HAL shares see 83% rally in the year as buyers' interest in its defence aircraft rises

The company’s robust performance and business outlook have fuelled investors' interest in the stock. HAL has benefited from the Indian government's efforts to increase defence indigenisation.

The Defence Ministry informed Parliament on Friday that HAL has responded to the Request for Proposal issued by Royal Malaysian Air Force for 18 Fighter Lead in Trainer – Light Combat Aircraft (FLIT – LCA) offering the Light Combat Aircraft Tejas twin-seater variant.

“Other countries which have evinced interest in LCA aircraft are: Argentina, Australia, Egypt, the U.S., Indonesia, and the Philippines,” said Ajay Bhatt, Minister of State for Defence.

The company's last financial year earnings report notified that the current order book stands at Rs 82,000 crore. The defence company also expects to clock 6-7 percent revenue growth for FY23.

“We project the same amount of increase in our revenues, 6-7 percent and beyond that, we intend to increase our revenues because of new projects coming into play. So, FY24-25 onwards, it will definitely increase,” R Madhavan, chairman and managing director, HAL, told CNBC-TV18.

Apart from orders from the Ministry of Defence, HAL is also in talks with bagging contracts from Egypt, Malaysia and Nigeria for Tejas, as reported by news agency PTI. Last month HAL also offered to set up production facilities for the Tejas aircraft and helicopters in Egypt.