Shares of Hindustan Aeronautics Ltd. (HAL) opened flat on Tuesday, July 8, and rose to an intraday high of ₹5,050.10. However, the stock erased those gains and is now trading near the day’s low of ₹4,979.With today’s decline, HAL shares are down around 12% from their 52-week high of ₹5,674.75, which was touched on July 9, 2024.
Global brokerage firm JPMorgan has maintained an ‘Overweight’ rating on HAL with a price target of ₹6,105 per share.
The brokerage wrote in its note that HAL’s steady progress continues, backed by a strong order book and a significant pipeline.”Progress on the AMCA tender will be key to watch,” JPMorgan said, highlighting long-term potential as India upgrades its aging fighter aircraft fleet.
Meanwhile, speaking to CNBC-TV18 on Monday, Defence Secretary RK Singh said the government aims to increase defence expenditure from 1.9% to 2.5% of GDP. He added that India’s defence infrastructure would require additional funding over the long term.”We are going to be seeking additional allocation in the five-year cycle of the 16th Finance Commission,” Singh said, adding that the ministry is expected to meet its quarterly expenditure targets.The Defence Secretary also revealed that India signed defence contracts worth ₹2 lakh crore in FY25 and plans to maintain that pace going forward.On the technical front, HAL’s Relative Strength Index (RSI) stands at 56.4, suggesting the stock is neither overbought nor oversold. (An RSI below 30 indicates an oversold condition.)Out of 21 analysts covering the stock, 16 have a ‘Buy’ rating, three recommend ‘Hold’, and two have a ‘Sell’ rating.HAL shares were down 0.51% at ₹4,986.85. The stock is still up about 20% so far in 2025.
