On September 3, 2024, the scrip of Hindustan Aeronautics Limited or HAL jumped as much as by a percent to touch an intraday high at Rs. 4925 per share their highest price since October last year ago March.
This major increase came following the Cabinet Committee on Security (CCS) approved purchase of 240 AL-31FP aero-engines for Indian Air Force’s (IAF) Su-30 MKI, subsequent to approval by CCS dated September 2 in year 2024.
HAL will sell the engines to India under its Buy (Indian) category for an all-inclusive cost of over Rs 26,000 crore taxes and duties.
HAL had claimed each of these engines to be with 54 percent indigenous content through successful indigenisation, including for key components. HAL will produce the engines at its Koraput division, with deliveries set to commence a year from approval for an eight-year duration.
The Su-30 MKI is considered by the Indian Airforce as one of their most potent and strategically critical fleets. HAL said that the supply of these engines would cater for fleet operational maintenance, thus enhancing the country’s defence preparedness.
Hindustan Aeronautics Limited or HAL is one of Asia’s largest aerospace companies established in 1940 and headquartered at Bengaluru, India. The Company also includes activities in the production of aircraft, helicopters and their systems.
Indigenous products include the Dhruv helicopter, Tejas light combat aircraft and Hindustan Ambassador car. Even HAL designs and develops new products, upgrades, aircraft/helicopters repair/small overhaul. HAL also makes important parts of satellites.
HAL functions under the union ministry of defence and has factories located in cities including Kanpur, Nasik, Koraput,Korwa, Lucknow, Kasaragod, and Hyderabad.
The company has a market capitalisation of Rs 3,22,055.29 crore as per the Bombay Stock Exchange (BSE), and falls under the category of BSE100
As of 10:33 AM on September 3, HAL shares were trading up by Rs.2.32 at Rs 4,815, while the BSE sensex was down -107 points (-0.13) % at levels of around 82,455. In the last year, HAL stock has surged nearly 48%, while the Nifty 50 was up over 30%.
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