HAL Shares Jump 4% as DAC Clears Helicopter Procurement, CLSA Bullish; Check Target Price and Upside

Hindustan Aeronautics Ltd shares rose as much as 4% on Tuesday, building on early gains, after the Defence Acquisition Council cleared procurement proposals worth roughly ₹1.1 lakh crore that include Advanced Light Helicopters. Brokerage CLSA reaffirmed its positive stance on the defence PSU on the same day. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The stock climbed to ₹5,049.5, a 4% rise over Monday's close of ₹4,855.2. HAL has now gained around 15% in 2026, against a 9% fall in the Nifty 50, and its market capitalisation stands above ₹3.37 lakh crore. 

What the DAC approved 

Meeting on Monday under the chairmanship of Defence Minister Rajnath Singh, the DAC granted Acceptance of Necessity to acquisition proposals estimated at ₹1.1 lakh crore spread across the Army, Navy and Air Force. About 98% of the proposed spending has been reserved for Indian industry, which opens up a sizeable pool of work for domestic defence manufacturers. 

The proposals include Advanced Light Helicopters for the Indian Army, to be deployed on complex missions across varied terrain and operating conditions. 

CLSA's view 

CLSA has kept its 'outperform' rating on HAL with a target price of ₹5,481 per share, roughly 13% above Monday's closing level. 

By the brokerage's account, the DAC has cleared the purchase of 138 ALHs from HAL. CLSA estimates the order could add about 13% to the company's existing $27-billion order backlog and bring in close to $600 million in cash advances. 

The longer-term picture also looks healthy to the brokerage, which puts HAL's pipeline over the coming decade at around $48 billion. Two catalysts are on its watch list: deliveries of the Light Combat Aircraft Mk1A in the second half of the year and clearer visibility on the GE engine production agreement. 

CLSA also regards HAL as the cheapest pure-play defence stock in the market, despite its leading position in the sector. 

A faster procurement cycle 

The approvals fit a wider pattern of accelerating defence procurement in India. Motilal Oswal Financial Services counts approvals so far in FY27 at ₹1.62 lakh crore, and puts the cumulative total from FY25 to FY27 year-to-date at approximately ₹13 lakh crore. In the brokerage's assessment, these measures are enlarging the addressable market for domestic defence companies and giving investors better visibility on future order inflows. 

Disclaimer: The views and investment recommendations of brokerages and experts cited here are their own. Readers are advised to consult certified financial advisors before making any investment decisions.