Rs 82,000 crore order book and FIIs increase stake: This multibagger aerospace and defence stock bags Rs 8,073 crore order from the Ministry of Defence!
Shares of the company gained more than 50 per cent in the last six months.
The Ministry of Defence (MoD) signed a significant contract with Hindustan Aeronautics Limited (HAL) for the acquisition of 34 indigenously-built Advanced Light Helicopters (ALH) Dhruv Mk III. Approved by the Cabinet Committee on Security (CCS), the combined value of the contracts is Rs. 8,073.17 crore.
This deal marks a major step towards self-reliance in defence manufacturing (Buy Indian-IDDM category). The helicopters will be split between the Indian Army (25 units) and the Indian Coast Guard (9 units). The Army's ALH Dhruv Mk III UT (Utility) variant is designed for high-altitude operations like search and rescue, troop transport, and casualty evacuation. The Coast Guard's ALH Mk III MR (Maritime Role) variant is optimized for maritime patrol, search and rescue, and cargo/personnel transport.
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Recently, Hindustan Aeronautics Limited (HAL) also signed a contract worth Rs. 5,249.72 crore to manufacture and supply RD-33 aero engines for MiG-29 aircraft of the Indian Air Force (IAF). This deal, part of a larger Rs. 39,125.39 crore defence procurement package, aims to support the IAF's MiG-29 fleet and boost indigenous capabilities. The company has an order book of Rs 82,000 crore and FIIs increased their stake in the company in December 2023.
HAL is engaged in designing, developing, manufacturing, repairing, overhauling, upgrading, and servicing a wide range of products including aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures. The stock has delivered multibagger returns of over 450 per cent return in the last three years.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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