The shares of Hindustan Aeronautics Ltd (HAL) surged 7.85% on Monday and surpassed their 52-week high of ₹ 2075 apiece that they touched on August 02, 2022. They reached a fresh 52-week high of ₹ 2174 apiece.
The company’s shares surged by 74.60% in 2022 (year-to-date). This means that if an investor would have invested ₹ 1,00,000 in the shares of the company this year, the value of their holdings would have been ₹ 1,74,600 today.
According to a report by the PTI, HAL is currently working on an AI-driven multi-role, advanced and long-endurance drone for strategic missions in high-altitude areas, including the frontiers with China.
The company signed over a $100 million contract to supply eighty-eight engines/kits and provide maintenance and support services to power the Hindustan Trainer Aircraft (HTT-40).
Further, it has signed an agreement with Safran Helicopter Engines to create a new joint venture intended to develop helicopter engines.
As per schedule, HAL’s board is scheduled to meet on Friday, August 12 to consider financial results for the June quarter (Q1) of the financial year 2023. The company had reported a 90 per cent increase in consolidated net profit at ₹ 3,105 crores, in the January to March quarter, as compared to ₹ 1,628 in the corresponding period for FY21.
“The stability of the military sector during the time of crisis will entice commercial players to diversify into the military sector as a risk mitigation strategy. This will bring opportunities for HAL to diversify into the commercial sector by forming strategic alliances with such companies,” said HAL in its FY22 annual report.
Hindustan Aeronautics Limited repairs, overhauls, upgrades and services a variety of products, including aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. Further, the Indian Defence Forces (Air Force, Navy, Army, and Coast Guard) had established HAL to meet their aviation requirements.
Written by Simran Bafna
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