HAL's prospects are brighter than ever; board announces stock split

But stock appears to have fully priced in the near-term gains

Hindustan Aeronautics (HAL) is one of the major beneficiaries of the focus on indigenisation of the defence sector. The public sector undertaking (PSU) has outstanding orders of over Rs. 82,000 crore, and has strong financials and proven technical expertise. One of the gaps in the technology value chain has also been plugged with the announcement of a deal with GE to produce 99 engines for fighter aircraft. 

In addition, the licensing terms include transfer of technology, which will include transfer of multiple critical technologies which were previously blocked. As a result, India could develop expertise in aero engine design –