Hindustan Aeronautics Ltd.HAL₹4,785.70 +0.22%

Hindustan Aeronautics Ltd. announced the signing of a massive contract with the Ministry of Defence (MoD) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A for the Indian Air Force (IAF). The deal, valued at over ₹62,370 crore (excluding taxes), represents a landmark moment for India’s aerospace industry and a tremendous vote of confidence in HAL’s manufacturing capabilities.

The order includes 68 fighter aircraft and 29 twin-seat trainers, along with all associated equipment. Deliveries of these state-of-the-art jets are slated to commence during the 2027-28 fiscal year and will be completed over a period of six years. This significant contract is a major fillip to HAL’s order book, ensuring long-term revenue visibility and a rapid ramp-up in production.

The LCA Mk1A, the most advanced variant of the indigenously designed and manufactured fighter aircraft, is a flagship project for the Aatmanirbharta (self-reliance) initiative. This new batch of aircraft will feature an enhanced indigenous content exceeding 64%, a substantial increase over the previous 2021 contract.

HAL estimates that this six-year production run will generate close to 11,750 direct and indirect jobs per year. This massive employment opportunity will provide a crucial boost to the domestic aerospace and manufacturing sectors, fostering skills and capacity building across our entire supply chain.

Over the last three and five years, this stock has delivered multibagger returns of more than 290% and 1,145%, respectively.

Let’s take a look at its Factor Analysis scores: 

Note: The stock prices mentioned are as of 12:44 pm.

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