Hindustan Aeronautics shares rise 4%; check out reason and recommendation

Hindustan Aeronautics (HAL) share price rose 3.5 per cent on Wednesday, logging an intra-day high at ₹4,611.6 per share on BSE; here's why

Hindustan Aeronautics (HAL) shares rose 3.5 per cent on Wednesday, August 20, 2025, logging an intra-day high at ₹4,611.6 per share on BSE. 

 

At 9:18 AM, HAL share price was trading 2.42 per cent higher at ₹4560.6 per share. In comparison, the Sensex was 0.11 per cent lower at 81,556.48.  READ STOCK MARKET LATEST UPDATEST LIVE

Why were HAL shares in demand in a weak market? 

HAL's stock rose after the Indian government approved a ₹62,000 crore deal to procure 97 additional indigenous Light Combat Aircraft (LCA) Tejas Mk1A fighter jets for the Indian Air Force (IAF), as reported. The Cabinet Committee on Security (CCS), headed by Prime Minister Narendra Modi, granted the final approval, which is the last step before formalizing the agreement. The aircraft will be produced by Hindustan Aeronautics Limited (HAL), a Maharatna public sector enterprise under the Ministry of Defence, headquartered in Bengaluru.

 

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This order follows a previous contract for 83 LCA Mk1A jets worth ₹36,400 crore. However, HAL missed the initial deadline of February 2024 for starting deliveries of the Mk1A due to delays in receiving the F404-IN20 engines from GE Aerospace, based in the U.S. These jets are set to replace the Indian Air Force’s remaining MiG-21s, which are slated for retirement in September.

 

Despite facing challenges, HAL has committed to delivering 12 Mk1A aircraft by the end of the 2025-26 period. The company has already completed the assembly of six aircraft, which are currently operational with reserve engines as a temporary solution. The second GE engine for the Mk1A was delivered to HAL in mid-July.  ALSO READ | Dividend stocks: HAL, RVNL, 12 others go ex-date on Aug 21; do you own any?

Should you buy, sell, or hold HAL stocks? 

Kranthi Bathini, director -equity strategy, WealthMills Securities, is upbeat on HAL as he believes the company and its associates will benefit from the government's clearance of ₹62,000 crore order to procure 97 additional indigenous Light Combat Aircraft (LCA) Tejas Mk1A fighter jets from HAL for the Indian Air Force (IAF).

 

Bathini sees 10-15 per cent upside from the current levels and recommends holding the stock and buying at every dip.  Independent market analyst Ambareesh Baliga suggests holding HAL stock. "Execution could be an issue for most of these defence companies - which market is not discounting," he said. 

Besides, Motilal Oswal, in its post-Q1 result report, said that with engine supplies ramping up from GE Aerospace for the Tejas Mk1A aircraft order, aircraft deliveries are expected to accelerate in the coming quarters.

 

The brokerage reiterated a 'Buy' rating on the stock with a target of ₹5,800 per share. 

Technical view on HAL shares

"HAL has been trading in a narrow consolidation range for the past four weeks, reflecting a tug-of-war between buyers and sellers. The broader defense sector is also consolidating, which is keeping the stock range-bound. On the technical front, HAL is facing rejection from the 50-EMA, which is acting as a strong resistance around ₹4,650," said Kunal Kamble, sr. technical research analyst, Bonanza. 

He added: On the downside, the stock is respecting its 200-EMA near ₹4,425, indicating this level as a crucial support zone. Momentum indicators suggest indecision. Overall, the setup indicates no clear directional bias, and it is prudent to wait for a decisive breakout on either side before initiating fresh positions.