As of May 12, the Rafale manufacturing company, Dassault Aviation, witnessed a sharp drop in the European stock market. The company hit a 7 percent intraday drop, reaching €292. Throughout the day, the stocks kept fluctuating from €291 to €295, indicating the uncertainty brought by the Pakistan Air Force’s claim of shooting down three Rafale jets in the Indian inventory.
IAF Neither Denied nor Confirmed the Claims
While responding to the international media about the Rafale fighter jets being shot down during Operation Sindoor, Indian Air Marshal Bharti neither denied nor confirmed the claims. He said
“losses are a part of any combat scenario.”
On 7 May, CNN reported that Pakistani military officials claimed shooting down five Indian Air Force jets and one drone in self-defence. Among these jets, Pakistan claimed three Rafale jets, a MiG-29 and an SU-30 fighter.
The number and certainty of Rafale jets being shot down by PAF are not confirmed yet. According to a recent report by Reuters, two US officials have been quoted as saying that a top Chinese-made Pakistani fighter plane shot down at least two IAF aircraft. The report referred to another official saying the PAF shot down one Rafale.
Dassault Aviation Shares Persistent Decline
Although the claim that the Rafale jets were shot down remains disputed even after a ceasefire between India and Pakistan, this news brought a fluctuation in the stocks of Dassault Aviation.
Graph Showing Persistent Decline in Dassault Aviation Stocks
Source: Google Finance
Dassault Aviation Stocks Fluctuated
On May 7, Dassault Aviation closed at €324.60 while holding a market cap of €332.20. The market opened at €326.80, but the stocks showed volatility throughout the day with a decrease of €4.40 (−1.36%) from the previous close of €324.60. Meanwhile, the stocks traded at €332.20, trading near a 52-week high, far above the low of €160.90, suggesting that the long-term performance of the company is strong despite the recent drop.
Dassault Aviation Stocks Showed a Sharp Drop
By May 9, Dassault Aviation closed at 315.00, down 3.31% from the previous trading session. It was analysed that the claims of Rafael jets being shot down tend to worry short-term investors, but analysts also point to Dassault’s robust order book, which included a recent €7.4 billion contract for 26 Rafale jets, as proof of long-term revenue visibility. Furthermore, Dassault’s strong 2024 financial performance (€6.24 billion in sales and €924 million in net income), kept investors reassured about the company’s resilience.
As of May 12, Dassault Aviation witnessed the sharpest drop in the European stock market. The company hit a 7% intraday drop, reaching €292.
Although there has been a persistent downward trend in Dassault’s stock, market analysts seem positive and optimistic about the company’s future. The company’s portfolio is strong, and there is yet no confirmation of the Rafale jet being shot down.
Rafale Jet
Rafale is a 4.5-generation multi-role fighter jet. It is twin-engined with a maximum speed of Mach 1.8 (1,915 km/h) (1,034 knots). Rafale has a range of 1,850 km (999 nautical miles) with a payload capacity of 24.5 kg. India currently possesses 36 Rafale fighters, and under the newly signed deal, India aims to buy 26 Rafale fighter jets from Dassault Aviation, which will be delivered by 2030.
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