Alpha | HAL – Equity Research Desk

July 2, 2022 . Equities Desk

HAL – Largest Defence Company

Hindustan Aeronautics Ltd. (HAL) was incorporated as Aeronautics India Ltd on August 16, 1963. Subsequently, Hindustan Aircraft Ltd, a company incorporated in 1940, was merged with the company and the name of the company was changed to Hindustan Aeronautics Ltd (HAL) with effect from October 1, 1964.

HAL is the largest DPSU in terms of the value of production and was given Navratna status by the Government of India (GoI) in June 2007.

Currently, HAL has 20 production and 10 R&D centers co-located with the production divisions, at nine geographic locations across the country.


We believe the company’s focus on indigenous design & development of defence platforms/components would drive faster execution of projects in the years to come. At CMP, the stock trades at 12x FY24E EPS. We recommend a BUY rating in the stock with the target price (TP) of Rs.2085, 15x FY24E EPS. 

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