Hindustan Aeronautics gains on IAF's plan

Shares of Hindustan Aeronautics (HAL) witnessed a 1.5% rise, reaching Rs 1,945 per share on BSE on October 5, following the Indian Air Force's (IAF) announcement of its intent to purchase an additional 97 LCAs after receiving the first LCA Tejas twin-seater aircraft. The S&P BSE Sensex also saw an increase of 0.5%, reaching 65,552 levels by 9:25 am.

Throughout the year, the stock of this defense major has surged by 54%, in contrast to the Sensex's 7% increase. Previously, the stock hit a 52-week high of Rs 2,090 on September 11, 2023.

In an exchange filing dated October 4, HAL's management assured that the company is dedicated to delivering all twin-seater aircraft specified in the IOC and FOC contracts to the IAF within this fiscal year. 

"With this, we are moving one step closer towards achieving self-sufficiency on the fixed-wing segment. These trainers also ensure smooth transition for the pilots from trainer to fighter aircraft in this class," added C.B. Ananthakrishnan, CMD (Additional Charge), HAL.

The LCA Tejas Twin Seater is a lightweight, all-weather multi-role 4.5 generation aircraft designed to meet the training needs of the IAF and serve as a fighter aircraft when necessary.

The production of the LCA twin-seater variant places India among the select few nations with such operational capabilities within their defense forces.