Rs 82,000 crore order book and FIIs increase stake: This multibagger aerospace and defence stock bags Rs 8,073 crore order from the Ministry of Defence!
Shares of the company gained more than 50 per cent in the last six months.
The Ministry of Defence (MoD) signed a significant contract with Hindustan Aeronautics Limited (HAL) for the acquisition of 34 indigenously-built Advanced Light Helicopters (ALH) Dhruv Mk III. Approved by the Cabinet Committee on Security (CCS), the combined value of the contracts is Rs. 8,073.17 crore.
This deal marks a major step towards self-reliance in defence manufacturing (Buy Indian-IDDM category). The helicopters will be split between the Indian Army (25 units) and the Indian Coast Guard (9 units). The Army's ALH Dhruv Mk III UT (Utility) variant is designed for high-altitude operations like search and rescue, troop transport, and casualty evacuation. The Coast Guard's ALH Mk III MR (Maritime Role) variant is optimized for maritime patrol, search and rescue, and cargo/personnel transport.
Also read, Market Timing Myth Busted: Strategies for Long-Term Investment Success
Recently, Hindustan Aeronautics Limited (HAL) also signed a contract worth Rs. 5,249.72 crore to manufacture and supply RD-33 aero engines for MiG-29 aircraft of the Indian Air Force (IAF). This deal, part of a larger Rs. 39,125.39 crore defence procurement package, aims to support the IAF's MiG-29 fleet and boost indigenous capabilities. The company has an order book of Rs 82,000 crore and FIIs increased their stake in the company in December 2023.
HAL is engaged in designing, developing, manufacturing, repairing, overhauling, upgrading, and servicing a wide range of products including aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures. The stock has delivered multibagger returns of over 450 per cent return in the last three years.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Related articles
-
Promoters sold 13,34,208 shares while FIIs bought 8,21,215 shares & DIIs bought 2,50,252 shares: Defence company announces 1:2 stock split
-
Rs 22,500 Crore Order Book: Defence Ship Building Stock Jumps 8.4 Per Cent with Heavy Volume on June 06
-
Indian Markets Open Lower as Weakness in Metals and IT Stocks Offsets Growth Optimism
-
President of India’s portfolio gains Rs 7494,53,34,777 in just 1 day from this multibagger defence stock with strong order book of Rs 71,650 crore; Hit 52-week high
-
Rs 71,650 Crore Order Book: Multibagger Defence Stock Jumps After Registering a Growth of 32 Per Cent in PAT during FY 2024-25. and 90 Per Cent Dividend