Indo-PAK: This Indian Defence PSU Is Bigger Than Dassault, The Maker Of Rafale Fighter Jets; Do You Own One?

Defence Stocks Update: The engines of defence stocks accelerated in the skies just as the popular Rafale fight jets took off from Indian airspace to carry Operation Sindoor in Pakistan. Indian defence stocks climbed by 7% to 20% on a week-on-week and by 13% to over 25% in a month, as tension near borders escalated. Despite the latest ceasefire agreement with Pakistan, Indian defence PSU stocks continue their winning streak.

But did you know, that there is one zero-debt Indian defence PSU company which is just $3 billion away from entering the top 10 clubs of most valued defence stocks but is also bigger than Dassault Aviation which is the maker of Rafale fighter jets?

India has a variety of fighter jets from home-made to imported majorly from Russia and France. As per the data of Global Firepower, the Indian army has about 2,229 aircraft compared to the 1,399 aircraft of Pakistan. While India also beats Pakistan in fighter aircraft by 185 jets to a total of 513 aircraft compared to the latter's 328 aircraft.

Notably, Su-30MKI is a jointly developed aircraft by Russian-based defence company Sukhoi and India's largest defence player Hindustan Aeronautics (HAL). Su-30MKI accounts for the majority of the inventory of India's combat aircraft. HAL's Tejas aircraft is the first indigenous aircraft of India which is flown since 2015, while the latest addition to its inventory is of Rafale fighter jets, made in France.

Rafale fighter jets have been used by the Indian army since July 2020, and it was this brand that was used to carry the surgical strike in the terrorist infrastructure of Pakistan and Pakistan-occupied Kashmir.

During Operation Sindoor, the Indian Air Force (IAF) deployed Rafale fighter jets for carrying and executing the mission. The jets launched SCALP and HAMMER missiles in the targeted regions.

The maker of Rafale fighter jets is a France-based company, Dasault Aviation. Notably, India's HAL is bigger than Dasault, and they both witnessed opposite reactions from investors during Indo-PAK tension.

HAL is the 11th most valued defence company in the world, and the largest in India. Its market valuation is about $37.34 billion, just a little over $3 billion away from entering the club of top 10 and overtaking USA-based L3Hariss Technologies who has m-cap of $$40.47 billion.

Dasault is the top 15, but at the 14th rank with a market valuation of $27.64 billion.

Coming to stock performance, Dasault witnessed a bearish trend for the past week after ceasefire agreement broke-out between India and Pakistan.

Dassault Aviation Stock Price:

On Wednesday, Dassault stock ended marginally lower to 300.20 euros per piece, extending its weekly fall. In the past 5 sessions, Dassault shares are down by 7%, while in a month, the fall is marginal.

Dassault Aviation is a French aerospace company with proven dual expertise as a manufacturer of both military aircraft and business jets. Creator of more than 100 prototypes in the last century, with over 10,000 aircraft delivered to 90 countries, as per its website.

There are 36 Dassault Mirage 2000H in service for the Indian army, and 10 Dassault Mirage 2000TH. In the case of Dassault Rafale, there are 8 Rafale DH and 28 Rafale EH used by the Indian forces.

HAL Share Price:

Meanwhile, HAL's share price closed up by 3.5% to Rs 4,769.20 apiece on BSE. In the past five sessions, the stock jumped 7%, and in a month, the upside was about 13.4%.

During the fourth quarter of FY25, HAL's new order book was worth Rs 62,700 crore including the delivery of 156 light combat helicopters called 'Prachand'.

Established in 1940, Hindustan Aircraft Limited (HAL) operates as an aerospace and defence company. The company uses international design, under licence, to build and assemble aircraft and engines such as Prentice, Vampire and Gnat. It also designs and develops domestic aircraft. The company, in collaboration with the Inter-Continental Aircraft Company of USA, commenced its business of manufacturing Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber Aircraft, as per IBEF.

HAL's three key products include Su-30 MKI Aircraft, LCA Tejas Aircraft and Dhruv - Advance Light Helicopter (ALH).

Which Stock To Buy?

Dassault Stock Recommendation: Based on 7 Wall Street analysts offering 12 month price targets for Dassault Aviation in the last 3 months. The average price target is €306.00 with a high forecast of €390.00 and a low forecast of €230.00. The average price target represents a 1.66% change from the last price of €301.00, as per TipRanks consensus.

HAL Stock Recommendation: The consensus recommendation from 17 analysts for Hindustan Aeronautics Ltd. is STRONG BUY. EPS is expected to grow by 18.6% in FY26. The average 1-year target price on HAL is of Rs 4890.59, as per Trendlyne data.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.