306% return in 2 years: Defence PSU stock gains 5% after Cabinet approves Rs 26,000 crore worth Su-30 MKI aircraft procurement - Details

Defence PSU Stock: Shares of Hindustan Aeronautics Ltd (HAL) surged over 5 per cent on Tuesday as the Cabinet Committee on Security (CCS) has approved the procurement of 240 aero-engines (AL-31FP) for the Su-30MKI aircraft of the Indian Air Force from the company. According to an exchange filing, the deal falls under the Buy (Indian) category and is valued at over Rs 26,000 crore. 

The counter opened gap up at Rs 4925 with a gain of 5.1 per cent from the previous close of Rs 4686.10. Last seen, the counter was trading at Rs 4817 on the BSE. 

The stock has been gaining for the last 3 days and has risen 4.34 per cent in the period.

HAL Share Price History

The shares of HAL have given a multibagger return of over 144 per cent in one year and over 306 per cent in two years. So far this year, the counter has already gained over 70 per cent.

HAL Order

"Cabinet Committee on Security, on September 02, 2024, approved the proposal for procurement of 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of
the Indian Air Force (IAF) under Buy (Indian) category from Hindustan Aeronautics Limited (HAL) at a cost of over Rs 26,000 crore inclusive of all taxes and duties," the company said in an exchange filing.

The delivery of these aero-engines would start after one year and complete over a period of eight years.

The engines will have an indigenous content of over 54 per cent, enhanced due to the indigenisation of some key aero-engine components. These would be manufactured at HAL's Koraput division.

Su-30 MKI is one of the most powerful and strategically significant fleets of IAF. The supply of these aero-engines by HAL would meet the fleet sustenance requirement of IAF to continue their unhindered operations and strengthen the defence preparedness of the country.