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HAL Shares Slide After Tejas Crash At Dubai Air Show As IAF Orders Inquiry

Brokerages label the drop a buying opportunity, pointing to Tejas’s large role in HAL’s backlog despite near-term volatility.

Overview

  • HAL fell over 3% in early Monday trade to around Rs 4,434 from Friday’s Rs 4,595 close as investors reacted to the Dubai crash.
  • The Indian Air Force confirmed the pilot’s death in Friday’s accident and said a court of inquiry is being constituted to determine the cause.
  • Tejas comprises about 44% of HAL’s orderbook, with roughly 180 aircraft on order, and reporting notes the incident could prompt inspections or delivery delays.
  • CLSA maintained an ‘outperform’ rating and described the weakness as an opportunity to accumulate shares, with most analysts still positive on the stock.
  • Selling extended across defence counters, with HAL, BEL and Cochin Shipyard down up to 4% and the Nifty Defence index lower by about 1.5%.