Shares of Hindustan Aeronautics Ltd (HAL) rallied 5.1 percent on Friday, March 31, after its Nashik division bagged an order from the defence ministry to manufacture HTT-40 basic trainer aircraft for the Indian Air Force (IAF).
The announcement regarding the same was made by the Union Minister of State for Health and Family Welfare, Bharti Pawar, who is also the Member of Parliament (MP) from the Dindori constituency.
The stock opened at a price of Rs. 2,719 per share against the previous close of Rs. 2,706.75 per share and surged to touch an intraday high of Rs. 2,846.
It was trading at ₹2,791.50 apiece, up by 3.13 percent, at 11:50 a.m. on the NSE.
The stock touched a 52-week high of Rs. 2,914 on March 13, 2023, and a 52-week low of Rs. 1,381 on March 28, 2022, indicating that at the current level, the stock is trading over 102 percent above its 52-week low and just 4.2 percent below its 52-week high.
The stock has increased nearly 9 percent in the last one month. Moreover, in the past six months, it has gained over 19 percent. Furthermore, the stock has yielded a positive return of almost 88 percent in the last one year.
The Indian Air Force (IAF) will be procuring the HTT-40 aircraft at a cost of over ₹6,800 crore and the Defence Public Sector Unit (PSU) has been given six years to supply them. The aircraft will be manufactured at both Nashik and Bengaluru, boosting the economic growth of the region and the ancillary units.
The HTT-40 is a turboprop aircraft which is designed for good low-speed handling qualities and to provide better training effectiveness. This fully aerobatic tandem-seat turbo-trainer has an air-conditioned cockpit, modern avionics, hot refueling, running change over and zero-zero ejection seats.
It will help meet the shortage of basic trainer aircraft of the IAF for the training of newly inducted pilots. The procurement will include associated equipment and training aids including simulators.
The company has announced plans to engage Indian private industry and Micro, Small and Medium Enterprises (MSMEs) as part of its supply chain. This move is expected to create direct employment for over 1,500 personnel, and indirect employment for up to 3,000 people, spread over more than 100 MSMEs.
Hindustan Aeronautics Ltd. is a large-cap company with a market capitalisation of ₹83,278.09 crore engaged in the defence sector. Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers in the world, its website shows.
According to a MintGenie poll, 8 analysts o an average have a ‘BUY’ call on the stock.
