Stock price of HAL jumps 1.47% to Rs. 4,518 following announcement of new Rs. 62,000 crore defense contract

Hindustan Aeronautics Limited (HAL) is making headlines following the Union Cabinet's approval of a significant deal worth Rs. 62,000 crore for 97 LCA Tejas Mark 1A fighter aircraft. This development comes at an interesting time for the defence sector giant, as the company's stock price, currently hovering around ₹4,383.60, shows a slight decline from its previous close of ₹4,457.60 [2].

Despite the dip in net profit, HAL posted double-digit revenue growth, margin expansion to 26.7%, and a final dividend of Rs. 15 per share for FY25. The Tejas programme, LCH "Prachand," and upcoming projects ensure visibility for revenue growth well into the next decade.

The Tejas Mark 1A incorporates advanced avionics, modern radar systems, and improved combat readiness, underscoring India's strategic focus on indigenous defence capabilities. This latest order approval provides sustained revenue visibility for the coming decade.

HAL's share price today, at press time, has seen trading volume cross 1.86 million shares. The company commands a market capitalization of over Rs. 3.02 lakh crore [1]. Despite the elevated valuations compared to historical averages, they are supported by strong order visibility, improving margins, and sector tailwinds, making it not excessively overvalued.

Analysts expect HAL stock to trade in the range of Rs. 4,800-Rs. 5,200 in the near term, driven by strong order inflows [4]. Many analysts consider HAL a good buy due to its strong order pipeline, consistent government support, and leadership in India's defence manufacturing. Analysts rate HAL a 'Buy', with 60% assigning this rating [5].

In terms of market capitalization, HAL's market cap is around ₹2.93 trillion (approx.) as per the data from August 20, 2025 [1]. Another source gives a comparable figure of approximately ₹3.18 trillion (₹3,18,133 crore) around mid-July 2025, which aligns closely with the above figure considering usual market fluctuations [3].

It's worth noting that HAL's stock's beta of 1.31 indicates higher volatility compared to the broader market [6]. Short-term corrections are possible in the stock price, but long-term investors may find the company attractive due to defence sector policy tailwinds and steady dividend payouts.

| Parameter | Value | Date/Source | |---------------------|--------------------------|-------------------------| | Stock Price | ₹4,383.60 | Aug 26, 2025[2] | | Market Capitalization| ₹2.93 trillion (approx.) | Aug 20, 2025[1] |

[1] Market Capitalization Data

[2] Stock Price Data

[3] Market Capitalization Data

[4] Analyst Expectations

[5] Analyst Ratings

[6] Beta Data

Stock price of HAL jumps 1.47% to Rs. 4,518 following announcement of new Rs. 62,000 crore defense contract