Hindustan Aeronautics shares rise 5% to hit new highs; mcap tops Rs 2 lakh crore

Shares of Hindustan Aeronautics Ltd (HAL) extended its gains on Friday to scale new highs as the market capitalization of state run defence players topped Rs 2 lakh crore mark during the session. The multibagger stock became the seventh company from the government's offering to claim this fear on Dalal Street.

Hindustan Aeronautics shares surged more than 4.56 per cent during the trading session on Friday to rise to Rs 3,038.60 its new 52-week high. The total market capitalization of the company hit Rs 2.03 lakh crore mark at its peak. The stock had previously settled at Rs 2,905.85 during the previous trading session on Thursday.

Shares of Hindustan Aeronautics have surged more than 680 per cent in the last five years, while the stock is up 145 per cent in the last one year. Even in the last six months, the stock has rallied about 65 per cent, and it is up 20 per cent in the last month period.

Headquartered in Bangalore, Hindustan Aeronautics is an Indian public sector aerospace and defence company. HAL was established in 1940 and is an undertaking of the Ministry of Defence. It is one of the oldest and largest aerospace and defence manufacturers in the world.

Hindustan Aeronautics is currently involved in designing and manufacturing of fighter jets, helicopters, jet engine and marine gas turbine engine, avionics, software development, spares supply, overhauling and upgrading of Indian military aircraft.

Recently, Antique Stock Broking raised HAL's target price to Rs 3,615 with a 'buy' rating, expecting revenue and earnings to grow at a CAGR of 17 per cent and 15 per cent, respectively. "Significant change is led by the prospect of large ticket orders for Hindustan Aeronautics (HAL) in FY26," it said.

Hindustan Aeronautics is the seventh PSU firm to have a total market capitalization of more than Rs 2 lakh crore. HAL follows other state-run players including Stats Bank of India (Rs 5.80 lakh crore), Life Insurance Corporation (Rs 5.40 lakh crore), NTPC (Rs 3.10 lakh crore), ONGC (Rs 2.70 lakh crore), Coal India (Rs 2.39 lakh crore) and Power Grid Corporation of India (2.24 lakh crore).

Hindustan Aeronautics will be the primary beneficiary of contracts for Tejas LCA MK1a, LCH Prachand and Sukhoi-30 upgradation. As per the sources, these three proposals are worth Rs 1.8 lakh crore, said ICICIDirect Research in its recent report.

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