19K crore. Major orders include 156 Light Combat Helicopters (LCH Prachand) worth ₹62,777 crore and 240 Sukhoi-30 aircraft engines worth ₹25,500 crore.
Nuvama has maintained a 'Buy' rating on Solar Industries India and raised its target price to ₹20,000 from ₹15,800 earlier. The revised target implies an upside potential of nearly 15% from the current market price. The brokerage said, "Maintain 'Buy' on Solar Industries as our sector top pick, building in FY26–28 revenue/PAT of 35%/39% annually on a compounded basis with 30%+ ROE." As per the report, the company delivered a strong March quarter performance helped by higher defence execution and better operating margins. Revenue during the quarter rose over 40% year-on-year to around ₹3,050 crore, while defence revenue jumped sharply by more than 130% to nearly ₹1,000 crore.
Nuvama has maintained a 'Buy' rating on Data Patterns (India) and raised the target price to ₹4,500 from ₹3,570 earlier. The revised target implies an upside potential of around 15%. According to the report, the company reported healthy profitability during the March quarter despite a decline in quarterly revenue due to a high base effect. Data Patterns reported FY26 revenue of around ₹920 crore, up more than 30% year-on-year, while profit after tax for the full year increased nearly 24%. The brokerage highlighted that the company's order inflows surged significantly during FY26, while potential order visibility currently stands at over ₹2,060 crore.
