HAL gets a big order of ₹ 62,000 crore
The government has taken a big decision to promote fighter aircraft made in the country. According to a CNBC report, the Cabinet Committee on Security Affairs (CCS) has approved the purchase of 97 Tejas MK 1A aircraft from Hindustan Aeronautics Limited i.e. HAL. The total price of this deal is said to be around ₹ 62,000 crore. This is a huge order for HAL. Tejas aircraft are made entirely in India and this decision is an important step towards strengthening the country’s defense capacity and ‘Make in India’. At the same time, the reason for this news is being estimated to increase the shares of HAL.
Share may get so fast
A large brokerage house like Motilal Oswal has advised to buy HAL. He says that the company’s shares are still getting at a good price and in the coming time, it can see an increase of about 32 percent. Brokerage also believes that HAL’s earnings can lead to a tremendous bounce with the onset of delivery of Tejas aircraft. Along with this, HAL’s order book is also looking very strong, including repair and overhaul work.
Engine supply is also on track, production will rise
The engine that is installed in the Tejas aircraft is being supplied by the US company GE. HAL has already got two engines and now it is planned to send two engines every month. This will speed up the construction of Tejas aircraft. Apart from this, private companies like L&T have also been involved in this work. The first batch of wing assembly has been prepared. That is, now the construction of Tejas will be faster.
HAL’s quarterly results were also great
Recently HAL released its first quarter results. Profit has decreased slightly but revenue has increased by about 11 percent. The best thing is that the company’s earning quality has improved. The margin has increased to 26.7 percent, which was 22.8 percent last year. After this, HAL shares climbed around 2.65 percent to close at ₹ 4,526.30 in the stock market.
HAL’s entry in space sector also
Apart from this, HAL will not only make fighter aircraft. The company has also stepped into the space sector in collaboration with ISRO. Recently, HAL has entered into a big agreement for Small Satellite Launch Vehicle ie SSLV. Under this agreement, HAL will get full right to make, run and sell SSLV. ISRO will provide technical help for the next two years. This will give HAL a new market and the company’s earnings will open.
According to the stock market experts, HAL can become a strong bet for investors in the coming time. The government’s complete support, strong order books and schemes like Make in India can take HAL to height. Hindustan Aeronautics Limited’s shares closed at Rs 4,452.60 on Tuesday.
Disclaimer:This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.