Hindustan Aeronautics shares poised to recover all losses from June 4 courtesy of this major update

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Shares of Hindustan Aeronautics Ltd., the state-run defence equipment manufacturer will be in focus on Tuesday after markets resume trading after the company informed the exchanges that a Request for Proposal (RFP) has been issued by the Ministry of Defence for the procurement of 156 Light Combat Helicopter.

Out of these 156 Light Combat Helicopter, 90 are for the Indian Army and 66 for the Indian Airforce, HAL said in an exchange filing.

A Request For Proposal (RFP) is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it.

No further details on the quantum of the order or any such detail has been shared by HAL in its exchange filing.

Shares of Hindustan Aeronautics hit a record high of ₹5,444 on June 3, which was the day when the markets reacted to the exit polls ahead of the Lok Sabha Election results on June 4.

However, on the day of the election result, the stock fell 17% and fell to levels sub-₹4,000. However, it took some support from lower levels to end at ₹4,333.

Since then, the stock has gained for eight straight sessions and closed nearly 2% higher on Friday at ₹5,200.

As of Friday's closing, Hindustan Aeronautics has a market capitalisation of ₹3.5 lakh crore.

Defence stocks like Paras Defence, HAL, BEL have all been in focus after Defence Minister Rajnath Singh said that defence exports had hit a record high of over ₹21,000 crore in financial year 2024. Over the next five years, Singh said that the country is targeting exports worth over ₹50,000 crore.

Stocks of all shipbuilders like Mazagon Dock, Cochin Shipyard ended with strong gains on Friday. Even Paras Defence ended in a 20% upper circuit after a large fund house acquired stake in the company. You can read more on that here.