Multibagger Defence Stock in Focus After Ministry of Defence Signs Rs 5,083 Crore Contracts for ALH Mk-III Helicopters and Shtil Missiles

In a significant move to strengthen India’s maritime security and Defence preparedness, the Ministry of Defence (MoD) has signed two contracts worth a combined Rs 5,083 crore. The agreements include the procurement of Advanced Light Helicopters (ALH) Mk-III for the Indian Coast Guard and Surface-to-Air Vertical Launch Shtil missile systems for the Indian Navy. The contracts were finalised in the presence of Defence Secretary Shri Rajesh Kumar Singh at South Block, New Delhi.

The first contract, valued at Rs 2,901 crore, has been signed with Hindustan Aeronautics Limited (HAL) for the supply of six ALH Mk-III helicopters in the maritime role. These twin-engine helicopters are equipped with advanced state-of-the-art systems and are designed to operate from both shore-based airfields and ships at sea. Their induction will enhance the Indian Coast Guard’s capability to safeguard offshore installations and artificial islands, and support fishermen and marine environmental protection efforts. The agreement also includes operational role equipment, an engineering support package, and performance-based Logistics support. The project aligns with the government’s “Aatmanirbhar Bharat” initiative, with participation from over 200 MSMEs and an estimated generation of approximately 65 lakh man-hours of employment.

The second contract, worth Rs 2,182 crore, has been signed with JSC Rosoboronexport of the Russian Federation for the acquisition of Surface-to-Air Vertical Launch Shtil missiles along with associated missile holding frames. These missiles will bolster the air defence systems of frontline Indian Navy warships. The system offers rapid-reaction, all-weather engagement capability against diverse aerial threats, significantly improving ship survivability in hostile environments. The Ministry noted that the agreement reflects the lonGSTanding and time-tested defence partnership between India and Russia, built on strategic alignment and mutual trust.

Both procurements form part of a broader strategy to modernise India’s maritime security architecture. The HAL contract has been concluded under the “Buy (Indian-IDDM)” framework, reinforcing the government’s push for indigenously designed, developed, and manufactured defence equipment. Together, these acquisitions aim to equip the Indian Coast Guard and Indian Navy to effectively address evolving maritime threats.

HAL Share Price Update

On Wednesday, shares of Hindustan Aeronautics Limited fell 1.53 per cent to Rs 3,891.00 per share from its previous closing of Rs 3,951.60 per share. The stock’s 52-week high is Rs 5,165.00 per share and its 52-week low is Rs 3,046.05 per share.

During the session, the stock touched an Intraday high of Rs 3,974.00, marking a rise of approximately 0.57 per cent over its previous close.

The company has a market cap of over Rs 2,60,220.35 crore. The stock price has surged over 189.07 per cent in the last 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.