By Admin 
Hindustan Aeronautics Limited: Shares of defense sector company Hindustan Aeronautics Limited (HAL) fell by more than 6 percent in early trade on Thursday. This is the second consecutive session when Hindustan Aeronautics shares have seen a decline.
This fall in shares came after media reports which said that this government defense company has not been shortlisted to develop and manufacture the next generation fighter jet. With this, this PSU defense stock fell by 6.28 percent to Rs. 3,952.00 per share on BSE. HAL’s share price has seen a decline of more than 11 percent in two sessions.
Why is this defense stock continuously falling?
According to a report in Hindustan Times, HAL has been dropped from the race to develop next-generation fighter aircraft under the Advanced Multirole Combat Aircraft (AMCA) programme. Tata Advanced Systems Limited, Larsen & Toubro and Bharat Forge have been shortlisted for this project. Hindustan Aeronautics had also bid for this, but now it is out of this race. This development proved negative for Hindustan Aeronautics Limited. However, this was already expected considering the company’s large order book and the delay in delivery of LCA Mk1A (Light Combat Aircraft Mark 1A).
full of brokerage
Brokerage firm Morgan Stanley has reduced HAL shares from equal weight to underweight and reduced the target price to Rs 3355 per share from earlier Rs 5092, which is more than 20 percent less than its closing price on Wednesday.
Morgan Stanley also believes that there is a risk of decline in HAL’s stock price as competition in the private sector has increased and the pace of work has slowed down due to increasing dependence on imports.
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