L&T share price gains, HAL hits 52-week high. Here's why | Mint
Active Stocks
Fri Feb 23 2024 12:26:59
  1. Tata Steel share price
  2. 146.25 0.27%
  1. State Bank Of India share price
  2. 761.50 -0.58%
  1. HDFC Bank share price
  2. 1,429.50 0.68%
  1. Wipro share price
  2. 534.55 0.62%
  1. NTPC share price
  2. 336.10 -1.02%
Business News/ Markets / Stock Markets/  L&T share price gains, HAL hits 52-week high. Here's why
BackBack

L&T share price gains, HAL hits 52-week high. Here's why

The stocks gained investor attention after the government signed contracts with HAL and L&T for procurement of 70 HTT-40 Basic Trainer Aircraft & three Cadet Training Ships, respectively

Defence Minister Rajnath Singh. (PTI)Premium
Defence Minister Rajnath Singh. (PTI)

The share price of Hindustan Aeronautics jumped about 5% to touch 52-week high of 2,833 in morning trade, but pared some gains later. The stock opened at 2,712 against the previous close of 2,710 and then continued to gain. The stock gained investor attention after the government signed contracts with HAL and L&T for procurement of 70 HTT-40 Basic Trainer Aircraft & three Cadet Training Ships, respectively.

At the time of writing this copy, the stock was up 4.23%, or 114.50, at 2,824.50.

Meanwhile, L&T was up 23.05, or 1.08%, at 2,163.65.

“Ministry of Defence, on March 07, 2023, signed contracts with Hindustan Aeronautics Limited (HAL) and Larsen & Toubro Limited (L&T) for procurement of 70 HTT-40 Basic Trainer Aircraft & three Cadet Training Ships respectively in the presence of Raksha Mantri Shri Rajnath Singh in New Delhi. Defence Secretary Shri Giridhar Aramane along with other senior civil & military officials of MoD and representatives of HAL & L&T were present during the signing and exchanging of contracts," HAL said in an exchange filing.

The government earlier this month approved order worth 6,800 crore for HAL and order worth more than 3,100 crore for L&T to boost the ‘Make in India’ initiative.

“In a major boost to the Government's efforts to achieve 'Aatmanirbharta' in defence, the Union Cabinet had, on March 01, 2023, approved the procurement of 70 HTT-40 trainer aircraft from HAL at a cost of over 6,800 crore. The Cabinet had also cleared signing of contract with L&T for acquisition of three Cadet Training Ships from L&T, worth more than 3,100 crore under Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} category," said the filing.

What is HTT-40 Trainer Aircraft?

The HTT-40 is a turbo prop aircraft possessing good low speed handling qualities and provides better training effectiveness. This fully aerobatic tandem seat turbo trainer has an air-conditioned cockpit, modern avionics, hot re-fueling, running change over and zero-zero ejection seats. 

The aircraft will meet the shortage of basic trainer aircraft of Indian Air Force for training of newlyinducted pilots.

The HTT-40 contains approx. 56% indigenous content which will progressively increase to over 60% through indigenisation of major components and subsystems. The HAL would engage the domestic private industry, including MSMEs, in its supply chain. The procurement has the potential to provide direct and indirect employment to thousands of people spread over more than 100 MSMEs, the company said.

What is a Cadet Training Ship

The ships will cater to the training of officer cadets, including women, at sea after their basic training to meet the future requirements of the Indian Navy.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Mar 2023, 11:28 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App