HAL share price target 2025 at 5000 given by ICICI Securities looks closer as the company is in a good news spree, today, in a landmark move to bolster India’s defense capabilities, the Ministry of Defence (MoD) has inked two contracts with Hindustan Aeronautics Limited (HAL) for the procurement of 156 Light Combat Helicopters (LCH), named ‘Prachand’.
The agreements, valued at ₹62,700 crore (approximately $7.33 billion), The contracts specify the allocation of 66 helicopters to the Indian Air Force (IAF) and 90 to the Indian Army. These indigenously developed helicopters are slated for deployment along India’s borders with China and Pakistan, enhancing the armed forces’ operational readiness in these strategically sensitive regions. HAL will manufacture the LCHs at its facilities in Bengaluru and Tumkur, Karnataka.
Capabilities of the LCH ‘Prachand’
The ‘Prachand’ LCH is India’s first indigenously designed and developed combat helicopter capable of operating at altitudes exceeding 5,000 meters (16,400 feet). This makes it particularly suitable for high-altitude operations in areas like the Siachen Glacier and Eastern Ladakh. The helicopter is equipped to fire both air-to-ground and air-to-air missiles and features advanced avionics, stealth capabilities, and data link systems, enabling network-centric operations and enhancing combat effectiveness.
The procurement of these 156 LCHs represents the largest defense acquisition in India’s history, underscoring the nation’s commitment to strengthening its indigenous defense capabilities. By enhancing the combat readiness of the IAF and the Indian Army, the ‘Prachand’ helicopters are poised to play a pivotal role in securing India’s borders and responding effectively to potential threats in high-altitude environments.
HAL is in a good news spree
Earlier in the week, GE Aerospace started delivering the first of 99 (nos.) F404-IN20 engines to HAL for the light combat aircraft Tejas Mk 1A. The Tejas Mk-1A is a Rs 48,000-crore order and accounts for nearly 37 percent of HAL’s calculated order book of Rs 1.3 lakh crore. The engine deal between GE and HAL was finalized in 2021, and engines were scheduled to arrive in 2024 but were delayed. So, as the engines are coming now Tejas MK1A project will catch pace.
The F404-IN20 engine is specifically tailored for India’s single-engine fighter program. It features a high-thrust design, advanced turbine blades, and a modified high-flow fan to meet the IAF’s operational needs. GE and HAL engineers have worked closely for years to ensure the engine aligns with Tejas’ unique requirements.
Following the news, shares of HAL rose 2 percent to Rs 4209.20 that day. The defence stock has climbed 28.29 percent in the past one month and is flat for 2025. In another positive news, HAL revised its contract with the Indian Air Force (IAF) for the delivery of Light Combat Aircraft (LCA) Tejas Mk1 Final Operational Clearance (FOC) fighter jets.
The original contract, signed on December 23, 2010, was valued at Rs 5,989.39 crore. Due to revisions in the delivery schedule, the contract’s value has now been updated to Rs 6,542.20 crore.
HAL Share price target 2025
ICICI securities see the HAL share price target 2025 at 5,000 as the brokerage expects HAL to report revenue growth of 25–28 percent through to FY27E. It upgraded HAL to ‘Buy’ from ‘Add’ and recommended it as its top pick among defence PSUs.
With this new 62,000 crore billion order of LCH ‘Prachand’, HAL’s order book is now close to 2 lakh crore and more 97 Tejas MK1A orders in the pipeline; the order book could easily reach close to 3 lakh crore. The monopolistic position of HAL in Indian defence helicopter and fighter aircrafts bode well for the company, it just needs to focus on execution plan.
At the current price of 4,177, HAL shares are trading at a P/E of 32.3; given the 20% expected growth in FY26 EPS at 166, the stock of HAL is trading at a P/E of 26. Given our base to bull-case scenario where HAL overcomes the execution part, the stock could easily be assigned a P/E of 35, giving it a target of 5,670 in the next 18 months.
Chart of HAL and technical analysis
The stock of HAL is trading above key moving averages, indicating bullish momentum. RSI is strong, and the stock has recently broken above this resistance line, signaling a potential breakout. The stock was in a downtrend since its peak in June 2023, as shown by the descending trendline.
The price has crossed above the trendline, but it needs a strong follow-up candle (preferably with high volume) to confirm the breakout. A daily close above ₹4,200–₹4,250 will strengthen the breakout. The next major resistance is at 5,000 levels; once taken out, the stock could retest previous highs of 5,600. If the breakout fails, the stock could again consolidate in the 4,000-4,200 range. Major downside will be if it falls below 4,000 (unlikely).
Conclusion
The stock of HAL is placed well, and the company’s strong order book and orders in the pipeline provide good revenue visibility. Execution has been a challenge for the company. Still, things are getting in place swiftly, and expectations are that the company will be able to execute orders promptly and efficiently. HAL’s new attack helicopter order is a testament of trust Indian armed forces put in the company, so investors should ride the stock with a long term view in mind.
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