Large Cap Defence Stock Hits All-Time High After Bagging ₹65,000 Cr Order

HAL‘s share price shot up sharply on Friday afternoon after the announcement of the major order made headlines.

What Happened: The Defence Ministry has placed an order with HAL for 97 LCA Mark 1A fighter jets, a deal worth over ₹65,000 crore. This procurement is aimed at replacing the Indian Air Force’s outdated MiG-21, MiG-23, and MiG-27 fleets. The LCA Mark 1A jets, an upgraded version of the Tejas aircraft, boast advanced avionics, radar systems, and over 65% indigenous content.

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This strategic move follows a comprehensive review of the indigenous fighter jet programme by Air Chief Marshal VR Chaudhari. This would be the largest order placed by the Indian government for indigenous military hardware.

The stock that was muted today, shot up sharply, going up over 2.5% to hit a new all-time high of ₹3,653.

This historic procurement comes on the heels of HAL’s recent agreement with the Defence Ministry to modernize 25 Dornier aircraft for the Indian Navy, a project valued at ₹2,890 crore.

Price Action: HAL’s share price was up 1.12% to trade at ₹3,605.20 on Friday afternoon.

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