What would India’s security be without the mighty air defense? Our fighter jets, like Sukhoi Su-30MKI and MiG-29, protect us against aerial threats, patrol Indian airspace, and dominate in the skies during wartime, hindering enemy air operations and supporting ground troops. Now, the strong Indian Air Force is all set to become more powerful.
The big news for the Indian military is that the Ministry of Defense (MoD) has green-lighted the acquisition of 34 brand-new Advanced Light Helicopters (ALHs) Dhruv Mk III in an ₹8,073 crore deal with the state-owned Hindustan Aeronautics Limited (HAL). This is part of the double contract that the Cabinet Committee on Security (CCS) has inked, in addition to the Operational Role Equipment.
What did the deal mean for the Indian Defense?
The ALH Dhruv Mk III isn’t any ordinary helicopter. Packed with cutting-edge features, it is specifically designed for Indian conditions, including the rugged terrains and high altitudes of Siachen Glacier and Ladakh. Of the 34 high-tech helicopters lining the Indian skies, 25 will go to the Indian Army, and the remaining 9 will join the Indian Coast Guard’s fleet.
The contract is a double win for India, as it fortifies our defense and marks a significant move towards self-reliance under the Buy Indian (IDDM—Indigenously Designed, Developed & Manufactured) category.
Powerful Machines Empowering the Economy
The benefits of these mighty machines go beyond security. The project is expected to create a whopping 190 lakh man-hours of employment, ensuring a massive boost for Indian workers. Plus, more than 200 small and medium businesses (MSMEs) and 70 local vendors will be involved in supplying equipment, making this a true team effort, just like our defense.
The Positive Impact on HAL
Following the news, HAL’s stock price saw a big jump, with a nearly 3% increase to ₹3124.95 against the previous close of ₹3,039.90 on BSE. While the company’s market capitalization also rose to ₹2.08 lakh crore, trading activity picked up, with over 0.62 lakh shares trading and generating a turnover of ₹19.14 crore. Since 2019, HAL has witnessed a profit of ₹3,497 crore, increasing from ₹2327 crore in 2019 to ₹5824 crore in 2024.
Business May Soar for HAL
That’s not all. The new contract adds a whopping ₹85,000 crore to the company’s backlog, which is now three times its usual annual revenue. With a strong pipeline of government orders for aircraft, helicopters, and engines, the future looks bright for HAL.
In addition to the above, the company can expect regular repair and maintenance work. Thanks to the government encouraging the growing use of Indian-made parts, like engines and electronics, HAL can fulfill these contracts efficiently.
HAL’s relative strength index (RSI), which measures how much a stock’s price has fluctuated recently, is 45.8, indicating the stock is neither overvalued nor undervalued. Moreover, the stock price is currently higher than its long-term average prices (100, 150, and 200 days) but lower than its short-term average prices (5, 10, 20, 30, and 50 days), suggesting a potential upward trend despite recent volatility.
With Shakti engines powering the ALH Dhruv Mk III, the deal symbolizes India’s growing self-reliance in defense technology. It’s a win for our soldiers, the economy, and the defense firm HAL.
So, the next time you hear a helicopter whirring overhead, it might be one of our homegrown heroes soaring high and keeping India safe!
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
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