Shares of Hindustan Aeronautics rise on signing an LoI with Argentina’s Defence Ministry!

The Indian benchmark indices started the session sharply lower, dragged down by massive losses in IT sector stocks. BSE Information Technology was the worst-performing sector, with losses of around 3.8%, while shares of Infosys tumbled more than 7%. BSE Capital Goods impressed investors with gains of more than 1%, led by a strong rally in shares of Suzlon Energy Ltd. 

Shares of Hindustan Aeronautics Ltd gained in an otherwise weak market after the company announced that it and the Ministry of Defence of the Republic of Argentina had signed a Letter of Intent (Lol) on productive cooperation and the acquisition of light and medium utility helicopters for the armed forces of the Argentina Republic. 

Shares of Hindustan Aeronautics Ltd gained momentum on Friday, touching an intraday high of Rs 3,894 per share on the BSE. Shares of the company have gained around 54% in the past six months and have delivered nearly 110% returns over the last year.  

Considering the company’s quarterly performance, on a consolidated basis, it reported a modest growth of 8.1% from Rs 11,558.23 crore registered in Q4FY22, recording total revenue of Rs 12,494.67 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it declined 8.82% from Rs 3,105.17 crore to Rs 2,831.18 crore.       

Hindustan Aeronautics Ltd (HAL) is a state-owned aerospace and defence company that manufactures, repairs and maintains aircraft and helicopters. The company actively participates in and makes a contribution to the country’s space programs. In 1988, a separate aerospace division was established. Through the division, HAL is now fulfilling the requirements of structures for ISRO satellites and aerospace launch vehicles.  

Considering the promising outlook for the industry and the potential for the company to grow, keep a close eye on this stock in the upcoming sessions.  

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.