Hindustan Aeronautics Ltd (HAL) is cruising steady despite the somber moods on the Street; the stock rose over 3% to hit an intraday high at Rs.2794.85, which is quite close to its 52-week high of Rs.2812.75.

The stock price reacted to the news that the Ministry of Defence, yesterday, signed contracts with HAL and L&T for procurement of 70 HTT-40 Basic Trainer Aircraft & three Cadet Training Ships respectively.

If one may recollect, the Union Cabinet had, on March 01, 2023, approved the procurement of 70 HTT-40 trainer aircraft. from HAL at a cost of over Rs 6,800 crore.

The HTT-40 is a turbo prop aircraft possessing good low speed handling qualities and provides better training effectiveness. The aircraft will meet the shortage of basic trainer aircraft of Indian Air Force for training of newly inducted pilots. The aircraft will be supplied over a period of six years.

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.