HAL Shares Soar 6% Amid Heavy Volumes After Appointment of New Chairman

Hindustan Aeronautics (HAL) share priceShares of Hindustan Aeronautics(HAL) soared 6 per cent to ₹4,578.90 on the BSE in Monday’s intra-day trade amid heavy volumes.Since April 2026, the stock price of the public sector undertaking (PSU) defence company has rallied 31 per cent. It had hit a 52-week high of ₹5,166 on May 16, 2025.At 11:02 AM on Monday, HAL was quoting 5.5 per cent higher at ₹4,574.15, as compared to 0.83 per cent rise in the BSE Sensex. A combined 2.22 million equity shares changed hands on the NSE and BSE.What’s driving PSU defence stock on Monday?State-run aerospace behemoth HAL on Friday, May 1, 2026 saidKota Ravi assumed charge as the 22nd Chairman and Managing Director (CMD) of the company. He succeeded D K Sunil, who superannuated on April 30.In CMD role, Kota Ravi drives the company's global ambitions while transforming it into a competitive aerospace and defence enterprise, driven by innovation, Artificial Intelligence (AI), operational excellence and people. Previously, as Director (Operations) at HAL, he led strategic planning and played a key role in securing HAL's Maharatna status, the company said.Also ReadTN election results trends weigh on Sun TV Network; stock tumbles over 9%HUL up 5% post Q4 results; brokerages turn bullish, see up to 20% upsideLaurus Labs rallies 6%, hits record high post Q4 results; brokerages upbeatJindal Steel shares rise 4% on Q4 results; analysts peg up to 11% upside'Sell in May' not a good approach in 2026, says tech analyst Ajit Mishra“During his tenure, he concluded various big-ticket contracts for HAL such as contract to supply 180 LCA Tejas to the Indian Air Force, 156 LCH Prachand to Indian Army and Indian Air Force and is credited with the operationalisation of the LCA Tejas fleet in IAF,” the company said.“He has been a driving force in strengthening indigenous capabilities within the LCA Tejas programme by increasing local content and expanding production capacity in Nasik. His initiatives have diversified HAL into Civil manufacturing and MRO, creating new revenue streams and expanding HAL's market presence,” it added.CHECKQ4 Results TodayJM Financial Institutional Securities maintains ‘Buy’ on HAL with target price of ₹4,875Analysts at JM Financial Institutional Securities expect LCA Tejas Mk1A deliveries along with continued execution of other projects such as ALH, LCH, and HTT-40 – to lead to strong growth in manufacturing revenue (50 per cent+ CAGR) over FY26–28. With continued momentum in Repair and Overhaul (ROH) revenue of 8 per cent CAGR over FY26–28E (in line with management guidance), the brokerage firm estimate a 21 per cent CAGR in revenue over FY26–28.With rise in share of revenue from the manufacturing segment (particularly from large platform deliveries), analysts expect EBITDA margin to moderate over FY26–28E. All in all, the brokerage firm estimates an EBITDA CAGR of 19 per cent, translating to 14 per cent CAGR in EPS over FY26–28E.Enhanced certainty has emerged around initial deliveries of LCA Tejas Mk1A aircrafts. Media reports suggest that the IAF has agreed to accept the delivery of five Tejas Mk1A aircrafts starting April 2026. Acceptance would be subject to validation of critical combat functions while non-critical software and capability enhancements may be completed at a later date under limited contractual relaxations.“Furthermore, GE Aerospace has delivered the sixth engine for LCA Tejas Mk1A in early April 2026. These developments reduce uncertainty over deliveries of LCA Tejas Mk1A, which may be a key positive driver for the stock in our view. We value HAL at its (post-covid) historical average of 29x on FY28E EPS of ₹168, yielding a target price of ₹4,875; maintain BUY,” the brokerage firm said.======================================Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.