HAL, Rolls-Royce INK deal for Make-in India Adour engine parts; Check HAL stock momentum

Hindustan Aeronautics Limited (HAL) and Rolls-Royce have signed an agreement for Make-in-India Adour engine parts to support Rolls-Royce's international defence customer base. Head Research Deepanshu Bhandari shares more information on this and expectations from the HAL stock. 

The agreement was exchanged between both companies on September 14.   

Through this partnership, Rolls-Royce aims to strengthen the ecosystem for Adour engines in India by building on HAL’s existing capabilities for manufacturing and supporting the Adour engines for Indian customers over several decades, Bhandari added.  

He said that this follows the MoU signed by Rolls-Royce and HAL during the Aero India 2021 to establish an Authorised Maintenance Centre for Adour at HAL to support international military customers and operators.  

Bhandari further added that both the companies have signed the agreement regarding the 'Make in India' engine parts. Now, Adour engine parts will be made in India. HAL stocks have been in a better counter, and now this deal with Rolls-Royce will give an advantage.  

He mentioned that Adour is a type of engine which is used in Jaguar aircraft. To make this in India, HAL has made this deal with Rolls-Royce.

HAL के लिए बड़ी खबर...

रोल्स-रॉयस के साथ किया करार, अब भारत में बनाये जाएंगे ADOUR इंजन पार्ट्स #HAL #Rollsroyce @AnilSinghvi_ @deepdbhandari pic.twitter.com/j0L4IuPKWA

— Zee Business (@ZeeBusiness) September 14, 2021

This is big news for the company. Already moving upward, HAL is expected to rally high in the coming days. After rallying high, the stock is in consolidation mode for the past 7-8 days. The upper resistance is 1,430. The movement it will break the 1,430-level, there will be a flag breakout. And in that flag breakout, the stock will create an upper-level target. Hold the positions for now. Let it break the 1,425-1,430 level. After that Rs 100-150 rally is expected on the HUL stocks, Bhandari added.  

The lower support of the stock is around Rs 1,350-1,370. So, hold the positions now. After the breakout, HAL will show a big upside move, he added.

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He added that Rolls-Royce will expand its capacity through HAL. Both the companies have signed the memorandum of understanding (MoU) at the Aero India Conference, and now they have finalised this here. These engine parts will be made in India. And it will be supplied to Rolls-Royce's customers in India and globally. HAL will provide the platform, whereas Rolls-Royce will share the technology for this.