HAL Shares in Focus Today: Received Order of ₹26,000 from Indian Air Force

On September 03, 2024, the shares of Hindustan Aeronautics Limited (HAL) are in focus as the Cabinet Committee on Security gave the green light to the proposal to procure 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of the Indian Air Force (IAF) on September 02.

The said contract awarded to Hindustan Aeronautics Limited (HAL) covers a cost of over ₹26,000 crore, inclusive of all taxes and duties. The delivery of these aero-engines would start after one year and be completed over 8 years.

As per the release, the engines will have an indigenous content of over 54%, enhanced due to the indigenisation of some key aero-engine components. These would be manufactured at HAL’s Koraput division. The Su-30 MKI is one of the IAF’s most powerful and strategically significant fleets. HAL’s supply of these aero-engines would meet the IAF’s fleet sustenance requirement to continue unhindered operations and strengthen the country’s defence preparedness.

Last Month, the defence PSU assured the Indian Air Force that it would deliver 16 LCA Mk1A jets in the financial year 2024 – 2025 and 83 by the financial year 2029. The first delivery was scheduled for March 31, 2024, but after multiple delays, the timeline has now been pushed to November 2024.

Later in August, during Defence Minister Rajnath Singh’s visit to the US, both the US and India signed the Securities of Supplies Agreement (SOSA).

On August 30, 2024, Hindustan Aeronautics Limited (HAL) signed an airframer contract with SAFHAL Helicopter Engines Pvt. Ltd (SAFHAL) to commence joint design, development, manufacture, supply, and support of a new generation high-power engine named ‘Aravalli’ for the 13-ton Medium-Lift class Indian Multi-Role Helicopter (IMRH) and the Deck-Based Multi-Role Helicopter (DBMRH), being designed and developed by HAL.

On September 03, 2024. Hindustan Aeronautics shares zoomed over 3% after opening at ₹4,925.00. Hindustan Aeronautics shares delivered a return of 48.01% and 72.12% in the past 6 months and 1 year, respectively.

About Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics is engaged in the business of manufacturing Aircraft and Helicopters and Repair and maintenance of Aircraft and Helicopters. HAL plays a strategic role in India’s defence program being the only Indian company having specialisation in aircraft manufacturing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.