{"id":45108,"date":"2024-09-10T16:37:58","date_gmt":"2024-09-10T11:07:58","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=45108"},"modified":"2024-09-10T16:59:49","modified_gmt":"2024-09-10T11:29:49","slug":"hal-lands-26000-crore-contract-for-su-30mki-engines-stock-grows-65-in-fy24","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/hal-lands-26000-crore-contract-for-su-30mki-engines-stock-grows-65-in-fy24\/","title":{"rendered":"HAL Lands \u20b926,000 Crore Contract for Su-30MKI Engines: Stock grows 65% in FY24"},"content":{"rendered":"
<\/div>\n

<\/p>\n\n\n\n

Hindustan Aeronautics Limited (HAL), one of India\u2019s leading aerospace and defense companies, is in the spotlight after the Indian government signed a massive \u20b926,000 crore contract with the company on 9th September 24. The deal involves the manufacturing and maintaining engines for the Su-30MKI fighter jets, one of the most crucial assets of the Indian Air Force (IAF). <\/p>\n\n\n\n

Following the announcement of this contract, HAL\u2019s shares surged, reaching a high of Rs. 4736.95<\/a>. The contract is expected to raise HAL\u2019s order backlog from \u20b994,000 crore<\/a> to \u20b91.2 lakh crore<\/a>, providing strong revenue visibility at 3.8 times its past 12-month revenue. While HAL’s stock has dipped 1.5% in the past month, it has surged 65% in 2024.<\/p>\n\n\n\n

\"\"
Source: NSE<\/a><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Hindustan Aeronautics Limited\u2019s  Financial Performance<\/strong><\/h2>\n\n\n\n
Market Cap (In Crores as of 10.9.24)<\/strong><\/td>PE Ratio<\/strong><\/td>1 Year Performance (In %)<\/strong><\/td>Net Proft (In Crores)<\/strong><\/td><\/tr>
Rs. 314,524<\/td>48.86<\/td>128.37<\/td>7,594<\/td><\/tr><\/tbody><\/table>
Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n

According to a Ministry of Defence press release, Hindustan Aeronautics Limited will supply 30 aero engines per year, with the full delivery of 240 engines to be completed over the next eight years. HAL will collaborate with India\u2019s defense manufacturing ecosystem during production, including MSMEs and public and private sector companies. By the end of the delivery program, the company aims to increase local content to 63%, with an average of 54% indigenization. This will also enhance the local content in engine maintenance and overhaul.<\/p>\n\n\n\n

Background on HAL and Its Role in India\u2019s Defense Sector<\/strong><\/h3>\n\n\n\n

Hindustan Aeronautics Limited has been a cornerstone of India’s defense manufacturing for decades, pivotal in developing and supplying equipment to the Indian armed forces. The company is known for producing aircraft, helicopters, and related components. Since the early 2000s, it has been responsible for manufacturing the Su-30MKI, a frontline fighter jet for the IAF. The signing of this latest contract further cements HAL’s position as a vital player in India’s defense infrastructure.<\/p>\n\n\n\n

Overview of the \u20b926,000 Crore Contract<\/strong><\/h3>\n\n\n\n