HAL shares surge on signing largest ever deal for LCA Tejas. What are the key stock levels to watch1 min read . Updated: 18 Aug 2021, 12:00 PM IST
- HAL CMD said that it is the largest ever deal and the purchase order placed by HAL for LCA Tejas
Shares of state-run aerospace behemoth Hindustan Aeronautics Limited (HAL) were trading more than 3% higher on Wednesday at ₹1,102 per share on the BSE after the company on Tuesday announced that it has placed an order of ₹5,375 crore for 99 F404-GE-IN20 engines and support services with GE Aviation, USA to power the Tejas Light Combat Aircraft (LCA).
"This is the largest ever deal and the purchase order placed by HAL for LCA," R Madhavan, CMD, HAL said. Madhavan said that HAL is working closely with GE Aviation for its support to boost the export potential of Tejas and also to supply spares to the global supply chain of GE 404 engines.
Santosh Meena, Head of Research, Swastika Investmart Ltd said that HAL is showing positive momentum in opening trade after the company said that it has placed an order of ₹5375 crore for engine and support services with GE aviation, the USA to power Tejas Aircraft. The company CMD says that this is the large ever deal and order placed by HAL.
"The news is positive but stock is still in a sideways trend with a well-defined range of 1050-1150 where a move above 1150 can lead to a rally towards the 1300-1350 zone while 1000 will be critical support at any correction,'' Meena added.
The Indian aerospace company claimed that the indigenously-built Tejas aircraft is one of the best in its class globally, powered by F404-GE-IN20 engines. The LCA was inducted into service in 2004.
Ordering of the engines marks a major milestone in the execution of 83 LCA contract with IAF, HAL said. The co-operation with GE Aviation will be further enhanced with the manufacturing of GE F414 engines in India for the upcoming LCA MkII program.
The highest thrust variant of the F404 family, the F404-GE-IN20 incorporates GE’s latest hot section materials and technologies as well as Full Authority Digital Engine Control (FADEC) for reliable power and outstanding operational characteristics.
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