New orders, improving execution to boost Hindustan Aeronautics' prospects

DAC's Rs 2.23 trillion proposal approval likely to pay rich dividends to HAL

A strong order book coupled with the recent approval by the Defence Acquisition Council (DAC) for proposals to enhance the operational capabilities of the Indian armed forces and expectations of better execution are some positive signs for Hindustan Aeronautics Limited (HAL). They have led to a 31 per cent rise in the stock of the defence major over the past month.

A key near-term trigger has been the approval by DAC, chaired by Defence Minister Rajnath Singh, to projects worth Rs 2.23 trillion that include procurement of 97 Tejas light combat aircraft and 156 Prachand combat helicopters.

HAL is expected