HAL Shares Gain After Inking Pact With Defence Ministry To Supply Trainer Aircraft

HAL signed contracts for the procurement of 70 HTT-40 basic trainer aircraft for Rs 6,800 crore.
<div class="paragraphs"><p>Tejas fighter jet, developed by Hindustan Aeronautics Ltd. (Source: Companyw website)</p></div>
Tejas fighter jet, developed by Hindustan Aeronautics Ltd. (Source: Companyw website)

Shares of Hindustan Aeronautics Ltd. gained on Wednesday after an order win from the Ministry of Defence.

The company in New Delhi signed contracts to buy 70 HTT-40 basic trainer planes. The Union Cabinet approved the procurement of these trainer aircraft from HAL at a cost of Rs 6,800 crore on March 1, according to an exchange filing. The aircraft will be supplied over a period of six years.

Shares of the company rose 5.6% to Rs 2,862.5 apiece as of 1:20 p.m., compared to a 0.19% decline in the benchmark Nifty 50. The total traded quantity so far in the day was 3.8 times the 30-day average. The relative strength index stood at 73, indicating that the stock may be overbought.

Of the 10 analysts tracking the stock, nine maintained 'buy', while one analyst recommended 'sell', according to Bloomberg. The 12-month consensus price target implies an upside of 11.5%.


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