By Gunjan Rajput

Copyright republicworld

Hindustan Aeronautics Limited (HAL) achieved a major milestone with the first flight of its 13th Light Combat Aircraft (LCA) Mk1A this week. This comes as the company targets delivery of 12 aircraft by FY26, easing concerns about delays in replacing India’s ageing MIG-21 fleet.According to CLSA, the development “should put to rest any concerns regarding HAL’s role in the delay,” as the bottleneck was caused by late engine supplies from General Electric (GE). The US-based engine maker has committed to providing 12 engines in 2025 and 20 in 2026, crucial for final aircraft deliveries.Repeat Order Worth Rs 67,000 Crore on the HorizonThe Ministry of Defence has approved HAL’s biggest-ever order,97 LCA Mk1A fighters worth ₹67,000 crore ($7.8 billion). Placement of this repeat order hinges on HAL delivering the first two fully armed Mk1A jets on schedule. CLSA estimates this order could add 35% to HAL’s robust $22 billion backlog.“This order also proves the delay was no fault of HAL, as it was caused by a delay in engine supply from GE,” the brokerage said.HAL Share Price Target Raised to Rs 5,436HAL currently trades at Rs 4,723.90 (as of September 24, 2025), and CLSA has maintained its Outperform rating with a target price of ₹5,436. This reflects a 15% potential upside.“HAL trades at a deserved premium to global aerospace peers given its Make-in-India pipeline and market access, while it remains the cheapest pure-play defence stock,” CLSA’s Bharat Parekh noted in the report.Decadal Growth Pipeline Boosts Investor ConfidenceHAL’s long-term order pipeline remains strong, with a decadal visibility of $54 billion. Key catalysts include a large fighter aircraft order in 2025, LUH and ALH helicopters, and the SU-30 upgrade programme. With a 20%+ return on equity and a near-monopoly in India’s defence manufacturing, HAL continues to be a top beneficiary of the government’s self-reliance push.CLSA projects HAL’s earnings per share to grow at a 15% CAGR over FY25–28, supported by its integrated design-to-production capabilities, after-market business, and a strong net-cash position.Investor TakeawayWith the Tejas Mk1A milestone, HAL’s execution capability has been reinforced. The upcoming Rs 67,000 crore order, strong government support under “Make in India,” and steady earnings growth underpin CLSA’s bullish view on the stock. For investors, HAL’s share price target of Rs 5,436 suggests a strong runway for growth.Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.Read More – Switch To UPS By Sept 30 Or Lose Guaranteed Pension Benefits: Details