Hindustan Aeronautics shares surged on Tuesday morning session as brokerage UBS maintained its "buy" call on the stock and hiked the target price for the stock. 

What Happened: UBS maintained their "buy" call on the scrip and hiked the target price to ₹5,200 from ₹3,600. This implies a 32% upside from the previous day's closing price. The brokerage sees the order book and delivery run rate for the defense stock increasing, which will bring stable profitability. 

According to UBS analysts, the company's order book is expected to triple and manufacturing revenue will grow by 25%. The order book growth will mainly include large military orders due to  "a depleting fleet, a robust supply chain and ready capacity". 

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The brokerage also pointed out that the street's concerns about production ramp-up are misplaced. UBS expects an order win of ₹5.3 lakh crore over FY24-28, resulting in the order book quadrupling by FY28. 

Previously, Nomura also initiated coverage on HAL with a "buy" call and a target price of  ₹4,750. Nomura underlined the company's strong moat in the fighter aircraft and helicopter space. 

Price Action: Shares of HAL surged over 2% to ₹4,013.70 in the morning session. 

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