- By Shreyansh Mangla
- Wed, 10 Sep 2025 06:57 PM (IST)
- Source:JND
HAL Shares Rise: Hindustan Aeronautics Ltd (HAL) shares climbed 2 per cent after the company signed an agreement with three key space agencies: ISRO, IN-SPACe, and NewSpace India Limited (NSIL).
Details of the Agreement
The agreement signed by HAL allows it to launch the SSLV (Small Satellite Launch Vehicle) into low Earth orbit. The SSLV is a three-stage vehicle designed to launch satellites weighing less than 500 kg. The license is non-exclusive and non-transferable.
It has a large scope of transfer, which includes comprehensive design documentation, manufacturing, quality control, integration, launch operations, and post-flight analysis, along with training and support.
HAL has decided to devote the first two years to technology adoption. A 10-year production phase will follow.
Strategic Impact of this Deal
HAL will transform from a component supplier into a comprehensive launch service provider. The company will now have the ability to build, own, and operate the SSLV.
HAL will be responsible for the mass production of the SSLV to meet both Indian and global demand.
This move aligns with HAL's strategy to establish a dedicated space vertical and become a key player in the expanding small satellite market.
A report released by the Ashika Institutional Research group revealed a positive outlook, stating that the initiative enhances HAL's growth options beyond its core defense business. The report also stated that it could boost HAL's revenue potential from the global small satellite launch services market.
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Key factors for this agreement's success include successful execution, technology absorption, and competitive positioning against private players.
There will be some key drivers to focus on. First, double-digit growth is expected from HAL when it starts the production of its much-applauded LCA MK1A.
By producing more products domestically, the company expects to face fewer supply chain problems, such as delays and high costs.
The Ashika Institutional Research group maintains a positive stance overall on HAL, viewing the move as a strong positive for long-term value creation.
HAL's Share Price Performance
HAL's stock gained 1.38 percent to a high of Rs 4,515 on the BSE. It was trading 1.12 per cent higher at Rs 4,503 at 11:45 AM. HAL's short-term performance included one month of inactivity, followed by a three-month period with a 12 per cent decline. HAL shares were trading 2 per cent higher at Rs 4,541 per share. The 52-week high of the stock is Rs 5,165 and 52-week low is Rs 3,046.
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Hindustan Aeronautics Limited (HAL) has been a winner over the long term, with its value growing by over nine times in the past five years, despite a recent dip last year. In the last six months, its stock rallied 32 per cent, and year-to-date, it has gained 8 per cent.
