Shares of Hindustan Aeronautics Ltd jumped over 4% in Friday's trade after the company bagged order worth ₹32,000 crore from the defence ministry for 60 Utility Helicopter (Maritime) choppers.
The defence ministry approved proposals on Thursday for the purchase of various weapon systems by the Indian armed forces, totaling Rs. 70,500 crore.
The Indian Navy has put forth more than ₹56,000 crore worth of proposals, the majority of which concern its own BrahMos missiles, Shakti electronic warfare (EW) systems, Utility Helicopters-Maritime, etc.
As per officials, the Defence Acquisition Council has granted its approval for proposals to buy 60 Made-in-India Utility Helicopters (Maritime) and BrahMos supersonic cruise missiles for Indian Navy, 307 Advanced Towed Artillery Gun Systems (ATAGS) howitzers for Indian Army and 9 Advance Light Helicopters (ALH) Dhruv choppers for Indian Coast Guard.
On March 10, the defence ministry signed a deal with the company for the purchase of six Domier-228 aircraft for the Indian Air Force.
Due to a positive announcement by the government on the sector, other defence stocks such as Bharat Electronics Ltd, Bharat Dynamics Ltd, Data Patterns India Ltd, Bharat Forge Ltd and Astra Microwave Products Ltd were all trading in the green zone.
"Overall view is positive where buy on dip would be advised. ₹2,700 is support whereas ₹2,950 - ₹3,000 is immediate resistance zone," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
The stock has made a new 52-week high in the past seven days, and the stock price rose 92.3% and outperformed its sector by 52.1% in the past year.
According to a MintGenie poll, 8 analysts on an average recommend 'strong buy' for the stock.