Rs 82,000 crore order book and FIIs increase stake: This multibagger aerospace and defence stock bags Rs 5,249 crore order from the Ministry of Defence!

Shares of the company gained more than 50 per cent in the last six months.

Hindustan Aeronautics Limited (HAL) has 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 engines will be produced under a technology transfer agreement and will involve indigenization of critical components, reducing reliance on foreign suppliers for future maintenance and repairs. This project aligns with the government's "Aatmanirbhar Bharat" initiative, promoting self-reliance in the defence sector.

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Other contracts include a Rs. 7,668.82 crore deal with Larsen & Toubro (L&T) for procuring Close-in Weapon Systems (CIWS) for air defence purposes. L&T also secured a Rs. 5,700.13 crore contract for high-power radars (HPR) to replace existing long-range radars with advanced features, significantly enhancing the Air Force's terrestrial air defence capabilities.

Overall, HAL's impressive growth, coupled with its strategic importance in the national security landscape, positions the company as a compelling investment opportunity for those seeking long-term capital appreciation. 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 490 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.