Hindustan Aeronautics Limited (HAL) and American company General Electric (GE) Aerospace are about to make fighter jet engines in India. According to sources, a formal conversation in this time is going to start soon. The conversation is expected to be completed within the next three months.
Announcement was made in June 2023
The agreement was first announced during Prime Minister Narendra Modi’s visit to the US in June 2023. Under this, GE’s F414 engine will be produced in India, which will be used in Light Combat Aircraft (LCA) MK2. The deal was approved by the US Congress last year. This cleared the way for manufacturing in India.
80% technology transfer
According to the report, GE has agreed to transfer around 80 percent of engine technology to India under partnership. This includes 12 major techniques such as thermal coating, single-crystal turbine blade machining and nozzle guide van production. However, important components like compressor, combination chamber and turbine will not be part of this deal. The engine manufacturing agreement is expected to begin within three years of finalizing.
Hall shares of hal
HAL shares closed at Rs 4,480.00 with a slight gain of 0.13% on Friday. The stock has come down 4.29% in the last 1 month. However, it has given a return of 33.72% in the last 6 months. This year i.e. in 2025 also the stock has gone up 7.43%. HAL’s market cap is Rs 2.99 lakh crore.
Hal’s target price
Antique Stock Broking has given HAL ‘BUY’ rating and has a target price of ₹ 6,360. This is about 42% above Friday’s closed price. This rating is based on the order of 97 additional Tejas MK-1A by CCS and a strong order pipeline of HAL.
This includes upgrades like Alh, Luh, SU-30, RD-33 engines, SU-30. Also, there are future projects like Tejas Mk II, AMCA, TEDBF and IMRH. HAL’s order book in FY25 was ₹ 1.8 lakh crore. It is estimated to increase to ₹ 2.5 lakh crore with a new order.
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