Shares of Hindustan Aeronautics Ltd (HAL) rose nearly 3% in early deals today after the aerospace & defence firm said the defence ministry inked two contracts worth Rs 8,073 crore to buy 34 advanced light helicopters and associated equipment for the Indian Army and the Coast Guard.
Hindustan Aeronautics shares zoomed 2.79% to Rs 3124.95 against the previous close of Rs 3,039.90 on BSE.
Market cap of HAL climbed to Rs 2.08 lakh crore. Total 0.62 lakh shares changed hands amounting to a turnover of Rs 19.14 crore.
The large cap stock rose to a 52-week high of Rs 3428.75 on March 11, 2024 and slipped to a 52-week low of Rs 1237.50 on March 23, 2023.
The state-owned defence firm’s stock is trading neither in the oversold nor in the overbought zone, signals the relative strength index (RSI) of Hindustan Aeronautics which stands at 45.8. Hindustan Aeronautics shares are trading higher than the 100 day, 150 day, 200 day and lower than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages.
“Consequent upon approval of the Cabinet Committee on Security (CCS), the Ministry of Defence signed two contracts for a combined value of Rs 8073.17 crore with Hindustan Aeronautics Limited (HAL), Bengaluru on 13 March 2024 for acquisition of 34 Advanced Light Helicopters (ALH) Dhruv Mk III along with Operational Role Equipment for Indian Army (25 ALHs) and Indian Coast Guard (09 ALHs) under Buy (Indian-IDDM - Indigenously Designed, Developed & Manufactured) category marking a significant move towards indigenisation in defence manufacturing,” said HAL.
The defence ministry described the acquisition of advanced light helicopters under the Indian-IDDM (Indigenously Designed, Developed and Manufactured) category as a significant move towards indigenisation in defence manufacturing.
"The project will generate employment of an estimated 190 Lakh man-hours during its duration. It will also entail supply of equipment from more than 200 MSMEs and 70 local vendors will be involved in the indigenisation process which is likely to have a positive impact on employment generation in this sector," the ministry said.