Multibagger defence stock in news today on order win from air force

Shares of Hindustan Aeronautics are in news today after the  Cabinet Committee on Security a proposal for procurement of 240 aero-engines for Su-30MKI aircraft of the Indian Air Force from the aerospace and defence firm at a cost of over Rs 26,000 crore. Hindustan Aeronautics shares closed on a flat note at Rs 4686.10 on BSE on Monday against the previous close of Rs 4,680 on BSE. Market cap of the firm stood at Rs 3.13 lakh crore. 

The multibagger stock has gained 137.66% in a year and gained 295.47% in two years. 

The delivery of these aero-engines will start after one year and be completed over a period of eight years. 

Su-30MKI is one of the most powerful and strategically significant fighter jet fleet of the Indian Air Force (IAF).

The Cabinet Committee on Security on September 2, "approved the proposal for procurement of 240 aero-engines (AL-31FP) for Su-30MKI aircraft of the Indian Air Force (IAF) under Buy (Indian) category from Hindustan Aeronautics Limited (HAL) at a cost of over Rs 26,000 crore inclusive of all taxes and duties," the ministry said.

The engines will have indigenous content of over 54 per cent, enhanced due to the indigenisation of some key components of aero-engines. 

Hindustan Aeronautics Limited is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The company's products include HAWK, light combat aircraft (LCA), SU-30 MKI, intermediate jet trainer (IJT), DORNIER and HTT-40.