Rs 1,84,000 Crore Order Book: Multibagger Defence Stock; ALH Army and Air Force Versions Cleared for Operations, Details Inside!
The stock gave multibagger returns of 207 per cent in 2 years and a whopping 1,600 per cent in 5 years.
Hindustan Aeronautics Ltd has announced the clearance for operations of the Advanced Light Helicopter (ALH) Dhruv Army and Air Force versions, as detailed in their media release dated May 1, 2025. This decision follows the recommendations of the Defect Investigation (DI) Committee and is a furtherance to their clarification issued on April 11, 2025. The company has also stated that a time-bound plan for the resumption of operations has been formulated in collaboration with the respective users.
Additionally, HAL has also set up some strategic alliances, for instance, a joint venture with Safran Helicopter Engines and an MoU with General Electric for aero engine manufacturing. The company has a capital expenditure plan of Rs 3,000 crore per annum on average till FY30 to enhance its capabilities and support the defence set up of India.
About the Company
Hindustan Aeronautics Ltd (HAL), is one of the major defence companies in India, which specialises in designing and manufacturing as well as repairing and overhauling aircraft and helicopters. The company has three major operating segments: Manufacturing, Services and Other activities. The company has 20 production and overhaul divisions and nine R&D centres in different parts of India to focus on indigenous programmes like HTT-40 Basic Trainer Aircraft and Light Utility Helicopter (LUH).
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
Hindustan Aeronautics Ltd (HAL) has submitted a provisional unaudited revenue of Rs 30,400 crores for the year ending March 31, 2025, that is marginally higher than Rs 30,381 crores in the previous year. HAL was also impacted by supply chain problems, including the unavailability of engines, which affected LCA deliveries and an accident that affected the delivery of ALHs, but it was able to maintain its revenue by increasing deliveries of other products and services.
The order book of the company has also increased significantly and now stands at Rs 1,84,000 crores, including manufacturing orders worth Rs 1,02,000 crores and ROH orders worth Rs 17,500 crores. HAL has also signed the biggest deal with the Ministry of Defence (MoD) to supply 156 LCH Prachand helicopters for Rs 62,777 crores. The company also made it to the list of prestigious ‘Maharatna’ companies and became the first Defence PSU to do so. With the supply chain issues now being sorted out and new orders to be delivered, HAL is ready for better performance in the next fiscal year.
The stock gave multibagger returns of 207 per cent in 2 years and a whopping 1,600 per cent in 5 years. Investors should keep an eye on this multibagger aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.