HAL shares fell
Thursday was a very heavy day for HAL investors. As soon as the market opened on the morning of 5 February, heavy selling in HAL shares started. The reason behind this decline was the news circulating in the market, in which it was being claimed that a big project of making 5th generation fighter jets for the Indian Air Force may be lost by the company.
According to media reports, HAL is not getting the order to make Advanced Medium Combat Aircraft (AMCA) worth Rs 15,000 crore. This news which came on Wednesday showed its results on Thursday also. Investors fear that if such a big order is lost, the company’s future profits will be affected. This was the reason that a big fall in the company’s shares was recorded for the second consecutive day. On Wednesday also the stock had fallen by about 6% and on Thursday also this trend did not seem to be stopping.
Loss of more than Rs 250 on every share
HAL shares closed at Rs 4,217.10 on the National Stock Exchange (NSE) on Wednesday. But amid bad news, it opened at Rs 4,121.00 on Thursday and within no time it fell to a low of Rs 3,952.00. This means that compared to the previous day, investors had to suffer a loss of about Rs 265 on a single share. Talking about the last five trading sessions, the stock has fallen by more than 13%.
The company came forward to clarify
Amidst this chaos in the market, Hindustan Aeronautics Limited has tried to clarify its position. The company said through an exchange filing that it has not yet received any official information regarding its exclusion from the AMCA project. The company says that they cannot comment on the speculations going on in the media. The management has assured investors that they are working with complete transparency.
Along with this, the company also presented the outline of its future plans. According to HAL, they have a revenue roadmap ready till the year 2032. Many big projects like Indian Multi Role Helicopter, LCA Mk2 and Combat Air Teaming System are on the right track. Apart from this, the company is now working towards making aircraft not only for the army but also for the common citizens so that new avenues of earning can be opened.
Tata and Bharat are at the forefront of the forge race.
If this project does not remain with HAL, then who will make this modern fighter jet of the country? Media reports are indicating that the government can now express confidence in private companies. Tata Group is being considered a strong contender in the race to achieve this Rs 15 thousand crore project. At the same time, the second big name is of Kalyani Group. Bharat Forge Limited, a Kalyani Group company, has formed a consortium with BEML and Data Patterns.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.