HAL share price hits fresh 52-week high on approval of equipments acquisition worth Rs 8,722 cr

By: |
August 12, 2020 12:14 PM

HAL stock price has rallied over 151 per cent from March lows of Rs 448 apiece, taking the total market capitalisation of the company to Rs 36,949.82 crore

HAL share price, HAL sharesThe Defence Ministry informed that HAL has handed over the 500th AL-31FP overhauled engine to the IAF

Hindustan Aeronautics Ltd (HAL) share price surged over 10 per cent to hit a fresh 52-week high of Rs 1,126 apiece, a day after the Ministry of Defence approved the capital acquisitions of various platforms and equipment worth Rs 8,722.38 crore required by the Indian Armed Forces. HAL stock price has rallied over 151 per cent from March lows of Rs 448 apiece, taking the total market capitalisation of the company to Rs 36,949.82 crore. “With Hindustan Aeronautics Limited having successfully developed basic trainer aircraft (HTT-40) prototypes and certification process underway, the DAC approved procurement of 106 basic trainer aircraft from HAL to address the basic training requirements of the Indian Air Force (IAF),” Ministry of Defence said. It also added that post certification, 70 BTA will be initially procured from HAL and balance 36 after operationalisation of HTT-40 fleet in IAF.

At 11.40 AM, HAL shares were trading 8 per cent higher at Rs 1,100 apiece, as compared to a 0.17 per cent fall in the benchmark S&P BSE Sensex. On Monday, the Defence Ministry informed that HAL has handed over the 500th AL-31FP overhauled engine to the IAF which is mounted on its most lethal frontline fighter aircraft Su-30MKI.

Among other stocks from Defence and Aerospace sector, Taneja Aerospace & Aviation was up nearly 5 per cent at Rs 32.10 apiece, Reliance Naval and Engineering gained 4.76 per cent to Rs 3.08 apiece, Astra Microwave Products added over 3.5 per cent to Rs 120.65, Bharat Electronics (BEL), was up nearly 4 per cent at Rs 110.35, Apollo Micro Systems rose over 2 per cent to Rs 130.80 and Bharat Dynamics shares were trading 2.84 per cent higher at Rs 437 apiece.

On August 10, Defence Ministry Defence put an embargo on the import of 101 defence weapons and equipment to boost indigenisation which will help the country to become ‘Atmanirbhar’ in defence production. “With the embargo on the import of 101 items, it is estimated that contracts worth almost Rs 4.0 lakh crore will be placed upon the domestic industry within the next five to seven years,” ICICI Securities in a note dated August 10. It further added that of these, items worth almost Rs 1.3 lakh crore each are anticipated for the Army and the Air Force while items worth almost Rs 1.4 lakh crore are anticipated by the Navy over the same period.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1The Phoenix Mills Rating: buy Funds from potential deal may aid growth
2Shriram Transport Finance Corporation Rating: hold Improvement in core business continues
3Sensex closes above 45k, Nifty ends at 13,258 on RBI boost