'Buy' HAL; don't panic on L&T amid Middle East tensions: G Chokkalingam
In an interaction with Business Today on Monday, the market expert said, "We have a 'BUY' call on HAL. I think there will be more focus on protecting Indian skies in the changed environment due to the recent conflicts."
- Mar 2, 2026,
- Updated Mar 2, 2026 11:04 AM IST
As geopolitical tensions escalate in the Middle East, G Chokkalingam, Founder and Managing Director of market research firm Equinomics Research, believes the long-term outlook for Hindustan Aeronautics Ltd (HAL) and Larsen & Toubro Ltd (L&T) remains intact.
In an interaction with Business Today on Monday, Chokkalingam said, "We have a 'BUY' call on HAL. I think there will be more focus on protecting Indian skies in the changed environment due to the recent conflicts. So HAL would be a beneficiary. Its gross cash is more than its annual revenue. More than three-fourths of its total revenue comes from spare parts, repairs and related services. That gives a lot of comfort and confidence in the revenue stream. The order book is also substantial. So that is one stock I am very optimistic about," he said.
On L&T, Chokkalingam said the impact would depend on how long the conflict persists. "If the situation persists for several quarters or years in the Middle East, then yes, L&T would be affected. One has to take a call on whether the war is going to continue beyond one, two or three quarters. In that case, one should reconsider holding the stock. But if the war lasts that long, the whole market will also correct badly," he noted.
"I would not panic on L&T. The Middle East has seen many wars in the past and L&T has still grown. Assuming a resolution is found soon, I believe L&T could actually be a beneficiary in the medium to long term, as it may get opportunities to rebuild affected regions. I may be wrong, but I believe this war cannot continue for very long," he also said.
"L&T is a part of Nifty, so it gets consistent domestic institutional investor (DII) support whenever foreign institutional investors (FIIs) sell, which is comforting. Second, L&T is an extraordinarily diversified conglomerate. About one-third of its revenue comes from technology and IT services, which can act as a defensive cushion in the event of a downturn," he added.
"It is entering areas such as semiconductors, data centres, new energy, nuclear energy and electronic manufacturing. That gives additional comfort. Along with its core engineering business, L&T is highly diversified across verticals. Therefore, it appears to be a better stock than many other engineering companies," Chokkalingam further stated.
As geopolitical tensions escalate in the Middle East, G Chokkalingam, Founder and Managing Director of market research firm Equinomics Research, believes the long-term outlook for Hindustan Aeronautics Ltd (HAL) and Larsen & Toubro Ltd (L&T) remains intact.
In an interaction with Business Today on Monday, Chokkalingam said, "We have a 'BUY' call on HAL. I think there will be more focus on protecting Indian skies in the changed environment due to the recent conflicts. So HAL would be a beneficiary. Its gross cash is more than its annual revenue. More than three-fourths of its total revenue comes from spare parts, repairs and related services. That gives a lot of comfort and confidence in the revenue stream. The order book is also substantial. So that is one stock I am very optimistic about," he said.
On L&T, Chokkalingam said the impact would depend on how long the conflict persists. "If the situation persists for several quarters or years in the Middle East, then yes, L&T would be affected. One has to take a call on whether the war is going to continue beyond one, two or three quarters. In that case, one should reconsider holding the stock. But if the war lasts that long, the whole market will also correct badly," he noted.
"I would not panic on L&T. The Middle East has seen many wars in the past and L&T has still grown. Assuming a resolution is found soon, I believe L&T could actually be a beneficiary in the medium to long term, as it may get opportunities to rebuild affected regions. I may be wrong, but I believe this war cannot continue for very long," he also said.
"L&T is a part of Nifty, so it gets consistent domestic institutional investor (DII) support whenever foreign institutional investors (FIIs) sell, which is comforting. Second, L&T is an extraordinarily diversified conglomerate. About one-third of its revenue comes from technology and IT services, which can act as a defensive cushion in the event of a downturn," he added.
"It is entering areas such as semiconductors, data centres, new energy, nuclear energy and electronic manufacturing. That gives additional comfort. Along with its core engineering business, L&T is highly diversified across verticals. Therefore, it appears to be a better stock than many other engineering companies," Chokkalingam further stated.