HAL Share Price Gains Over 3% After Centre Clears Rs 62,000 Crore Deal To Buy 97 Tejas MK1A

Shares of Hindustan Aeronautics Ltd., rose over 3% on Wednesday after the Centre cleared deal to buy 97 Tejas MK1A. On Tuesday, the Union government cleared a Rs 62,000-crore deal to buy 97 Light Combat Aircraft Mark 1A fighter jets for the Air Force, as per ANI.

According to the ANI report, the final approval for the acquisition will pave the way for Hindustan Aeronautics Ltd. to produce the aircraft. This will be in addition to the 83 LCA Mark 1A fighter jets ordered by the government earlier. The first order was worth Rs 48,000 crore.

The defence PSU also marks the last session for investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date.

Shares of HAL rose as much as 3.42% to Rs 4,605 apiece. It pared gains to trade 2.39% higher at Rs 4,559 apiece, as of 9:29 a.m. This compares to a 0.18% decline in the NSE Nifty 50.

The stock has fallen 3.88% in the last 12 months and risen 9.04% year-to-date. The total traded volume so far in the day stood at 0.81 times its 30-day average. The relative strength index was at 46.94.

Out of 22 analysts tracking the company, 18 maintain a 'buy' rating, two recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 23.6%.