HAL in cruise mode

Shares of Hindustan Aeronautics traded steady after the company announced a Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (UAC) to collaborate on the production of the Sukhoi Superjet-100 (SJ-100) civil aircraft in India.

The stock opened marginally higher at Rs.4,759.00, after a previous close of Rs.4,757.30, touched an intraday high of Rs.4,769.65 and a low of Rs.4,706.25, before stabilising around Rs.4,733.80 (VWAP) amid modest volumes of 14 crore shares traded.

The partnership marks a significant strategic diversification for HAL, traditionally India’s leading military aircraft manufacturer, into civil aviation manufacturing, a domain identified as a national priority under the Make in India and Atmanirbhar Bharat programmes.

The SJ-100, a regional jet designed by UAC, is expected to be indigenised and produced in India, with technology transfer and localised components forming part of the framework. Industry experts view this as a potential catalyst for domestic aerospace ecosystem development, given India’s growing regional air-connectivity demand.

At around Rs.4,735, HAL trades nearly 8% below its 52-week high of Rs.5,166, with a market capitalisation of approximately Rs.3.17 lakh crore. The counter has seen a strong institutional buildup over the past quarter, with defence PSUs continuing to attract inflows from mutual funds and sovereign funds amid record order books and visibility in earnings. While today’s move was range-bound, sentiment remains constructive as HAL steadily executes its Tejas, Dornier, and helicopter platforms alongside emerging civilian initiatives.

The stock remains structurally strong with a robust order pipeline, debt-free balance sheet, and strong government support for aerospace expansion.