HAL Shares Jumps After Launch Of New Facilities In Boost To ISRO
The stock rose as much as 9.97% during the day to Rs 4,800 apiece on the NSE.
Shares of Hindustan Aeronautics Ltd. rose nearly 10% on Thursday after inauguration state-of-the-art propellant tank production and CNC machining facilities at HAL's aerospace division.
The newly established facilities will provide a major boost to ISRO's ability to meet its growing production needs, particularly for the Launch Vehicle Mark-3, India's heaviest and most powerful rocket, according to a release.
Currently, the existing capacity allows for only two L VM3 launches per year, whereas ISRO's requirements stand at six launches annually. The facilities will address this gap, enabling HAL to manufacture enough critical components to support the production of six L VM3 rockets per year, it said.
HAL's stock rose as much as 9.97% during the day to Rs 4,800 apiece on the NSE. It was trading 9.38% higher at Rs 4773 per share, compared to a 1.23% advance in the benchmark Nifty at 11:19 a.m.
The share price has risen 69.87% on a year-to-date basis and 151.3% in the last 12 months. The total traded volume so far in the day stood at 0.96 times its 30-day average. The relative strength index was at 55.66.
Out of 16 analysts tracking the company, 14 maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 6.5%.
