Rs 1,89,300 order book: Multibagger defence jet manufacturer stock zooms 3.6% with heavy volume; Here’s why

On Wednesday, shares of Hindustan Aeronautics Ltd zoomed 3.6 per cent to Rs 4,611.50 per share from its previous closing of Rs 4,452.85 per share. The stock’s 52-week high is Rs 5,166 and its 52-week low is Rs 3,045.95. The shares of the company saw a spurt in volume by more than 2 times.

Hindustan Aeronautics Ltd (HAL), a prominent Indian defence company specialising in aircraft and helicopter design, manufacturing, repair and overhaul, is set to receive a significant boost. The Cabinet Committee on Security (CCS) has reportedly approved the acquisition of 97 Light Combat Aircraft (LCA) Mark 1A fighter jets from HAL, a deal valued at approximately Rs 62,000 crore. This potential order, if officially confirmed, would represent one of the largest in the history of the state-run enterprise, highlighting the indigenous development of these advanced fighter jets. The LCA Mark1A is an upgraded variant of the Tejas fighter, designed to replace India's ageing MiG-21 fleet.

The Tejas Mk1A boasts enhanced combat capabilities, with deliveries slated to commence this year, including six jets planned for FY26, following the successful resolution of prior engine supply issues. This marks HAL's second substantial order for the aircraft, building upon a contract secured in February 2021. The news of this massive order led to HAL's shares gaining up to 3.5%, underscoring the company's robust order pipeline and improving margins, which solidify its critical role in India's burgeoning defence manufacturing sector.

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About the Company

Hindustan Aeronautics Ltd (HAL), a leading Indian defence company, excels in the design, manufacturing, repair and overhaul of aircraft and helicopters. Organised into three key segments—Manufacturing, Services and other activities—HAL boasts 20 production and overhaul divisions and nine R&D centres across India, prioritising indigenous programs like the HTT-40 Basic Trainer Aircraft and Light Utility Helicopter (LUH). Notably, HAL achieved the prestigious 'Maharatna' status on October 14, 2024, becoming the first Defence Public Sector Undertaking (PSU) to earn this distinction, signifying enhanced operational and financial autonomy.

According to Quarterly Results, the company reported net sales of Rs 4,819 crore and net profit of Rs 1,384 crore in Q1FY26. In its annual results, the net sales increased by 2 per cent to Rs 30,981 crore and net profit increased by 10 per cent to Rs 8,364 crore in FY25 compared to FY24.

The President of India’s portfolio owns the majority of the stake, i.e., 71.64 per cent as of June 2025 and DIIs increased their stake to 8.67 per cent in June 2025 compared to March 2025. The company has a market cap of over Rs 3 lakh crore and has maintained a healthy dividend payout of 31.4 per cent with a strong order book of Rs 1,89,300 crore. The stock gave multibagger returns of 305 per cent in 3 years and a whopping 650 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.