HAL Shares Price: PSU stock plunges 8% as aerospace firm misses AMCA fighter jet race

HAL Share Price Target: Shares of Hindustan Aeronautics Limited (HAL), India’s state-owned aerospace and defence giant, nosedived 8 per cent on Wednesday, February 4, after news that the company is no longer in contention to develop India’s next-generation stealth fighter jet under the Advanced Multirole Combat Aircraft (AMCA) programme.HAL, a key constituent of the BSE 100, has a market capitalisation of Rs 2,80,674.84 crore as of February 4. The firm operates under the Ministry of Defence, making it one of India’s prominent public sector undertakings in the aerospace and defence sector.HAL Out of AMCA RaceAccording to The Economic Times, Larsen & Toubro, Bharat Forge, and Tata Advanced Systems have been shortlisted to manufacture India’s next-generation fighter jets, while HAL was excluded from the final list.The final winner for the AMCA programme is expected to be selected within the next three months, following submission of detailed commercial proposals for prototype manufacturing. Shortlisting criteria included technical expertise, manufacturing capabilities, order book position, and financial strength, alongside the ability to absorb the AMCA design and demonstrate experience in development, engineering, manufacturing, integration, and testing. Companies with large outstanding order books were reportedly at a disadvantage, ET said.The selected company will partner with the Aeronautical Development Agency (ADA) to build five AMCA prototypes, with an indicative budget of Rs 15,000 crore earmarked for prototype development. Production orders are expected to be several times larger once the aircraft is successfully inducted into the Indian Air Force.HAL Share Price MovementAs of 1:00 pm on February 4, HAL shares were trading 6.2 per cent down at Rs 4,195.15, having touched an intraday low of Rs 4,100.15 from the previous close of Rs 4,471.95.HAL Stock performanceShares of Hindustan Aeronautics Limited (HAL) have seen mixed performance across timeframes. The stock dropped 9.23 per cent in 1 week and 10.36 per cent over 3 months, but gained 12.58 per cent in 1 year and surged 760.24 per cent over 5 years, reflecting strong long-term growth.How Competitors ReactedLarsen & Toubro Ltd (L&T) traded 1 per cent higher at Rs 4,078, reaching an intraday high of Rs 4,108.Bharat Forge surged over 2 per cent to Rs 1,572.30 following the news.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)