HAL Share Price Rises After Rs 62,370-Crore Contract With Ministry Of Defence

The share price of Hindustan Aeronautics Ltd., rose nearly 1% during early trade after the Ministry of Defence on Thursday signed a Rs 62,370-crore contract with the company. This deal is for the procurement of 97 LCA Mk1A aircraft for the Indian Air Force.

The deal includes 68 fighters and 29 twin seaters, along with associated equipment, for the Air Force, the Ministry of Defence said on Thursday. The delivery of these aircraft would commence during fiscal 2027-28 and be completed over a period of six years.

The aircraft will have an indigenous content of over 64%, with 67 additional items incorporated, over and above the previous LCA Mk1A contract that was signed in January 2021.

The project is being supported by a robust vendor base of nearly 105 Indian companies directly engaged, said the Ministry of Defence.

According to the ministry, the integration of advanced indigenously developed systems such as the UTTAM Active Electronically Scanned Array Radar, Swayam Raksha Kavach, and control surface actuators will help strengthen the Aatmanirbharta initiatives.

After decades of making combat aerial equipment, HAL will soon manufacture the Small Satellite Launch Vehicle (SSLV) rockets developed by ISRO. HAL had become the successful bidder for the manufacturing and design technology in June.

HAL stock rose as much as 0.99% during the day to Rs 4,822.3 apiece on the NSE. It was trading 0.18% higher at Rs 4,783.6 apiece, compared to an 0.30% decline in the benchmark Nifty 50 as of 9:26 a.m.

It has risen 9.13% in the last 12 months and 14.66% on a year-to-date basis. The relative strength index was at 54.

Eighteen out of the 22 analysts tracking the company have a 'buy' rating on the stock, two recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 5,618.9, implying a upside of 16.7%.