Air defence stock: HAL shares get price target hike, may cross Rs 5,000 in a year 

HAL share price today: Shares of air defence major Hindustan Aeronautics Ltd (HAL) are set to cross the Rs 5,000 mark in a year, according to PL Capital. The brokerage has raised its price target to Rs 5423 against the earlier Rs 5338.

However, HAL’s execution on the deliveries of Tejas Mk1A aircrafts and supply chain-related issues will be a key monitorable in the coming quarters. HAL stock ended at Rs 4326 on Monday. Market cap of the firm  stood at Rs 2.85 lakh crore. The share touched an intraday high of Rs 4374. HAL shares hit a 52 week high of Rs 5166 on May 16, 2025.

The defence stock's RSI stands at 46.5, signalling major scope for rally. An RSI above 70 indicates the stock is overbought on charts.

HAL shares stand lower than the 5 day, 10 day, 20 day, 30 day, 150 day, 200 day but higher than the 50 day, 100 day moving averages.

The stock has gained 17.50% in a year, risen 181% in three years and 656% in five years.

According to PL Capital, HAL plans cumulative investments of Rs 12,000 crore by 2030 towards capacity expansion, aero-engine infrastructure and next-generation defence platforms, which should support long-term growth.

"The stock is currently trading at a P/E of 31.7x/28.3x on FY27/28E earnings. We maintain ‘Buy’ rating 
valuing the stock at a PE of 35x Mar’28E (same as earlier) arriving at a TP of Rs 5,423 (Rs 5,338 earlier)," said PL Capital

The brokerage is bullish on HAL’s long-term play on the growing strength & modernization of India’s air defense given 1) it is the primary supplier of India’s military aircraft, 2) long-term sustainable demand opportunity owing  to government’s push on indigenous procurement of defense aircraft, 3) a robust order  book with a 2-year pipeline of Rs1.0trn+, 4) leap in HAL’s technological capabilities due  to development of advanced platforms (Tejas, AMCA, GE-414 & IMRH engines, etc.),  and 5) improvement in profitability via scale & operating leverage.

Hindustan Aeronautics Limited is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The company's products include HAWK, light combat aircraft (LCA), SU-30 MKI, intermediate jet trainer (IJT), DORNIER and HTT-40.