By BullScreen Editorial Team 
Shares of Hindustan Aeronautics Limited (HAL) are in focus after JM Financial initiated coverage with a ‘Buy’ rating, citing strong growth visibility and a favourable risk-reward profile. The brokerage has set a target price of ₹4,875, implying an upside of more than 20% from the April 9 closing price of ₹4,033.
On Friday morning, HAL shares were trading around ₹4,109, up nearly 1.9% on the NSE, outperforming the broader Nifty 50, which rose about 1.09%. The stock has corrected roughly 22% over the past six months, compared to an 8% decline in the benchmark index, making valuations more attractive.
JM Financial values HAL at 29 times its post-COVID historical average, based on an estimated FY28 EPS of ₹168. The brokerage expects India’s defence push to drive long-term demand, particularly as the Indian Air Force faces a gap between its current fleet strength of around 29 squadrons and the required 42.
The expected retirement of ageing aircraft such as MiG-29 and Mirage 2000, along with ongoing programmes like Tejas Mk1A and future platforms, is likely to accelerate procurement. HAL, as the country’s only indigenous defence aircraft manufacturer, is well positioned to benefit.
The brokerage also highlighted a ₹9 trillion opportunity in air defence capital expenditure over the next 6–7 years, supported by rising investments in advanced warfare systems.
Revenue is projected to grow at a 21% CAGR over FY26–28, led by a sharp ramp-up in manufacturing. However, delays in key projects or increased competition from private players remain potential risks.