Zero-Debt Defence PSU Stock Bull: Why HAL Share Price Jumped 10% In 7 Sessions? Buy For Highest Rs 6,360 TP

While the Indian stock market has started to gain bullish momentum, there is one stock, which is a defence PSU with zero debt, that has been rallying consistently for seven consecutive sessions. This defence is the largest in the sector in terms of market value and has given nearly 10% returns during this period. Brokerages are optimistic and continue to recommend BUY. Who is this stock?

It is none other than Hindustan Aeronautics (HAL). HAL shares have been on a bull run since September 5, 2025. The stock journeyed from a little over Rs 4,400 to nearing Rs 4,840. HAL is nearing its 52-week high of Rs 5,166 apiece, while the stock skyrocketed by nearly 59% from its 52-week low of Rs 3,045.95 apiece.

Hindustan Aeronautics (HAL) Share Price:

At the time of writing, HAL performed at Rs 4817.90 apiece, up by 0.52% on BSE, with a market cap of Rs 3,22,209.11 crore. The stock is near its intraday high of Rs 4839.00 apiece.

From September 5th to the current day's high, HAL shares have zoomed by a whopping 9.8%.

One of the key reasons for the bullish trend in HAL is its mega order wins.

"The stock remains in focus as the company approaches the maiden flight of its first series-production HTT-40 trainer aircraft, which is a significant milestone for the Indian Air Force," said Hariprasad K, SEBI - registered Research Analyst and Founder - Livelong Wealth.

HAL-ISRO Deal:

As per the latest filing, HAL has signed an SSL V Technology Transfer Agreement with ISRO, IN-SPACe & NSIL.

The SSL V is a three-stage vehicle designed to launch satellites weighing less than 500 kg into Lower Earth Orbit (LEO). Under this contract, HAL will absorb the technology in the first two years, followed by a 1 0-year production phase. The agreement grants HAL a non-exclusive, non-transferable license to the SSL V technology, which includes comprehensive design, manufacturing, quality control, integration, launch operations, and post-flight analysis documentation, as well as training and support. HAL will be responsible for the mass production of SSL V to meet Indian and global demands.

Should You BUY HAL Shares?

Analysts at Antique Stock Broking is the latest to recommend BUY on HAL because they believe the defence PSU has potential for double-digit growth in earnings despite the near-term outlook being volatile. Antique has set an Rs 6,360 apiece target on HAL, which is currently the highest of any expert recommendations on this stock.

Decoding its strong pipeline, in its report last month, ICICI Securities explained that DAC has accorded approvals for projects worth Rs 1.7 trillion; which it believes HAL may be one of the key beneficiaries of these projects including the MALE UAVs (under development with DRDO and project value of INR 300bn). Further, the key order expected in FY26 includes: i) 97nos. of LCA MK-1a (>INR 600bn), ii) Su-30 upgrade (>INR 600bn), iii) Do-228 order (~INR 20bn) and iv) RoH orders worth INR 190-200bn. Further, civil MRO facility is again a new driver for the company, as the facility is likely to get certified by FY26 end.

On the valuation, analysts at ICICI Securities said, "management has guided for 8-10% revenue growth (at higher end), including RoH revenue of INR 200bn and stable EBITDA margin. We reinitiate coverage with BUY and TP of INR 5,800 (based on 40x FY27E EPS)."

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