HAL Shares Soar 3% on Boosted Engine Deliveries
Hindustan Aeronautics Ltd., the Indian state-run defence major, saw its shares rise by 3% on September 4 after GE Aerospace delivered three more F404 engines to the company in August. This brings the total number of engines delivered for the Tejas Mk1A programme to 10.
The improved pace of engine supplies is seen as a positive development for HAL, as engine availability remains the key bottleneck for the Tejas Mk1A programme. Goldman Sachs has a 'Buy' rating on HAL with a target price of ₹5,870, implying a 23% upside in comparison to Thursday's close.
Goldman Sachs' channel checks indicate that around 30 Tejas Mk1A airframes have already been assembled. Timely engine availability could facilitate the ramp-up in aircraft deliveries and reduce execution risks for HAL.