HAL Shares Surge as Cabinet Approves ₹62,000 Crore Order for 97 LCA Mk-1A Jets, with More Potential Triggers Ahead

1 min read     Updated on 21 Aug 2025, 09:56 AM
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Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

Hindustan Aeronautics Ltd. (HAL) has received approval from the Cabinet Committee on Security for the procurement of 97 Light Combat Aircraft (LCA) Mk-1A jets, valued at ₹62,000 crore. This order, HAL's second for MK1A, is expected to boost the company's order book. The LCA Mark1A is an upgraded version of the Tejas fighter jet, designed to replace aging MiG-21 aircraft. HAL's stock rebounded to trade at ₹4,498.80 following the news. UBS maintains a 'Neutral' rating on HAL with a price target of ₹4,900. Five additional major triggers are anticipated for HAL in the near future.

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*this image is generated using AI for illustrative purposes only.

Hindustan Aeronautics Ltd. (HAL) shares rebounded from early losses to trade higher at ₹4,498.80 following a significant development in India's defense sector. The Cabinet Committee on Security (CCS) has approved the procurement of 97 Light Combat Aircraft (LCA) Mk-1A jets, valued at ₹62,000 crore, for the Indian Air Force. This large order is expected to boost HAL's order book guidance for the full year, with potentially five more major triggers ahead for the defence PSU.

Key Highlights

  • The CCS approved the proposal for 97 LCA Mk-1A jets.
  • This marks HAL's second MK1A order, following one received in February 2021.
  • The LCA Mark1A is an upgraded version of the Tejas fighter jet, designed to replace aging MiG-21 aircraft.
  • UBS maintains a 'Neutral' rating on HAL with a price target of ₹4,900.
  • Five additional major triggers are anticipated for HAL, though specific details are not yet available.

Order Details and Market Reaction

HAL, in a regulatory filing, confirmed that the Ministry of Defence communicated the CCS approval for the procurement of 97 Light Combat Aircraft Mk-1A, along with associated equipment. This substantial order is expected to bolster HAL's order book and reinforce its position in India's defense manufacturing sector.

The market reacted positively to this news, with HAL's stock recovering from early losses to trade higher. The stock has gained 7.00% year-to-date, reflecting investor confidence in the company's growth prospects.

Analyst Outlook

UBS, a leading financial services firm, maintains a 'Neutral' rating on HAL stock with a price target of ₹4,900. The firm expects deliveries of the LCA Mk-1A to commence with 6 jets in the current financial year.

Among the 22 analysts covering HAL:

Recommendation Count
Buy 17
Hold 3
Sell 2

This predominantly positive analyst sentiment underscores the potential impact of the new order on HAL's future performance.

LCA Mk-1A: Advancing India's Air Defense

The LCA Mark1A is an upgraded version of the Tejas fighter jet, specifically designed to replace the aging fleet of MiG-21 aircraft in the Indian Air Force. This order not only strengthens India's air defense capabilities but also aligns with the government's push for self-reliance in defense manufacturing under the 'Make in India' initiative.

Future Prospects

With the confirmation of this large order and the hint of five additional major triggers on the horizon, HAL's future looks promising. These developments could significantly impact the company's order book and long-term growth trajectory. Investors and industry watchers will be keenly observing HAL's execution and delivery timelines, as well as any announcements regarding the anticipated triggers, which could play a crucial role in determining its stock performance and market position in the coming months.

Historical Stock Returns for Hindustan Aeronautics

1 Day5 Days1 Month6 Months1 Year5 Years
-0.02%-0.91%-5.99%+33.51%-6.19%+647.37%
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HAL Sets August 20 as Last Date for Rs 15 Final Dividend Eligibility

1 min read     Updated on 20 Aug 2025, 08:12 AM
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Reviewed by
Radhika SahaniBy ScanX News Team
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Overview

Hindustan Aeronautics Ltd. (HAL) has declared a final dividend of Rs 15 per share, with August 20 as the last day to buy shares for dividend eligibility. The total dividend distribution amounts to Rs 1,003 crore, with the Central Government receiving Rs 718.60 crore. Over 13 lakh retail investors will collectively receive nearly Rs 70 crore. This is HAL's second dividend for the fiscal year, following an interim dividend of Rs 25 per share. The stock closed at Rs 4,514.30, down 1.40%, with a current dividend yield of 0.90%.

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Hindustan Aeronautics Ltd. (HAL), a prominent player in the Indian aerospace and defense sector, has announced its final dividend. The company has set August 20 as the last day for investors to purchase shares to qualify for the dividend payout.

Dividend Details

Item Value
Final Dividend Amount Rs 15.00 per share
Record Date August 21
Total Dividend Distribution Rs 1,003.00 crore

Dividend Distribution Breakdown

HAL's dividend distribution will benefit various stakeholders:

  • Central Government: As the majority shareholder with a 71.64% stake, the government will receive Rs 718.60 crore.
  • Retail Investors: Over 13 lakh retail investors are set to collectively receive nearly Rs 70.00 crore.

Dividend History

This final dividend marks HAL's second dividend payout for the fiscal year:

  • Interim Dividend: Rs 25.00 per share
  • Previous Fiscal Year Final Dividend: Rs 13.00 per share

The current final dividend of Rs 15.00 per share represents an increase compared to the previous fiscal year's final dividend.

Stock Performance

HAL's stock performance has been mixed:

Metric Value
Closing Price (Latest) Rs 4,514.30 (down 1.40%)
12-Month Performance Up 6.60%
Year-to-Date Performance Down 6.00%
Current Dividend Yield 0.90%

Investors interested in receiving the final dividend should ensure they purchase HAL shares by August 20, as the record date is set for August 21. This dividend announcement underscores HAL's commitment to delivering value to its shareholders, including the government and retail investors.

Historical Stock Returns for Hindustan Aeronautics

1 Day5 Days1 Month6 Months1 Year5 Years
-0.02%-0.91%-5.99%+33.51%-6.19%+647.37%
Hindustan Aeronautics
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