As tensions between India and Pakistan escalate following Operation Sindoor, Indian defense stocks have surged, with one Public Sector Undertaking (PSU) emerging as a global powerhouse—Hindustan Aeronautics Limited (HAL). The aerospace giant has now surpassed Dassault Aviation, the French manufacturer of Rafale fighter jets, in market valuation, solidifying its position as India’s leading defense player.
HAL: India’s Defense Titan
HAL, India’s largest defense PSU, boasts a market capitalization of $37.34 billion, placing it 11th among the world’s most valuable defense companies. It is now just $3 billion away from entering the top 10 global defense firms, overtaking L3Harris Technologies (USA), which holds a valuation of $40.47 billion.
In contrast, Dassault Aviation, the maker of Rafale fighter jets, ranks 14th globally, with a market valuation of $27.64 billion. The company has witnessed a bearish trend in its stock performance following the India-Pakistan ceasefire agreement, while HAL continues its winning streak.
HAL’s Role in India’s Air Dominance
HAL plays a pivotal role in India’s air superiority, manufacturing key aircraft such as:
- Su-30MKI – Jointly developed with Russia’s Sukhoi Design Bureau, forming the backbone of India’s combat fleet.
- Tejas Light Combat Aircraft (LCA) – India’s first indigenous fighter jet, operational since 2015.
- Advanced Medium Combat Aircraft (AMCA) – India’s upcoming fifth-generation stealth fighter, set to rival global counterparts.
HAL vs. Dassault: Market Trends
During Operation Sindoor, the Indian Air Force (IAF) deployed Rafale fighter jets, launching SCALP and HAMMER missiles on terror infrastructure in Pakistan and Pakistan-occupied Kashmir. Despite Dassault’s critical role in India’s defense strategy, HAL’s indigenous production capabilities and zero-debt status have made it a preferred choice for investors.
Looking Ahead
With HAL on the brink of entering the top 10 global defense firms, investors are keenly watching its trajectory. As India continues to strengthen its self-reliance in defense manufacturing, HAL’s dominance is expected to grow, making it a must-watch stock in the defense sector.
