HAL Skids After Tejas Crash; Analysts Expect Limited Hit
Shares in Hindustan Aeronautics Limited (HAL) took a downturn following an unfortunate incident involving an Indian Air Force Tejas aircraft, developed by the company, during an aerial show in Dubai. Key details include:
– Stock Performance: On Monday, HAL shares dropped by 3.4% to close at ₹4,440.9. This decline follows a 2.6% drop on Friday, marking the largest fall for HAL since May 20.
– Sector Impact: The Nifty India Defence index experienced a decline as well, finishing 2.5% lower.
– Analyst Insights: Harshit Kapadia, a defense analyst at Elara Securities, suggests the financial impact on HAL’s order book, inflows, and execution will likely be minimal. He noted, While the stock has already seen a sentimental decline, we do not foresee any material financial repercussions.
– Historical Context: Kapadia points out that aircraft crashes occur frequently in the industry, with over seven incidents reported in 2025, including those involving the US F-35 jets. The Tejas crash occurred during a demonstration rather than a mission, which lessens the operational implications.
– Order Resilience: Analysts do not expect the crash to affect scheduled deliveries or orders, including the 83 + 97 units of the LCA Tejas Mk1A.
– Market Trends: Despite recent volatility, HAL shares have decreased by 7.8% over the past month and 11.2% over the last six months, contrasted by declines of 3.3% and 6.4% in the Nifty India Defence index.
In conclusion, while HAL’s share prices face immediate pressure post-crash, analysts predict limited financial fallout, emphasizing resilience in order fulfillment and overall operations.