Shares of Hindustan Aeronautics Limited (HAL), a state-owned aerospace and defence company, surged over 3 per cent in intraday trade on Tuesday in an otherwise weak market where movements of most of stocks remained fragile due to escalated tensions between India and Pakistan.
Early today, Indian Air Force carried out air strikes and destroyed Jaish-e-Mohammed terror camps across the Line of Control in Pakistan, in response to the Pulwama attack of February 14 that claimed the lives of 40 CRPF jawans.
The operation was carried out using Mirage-2000 fighter jets, which has been manufactured by Dassault Aviation along with Thales of France and upgraded by state-owned HAL. Hindustan Aeronautics has undertaken upgradation of 47 jets with extensive French technical assistance in Bangalore as part of a Rs 17,547 crore contract finalised in 2011-2012.
The upgrade program includes installation of new mission computers, pulse doppler radars, advanced navigation and electronic warfare systems, advanced communication systems and identification systems.
Following the announcement, shares of defence company gained as much as 3.31 per cent and touched an intra-day high of Rs 674.10 apiece, against previous closing price of Rs 652.50. The stock opened marginally lower at 650 level, but buying kicked up a gear on late morning deals after report claimed that the surgical strike was carried out using Mirage-2000 fighter jets.
In a similar trend, stocks soared as much as 3.94 per cent to 676.95 level on the national stock exchange. Retreating from day's high, the shares were currently trading at Rs 658.65, up 1.14 per cent.
The aerospace major, who had taken an overdraft from the bank for paying its employees, had registered a profit of Rs 7,334 crore since 2015-16 to September 2018. On Monday, the competent authority has granted its approval for enhancement of HAL's working capital limit to Rs 7,300 crore from Rs 6,050 crore as sanctioned by SBI and other consortium banks.
HAL spent an average of Rs 358.33 crore every month in 2017-18 and another Rs 1,000 crore on procurement. HAL had 29,035 employees as on March 31, 2018.
Edited by Chitranjan Kumar
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