HAL Reaffirms Guidance Amidst Morgan Stanley Downgrade, Stock Plummets 11%

• Hindustan Aeronautics (HAL) stock fell 5.5% on Thursday, following a 6% drop on Wednesday, totaling an 11% decline in two sessions.
• Morgan Stanley downgraded HAL to "under-weight" from "equal-weight" and slashed its price target by 34% to ₹3,355, implying a further 20% downside.
• HAL reiterated its full-year guidance, stating five LCA Mk1A aircraft are ready for delivery and discussions with the Indian Air Force are ongoing.
• Morgan Stanley cited increased private sector competition and potential slower execution due to import dependence as downside risks.
• Reports of HAL being out of the race for India's fifth-generation stealth fighter jet (AMCA) contributed to Wednesday's 6% fall, wiping out ₹18,000 crore in market cap.