HAL takes off

HAL is up in the green today morning, rising 4% to an intraday high at Rs.1805 on the back of around 10k shares changing hands. Its 52-week high is at Rs.1970.

The stock price rose after news came in from PTI that India's Tejas Light Combat Aircraft (LCA), developed by HAL, has emerged as the top choice for Malaysia as the country looks to replace its fighter jets' fleet.  

As part of the package, India has offered to set up an MRO (Maintenance, Repair and Overhaul) facility in Malaysia for its Russian-origin Su-30 fighter fleet as it is facing difficulties in procuring spares for the aircraft from Russia in view of sanctions imposed.

The company said that the deal is in the final stages of negotiation. If the deal with Malaysia is sealed, then it will signal the acceptability of the aircraft which would result in the opening up of many other export options.

LCA is a single-engine and highly agile multi-role supersonic fighter aircraft capable of operating in high-threat air environments.