Multibagger defence stock in news on revised MoU with Aeronautical Development Agency

Shares of Hindustan Aeronautics Ltd (HAL) are in news today after the aerospace and defence firm announced a revised Memorandum of Understanding (MoU) with the Aeronautical Development Agency (ADA), bolstering their collaboration on the LCA AF Mk-2 program.

The multibagger stock slipped 5.88% to Rs 5015.40 on Thursday on BSE. HAL shares touched an intraday low of Rs 4975.35.

Total 3.06 lakh shares of the firm changed hands amounting to a turnover of Rs 155.28 crore. Market cap of the firm fell to Rs 3.35 lakh crore on BSE.

 The defence stock has risen 160% in a year and gained 465% in two years.

“We would like to inform that, the Company has signed an amendment to Memorandum of Understanding (MoU) with Aeronautical Development Agency (ADA) w.r.t. completion of LCA AF Mk-2 development leading to operation clearance during Full Scale Engineering Development (FSED) Phase-3 of LCA AF Mk-2 program for a value of Rs 2970.00 crore including FE of Rs.285.00 crores,” said HAL in a communication to bourses.

Hindustan Aeronautics Limited is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The company's products include HAWK, light combat aircraft (LCA), SU-30 MKI, intermediate jet trainer (IJT), DORNIER and HTT-40.