HSBC initiated coverage on Hindustan Aeronautics Limited (HAL) with a Buy rating. The firm set a price target of Rs 6,350. This target suggests a 35% potential upside. The calculation is based on the September 16, 2026, trading price of Rs 4,688.
The rating follows a five-session decline in the Nifty India Defence index. HSBC expects strong earnings visibility from a multi-year domestic procurement cycle and rising exports. The Defence Ministry recently finalized the delivery timeline for 97 Tejas MK-1A aircraft. HAL will manufacture these units for delivery between 2027 and 2033.