HAL Share Price Rises After Winning Bid To Make Small Rockets For ISRO
HAL will be making two small rockets for ISRO in the next two years.
Shares of Hindustan Aeronautics Ltd. rose nearly 2% on Friday after it won a bid to make small rockets for Indian Space Research Organisation.
The aerospace and defence company will be making two small rockets for ISRO in the next two years, Indian National Space Promotion and Authorisation Centre Chairman, Pawan Goenka, said in a press conference according to a report by Bloomberg.
This comes a day after the company announced that its board is set to meet on June 27 to consider the final dividend for financial year 2025. This marks the second dividend that HAL will issue this fiscal. The defence PSU had paid an interim dividend of Rs 25 per share in February.
The government signed two contracts worth Rs 62,700 crore with HAL in April, for 156 light combat helicopters Prachand for the armed forces. Preceding this, the company received the first of the nearly hundred F404-IN20 engines from US defence major GE Aerospace for the Tejas Light Combat Aircraft Mk-1A variant after years of delay.
Analysts at JPMorgan said the estimated order book in the financial year ending March 31, 2025, stood at Rs 1.9 lakh crore. The focus will now be on the pace of execution of orders.
Moreover, new contracts such as for Su-30MKI upgrade, Tejas Mk2 variant, multi-role helicopters and advanced medium combat aircraft might land on HAL as the sole domestic supplier.
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Hindustan Aeronautics Share Price Today
Shares of HAL rose as much as 1.58% to Rs 4,980 apiece, the highest level since June 19. They pared gains to trade 1.14% higher at Rs 4,956.90 apiece, as of 2:42 p.m. This compares to a 1.02% advance in the NSE Nifty 50.
The stock has fallen 6.26% in the last 12 months and risen 18.66% year-to-date. Total traded volume so far in the day stood at 2.74 times its 30-day average. The relative strength index was at 52.92.
Out of 20 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.9%.
