HAL Share Price in Free Fall: Two-Day Rout Sparks Fresh Jitters on Dalal Street
The market remains in disbelief over the ongoing free fall of Hindustan Aeronautics Ltd. (HAL). The defence heavyweight crashed another 5.5% on Thursday, February 5, stretching its rout to a bruising two-day slide of nearly 11%. After Wednesday’s 6% wipeout, investors hoping for a bounce were left disappointed. HAL dropped to ₹3,982, making it one of the worst-performing stocks on the Nifty 500. The mood on Dalal Street has shifted to a battlefield over the last few hours. Is this just a sharp correction—or the start of deeper turbulence for one of India’s most closely tracked defence stocks? The upcoming events have now become the centre of attention for everyone.
Morgan Stanley Sends HAL Share Price Tumbling: Price Target Slashed by 34%
Morgan Stanley announced its downgrade of Hindustan Aeronautics Ltd. (HAL) from “equal-weight” to “underweight” after lowering its price target by 34%, from ₹5,092 to ₹3,355. The downgrade signals the potential for another 20% drop from Wednesday’s close, leaving HAL shareholders on edge.
The brokerage identified two main issues that need to be addressed: increasing competition from private companies and difficulties in executing operations due to excessive reliance on imported materials. The stock has already lost 11% over two sessions but now faces another period of intense market evaluation.
Dalal Street is watching closely: is this a temporary shockwave or the start of deeper turbulence for India’s defence giant?
Key Reasons Behind The Downgrade Of HAL
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HAL has outperformed the Nifty by 4% year-to-date
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Consensus price-to-earnings (P/E) multiple declined 15% over the past 12 months
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Rising competition from private defence players
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Slower execution risks
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High import dependence amid rising global defence spending
Impact: These factors could put pressure on HAL’s earnings outlook.
HAL EPS Revisions and Analyst Ratings Overview
| Category | Details |
|---|---|
| EPS Estimates | FY27: Reduced by 2% FY28: Reduced by 5% |
| Analyst Ratings | Buy: 21 analysts Hold: 2 analysts Sell: 2 analysts |
| Insight | Shows divergence between Morgan Stanley’s caution and broader Street sentiment |
HAL Share Price Tumbles on AMCA Exit Concerns
The stock price of Hindustan Aeronautics Ltd. (HAL) experienced a 6% decrease on Wednesday, which created panic among investors on Dalal Street. The company faced its biggest market loss of the day when its value dropped by nearly ₹18,000 crore during a single trading session, leaving investors in shock. The unexpected stock sell-off created uncertainty about HAL’s upcoming business growth prospects and projects, making shareholders anxious. Market analysts are currently evaluating the stock to determine whether the situation represents a short-term problem or an extended period of difficulty for India’s defense industry leader.
HAL Share Price at 12:00 PM
The stock price of Hindustan Aeronautics Ltd. (HAL) reached ₹4,036.00 at midday, showing a decline of ₹181.10, representing a drop of 4.29% from the previous trading session. The stock market experienced continuous selling pressure as investors remained cautious following Morgan Stanley’s downgrade and ongoing concerns over defense projects.
(With Inputs From Reports)
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