HAL shares jump up to 4% on bagging ₹1,173-crore order from Cochin Shipyard

State-run Hindustan Aeronautics Ltd shares jumped up to 4% on Monday, April 1, on receiving an order worth ₹1,173 crore from Cochin Shipyard.

The contract is for the supply of equipment and tools for the Indian Navy’s Next Generation Missile Vessei (NGMV) Project, the defence public sector undertaking (PSU) said in a filing to the stock exchanges.

Hindustan Aeronautics Ltd (HAL) shares gained as much as 3.82% to an intraday high of ₹3,454.25 per share on the NSE in morning trade. More than 16 lakh shares changed hands on the NSE with a trading value of ₹551 crore as of 12:10 pm.

HAL shares have soared around 160% in the past year on consistent order flows. The stock hit a 52-week low of ₹1,308.95 per share on March 29, 2023. HAL shares have risen more than 20% in 2024 so far. The stock has given positive returns every year except for 2019.

HAL informed the stock exchanges that it signed a contract with Kochi-based Cochin Shipyard Ltd for the supply of six sets of LM2500 Gas Turbines (GT). HAL will also supply GT Auxiliaries (GTAE), Spares, and Tools under the contract for Indian Navy’s NGMV Project.

The equipment will be supplied from FY 2025-26 to FY 2028-29. The broad consideration or size of the contract is ₹1173.42 crore, according to the filing.

HAL bagged ₹8,073-crore contract from Defence Ministry in March

Last month, HAL won an order worth ₹8,073 crore from the Defence Ministry for 34 Advanced Light Helicopters (ALH) Dhruv Mk III.

The contract was for the supply of helicopters for the Indian Army and the Indian Coast Guard. The Indian Army version of ALH Dhruv Mk III UT is designed for Search & Rescue, Recce, Internal Cargo, Troop Transportation and Casualty Evacuation etc.

HAL had stated that the project was expected to generate business for more than 200 MSMEs and 70 local vendors under the indigenisation process.

Shares of HAL were trading 3% higher at ₹3,426.65 apiece on the NSE at 12:05 pm.