HAL Shares Surge as GE Engine Deliveries Improve, Goldman Sachs Sees 23% Upside

Hindustan Aeronautics Ltd., a state-run Indian defense major, saw its shares rise by about 3% on Friday 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, which has been struggling with delays in aircraft production due to engine availability issues. 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.

The company had initially targeted the delivery of 12 Tejas Mk1A aircraft in FY26 but later cut it to 5-6. Now, HAL is targeting the delivery of 20 Tejas Mk1A aircraft in FY27. The Indian defense major has an order worth around ₹48,000 crore for the Tejas Mk1A.