Shares of this large-cap defence stock jumped approximately 3 percent in Friday’s trading session after the company received a tender from the Ministry of Defence worth Rs 65,000 crores. In the past month, the company’s stock gained close to 20 percent for its stakeholders.
With a market capitalization of Rs 2.43 lakh crores, the stocks of Hindustan Aeronautics Limited started their trading session on Friday at Rs 3,564.65 and closed the session at Rs 3,637.90. The company’s scrip witnessed an intra-day high price of Rs 3,677 exhibiting a gain of approximately 3 percent compared to the previous close of Rs 3,564.65 apiece.
Such sharp share price movements were observed today after the company received a tender worth Rs 65,000 crores from the Indian Defence Ministry.
The tender has been made for purchasing 97 LCA Mark 1A fighter jets, an advanced version of the ‘Tejas’ aircraft. According to various reports, the large-cap defence company has been given three months to respond to the same. The LCA Mark 1A comprises more advanced radars and avionics than the initial 40 LCAs that the Indian Air Force (IAF) will get.
Furthermore, the company, as per sources, is also poised to secure deals for over 200 LCA Mark 2s and a similar number of fifth-generation Advanced Medium Combat Aircraft.
The indigenous fighter aircraft programme supported by the Central Government is also poised to boost indigenisation and benefit the small and medium enterprises (SMEs) in the defence sector nationwide.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, witnessed a jump in numbers with the former increasing from Rs 5,636 crores during Q2FY24 to Rs 6,061 crores during Q3FY24, and the latter, keeping the timeframe the same, jumping marginally from Rs 1,235 crores to Rs 1,254 crores.
In addition to the above, the company’s ratio analysis portrays the return ratios, i.e., the return on equity (RoE) as well as the return on capital employed (RoCE), showed a jump in numbers with the former reported at 24.72 percent and the latter at 18.04 percent.
Hindustan Aeronautics Limited (HAL) is engaged in designing, developing, manufacturing, and servicing aircrafts, helicopters, avionics, aero-engines, and aerospace structures within as well as outside India. It provides power plants, composites, and other aerospace products, including tanks, cryogenic engines, structures, and many more.
Written by Amit Madnani
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