Hindustan Aeronautics Limited (HAL), a leading defence PSU, has been a star performer in the stock market. Over the past five years, HAL shares have delivered an incredible 1400% return, making it a multibagger stock. Recently, domestic brokerage Motilal Oswal gave HAL a “Buy” rating, predicting an additional 26% rally from its current levels.
HAL’s strong fundamentals back its impressive performance. The company boasts a robust order book worth ₹1.8 lakh crore, with a pipeline of ₹6 lakh crore in upcoming projects. HAL is transitioning from a licensed production model to an indigenized one, working on marquee projects like Tejas Mk1, Mk1A, and Light Utility Helicopters. This shift is expected to drive significant revenue growth.
Motilal Oswal forecasts a 29% revenue CAGR and a 33% EBITDA CAGR over FY25–27, supported by large platform orders and backward integration. Near-term catalysts include aircraft deliveries and engine supplies, while long-term growth will stem from new defence projects.
With its strong order book, innovative projects, and growth potential, HAL remains a promising investment for those seeking long-term gains. However, investors should consult experts before making decisions.
