Rs 82,000 crore order book and FIIs increase stake: This multibagger aerospace & defense company signs contract with Airbus!
Shares of this company gained more than 30 per cent in the last six months.
Hindustan Aeronautics Limited and Airbus have signed a contract to establish a civil MRO facility for the A-320 family of aircraft in Nashik, India. This collaboration will strengthen the Make-in-India mission by achieving self-reliance in the aircraft MRO industry. Airbus will supply the A320 family tool package and offer consulting services to HAL to establish the MRO facility. The facility is expected to be operational by November 2024 and will cater to the growing demand for MRO services in India and the Asian region.
HAL has also formed a joint venture called Safhal Helicopter Engines Private Limited with Safran Helicopter Engines to design, develop, certify, produce, sell, and support helicopter engines, with a focus on engines for the Indian Multi-Role Helicopter (IMRH) and Deck Based Multi-Role Helicopter (DBMRH) projects.
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Hindustan Aeronautics also reported robust Q2FY24 results, with net sales growth of 9.54 per cent to Rs 5,635.70 crore. The operating profit increased by 6.18 per cent, and net profit stood at Rs 1232.29 crore, up 1.1 per cent from the previous year's same quarter.
HAL is engaged in the business of designing, development, manufacturing, repairing, overhauling, upgradation and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The Company was set up to meet the requirements of the Indian Defence Forces (namely Indian Airforce, Indian Navy, Indian Army and Coast Guard) in the area of Aerospace. HAL has an order of Rs 82,000 crore.
The stock has delivered multibagger returns of over 400 per cent in the last three years. Additionally, FIIs increased their stake in the company in September 2023.
Disclaimer: The article is for informational purposes only and not investment advice.
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