Shares of Hindustan Aeronautics Ltd. will be in focus today after the Cabinet Committee on Security approved the procurement of 240 AL-31 FP aero-engines from the company.
| Company | Value | Change | %Change |
|---|---|---|---|
| Bajaj Finserv | 1,840.55 | ₹214.85 | 13.22 |
| Bajaj Auto | 11,126.10 | ₹1,211.90 | 12.22 |
| Bajaj Finance | 7,440.05 | ₹696.45 | 10.33 |
| LTIMindtree | 6,153.50 | ₹449.10 | 7.87 |
| HCL Tech | 1,806.65 | ₹130.50 | 7.79 |
The contract is said to be valued at ₹26,000 crore and the deliveries for the same will begin in a year from now. The deliveries are likely to be completed over an eight year period.
Last month, reports had suggested that there is uncertainty over HAL’s delivery timeline for the new Tejas Light Combat aircraft for the current financial year and beyond. This was attributed to the delays in engine deliveries to HAL by General Electric.
The defence PSU had assured the Indian Airforce that it will deliver 16 LCA Mk1A jets in financial year 2024 – 2025 and 83 by financial year 2029. The first delivery was scheduled for March 31, 2024 but after multiple delays, the timeline has now been pushed to November 2024.
Later in August, both US and India signed the Securities of Supplies Agreement (SOSA) during Defence Minister Rajnath Singh’s visit to the US.
Brokerage firm Antique Stock Broking maintained its “buy” recommendation on the stock with a price target of ₹6,145. The brokerage said that this order will further bolster HAL’s already strong order backlog, which stood at ₹94,000 crore at the end of financial year 2024 to ₹1.2 lakh crore.
However, Antique did acknowledge that HAL’s near-term earnings may remain volatile as it continues to face challenges to execute the large Tejas MK I A order.