Shares of this large-cap company jumped around 4 percent in Thursday’s trading session after receiving an order worth Rs. 8,073 crores from Ministry of Defence. The shares have delivered a multibagger return of 126 percent to its shareholders in one year.
With a market capitalization of Rs. 2,10,912 crores, the shares of Hindustan Aeronautics Ltd started Thursday’s trading session on a higher note at Rs. 3,053.95 compared to its previous close of Rs. 3,039.50. During the trading session, the shares hit a high of Rs. 3,158, gaining around 4 percent and are currently trading at Rs. 3,136 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the Ministry of Defence signed two contracts for a combined value of Rs 8,073.17 crores with the company for the acquisition of 34 Advanced Light Helicopters (ALH) Dhruv Mk lllalong with Operational Role Equipment for Indian Army (25 ALHs) and Indian Coast Guard (09 ALHs).
Furthermore, they mentioned that the project will generate employment of an estimated 190 Lakh Man-Hours during its duration. It will also entail a 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, thus furthering the vision of ‘Aatmanirbhar Bharat’.
Coming onto the company’s financial statement, the revenue increased by 8 percent from Rs. 5,636 crores during the September quarter to Rs. 6,061 crores in the December quarter. In addition, the net profits increased marginally by 1.5 percent from Rs. 1,235 crores to Rs. 1,254 crores during the same timeframe.
As of May 2023, Hindustan Aeronautics Limited has an order book worth Rs. 81,784 Crores, which consists of Manufacturing Contracts, Repair and Overhaul, Design and Development Projects, supply of spares, and exports.
Furthermore, it has a strong customer base that consists of the Indian Air Force, the Indian Navy, the Indian Coast Guard, ISRO, DRDO, and Some of the international clients are Airbus Industries, Boeing, GE Aviation, Honeywell International, Rolls Royce Plc, and many more.
Headquartered in Bangalore, Hindustan Aeronautics was incorporated in 1963. The company is engaged in the business of manufacturing Aircraft and Helicopters and repairing, and maintenance of Aircraft and Helicopters. They are the Indian government’s prime manufacturer of defence machinery in the Aeronautic segment.
Written By Vaibhav Patil
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