Hindustan Aeronautics Limited’s shares surged 2.41% and
touched an intraday high of Rs 2,450 on Wednesday after the company said it
assembled and tested gas turbines that were used in recently commissioned
aircraft carrier IAC-1 Vikrant.

“HAL is proud to be associated with India’s first
indigenously designed and built aircraft carrier, IAC-1 Vikrant which was
commissioned recently as INS Vikrant by the Prime Minister at Kochi,” the
company said in an exchange filing.

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“IAC is powered by four General Electric LM2500 Gas
Turbines supplied by HAL,” it added.

According to Hindustan Aeronautics these gas turbines were
assembled and tested at its dedicated facility at Bangalore.

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“HAL carried out critical activities towards readiness of
IAC for basin trials. HAL’s team was actively involved in the integration of
the power plant to the IAC and was onboard IAC for all sea trials in the
absence of foreign OEM representatives contributing substantially to the
Make-in-India concept,” the state-owned aerospace and defence company said.

The stock touched a 52-week high of 2,450, following the

As of 01:17 pm IST, the stock was trading 1.25% higher at
Rs 2,422.25 on the BSE.

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Earlier this week, the company said one of its consortium
signed a formal contract for Rs 860 crore with NewSpace India Limited for
realisation of five PSLV-XL Launch Vehicles.

Analysts are also positive on the stock. In a note
published on August 30, ICICI Securities said it sees strong order visibility
for HAL and competitive positioning in the industry.

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“Management is confident of maintaining 24%-25% EBITDA
margins. Supply chain of Russian spares has been managed effectively and the
company is looking at Rs 13,000 crore of repair and overhaul (ROH) revenues in
FY23. Management highlighted its internal target of Rs 2,500 crore in export
revenues by FY25. Current orderbook stands at Rs 85,000 crore including a fresh
order of Rs 6,000 crore in Q1FY23,” said the broker.

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ICICI Securities has maintained a buy rating with target
price at Rs 2,655.