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Know why the stock of this government defense company has seen a tremendous jump

Hindustan Aeronautics Share Update: Since the release of the list of 101 military systems and weapons, which will be imported for the next five years by Defense Minister Rajnath Singh, there is a tremendous buying in the shares related to the defense sector. But in Monday’s trading session, there was tremendous buying in the stock of Hindustan Aeronautics Limited (HAL), the domestic defense manufacturing company, due to which the stock has reached a 52-week high.

HAL bid lowest
In fact, HAL has emerged as the lowest bidder to build five Polar Space Launch Vehicles (PSLVs) for ISRO, Indian Space Research Organization (ISRO). The company has issued a statement saying that Hindustan Aeronautics Limited (HAL) and L&T consortium ISRO (ISRO) have made the lowest bid to prepare 5 PSLVs. LAL is working closely with L&T for this project and is the largest partner. Some other vendors are also involved in this project. The contract has not been awarded yet. ISRO’s commercial wing MSIL (NSIL) had issued an RFP for this work.

LAL shares at highest level
Since the news of this news, the stock of Hindustan Aeronautics reached the highest level of Rs 1693. At present, HAL is trading at Rs 1681 per share with a gain of 3.75 per cent. Brokerage houses have advised investors to buy HAL shares. CLSA has advised to buy Hindustan Aeronautics stock with a target of Rs 1930.

HAL benefits from self-reliant India
In the last few years, the government has taken several steps to promote domestic defense production. According to an estimate, India’s Armed Forces is going to spend 130 billion dollars on defense needs in the next 5 years. The central government wants to reduce dependence on imported military requirements by promoting domestic defense manufacturing. The Defense Ministry has set a target of USD 25 billion (Rs 1.75 lakh crore) business in defense manufacturing over the next five years, with a target of USD 5 billion (Rs 35,000 crore) exports of defense equipment.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from digitnews.in Also investing money is never advised here.)

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