Low PE high ROE multibagger stock: This aerospace company has bagged an order worth Rs 6,828.36 crore!

The stock has a PE of 14.79x whereas the sectoral PE is 25x and an ROE of 29.4 per cent with multibagger returns of 158.86 per cent in the last 2 years.

Hindustan Aeronautics Ltd (HAL) informed the exchange that The Union Cabinet has approved the procurement of 70 HTT-40 Basic Trainer Aircraft from Hindustan Aeronautics Limited (HAL) for the Indian Air Force at a cost of Rs 6,828.36 crore. The aircraft will be supplied over a period of six years. The HTT-40 is a turboprop aircraft and is designed to have good low-speed handling qualities and provide better training effectiveness.  

Today, shares of Hindustan Aeronautics surged 1.65 per cent to an intraday high of Rs 2,729.80 per share from its previous closing of 2,685.70. At 03:30, shares of the company ended the day in green, up 0.89 per cent to Rs 2,709.60.  

Hindustan Aeronautics Ltd (HAL) plays a strategic role in India’s defence program being the only Indian company having specialization in aircraft manufacturing and providing its maintenance and related services. 

According to the financials, HAL has a market cap of 90,785 crore. The company reported positive numbers in both Quarterly Results and annual results. Also, the company will be holding a meeting on Friday, March 10, 2023, to consider, inter-alia, the declaration of the second interim dividend for the financial year 2022-23. The Board has verified the record date as March 20, 2023. 

The stock has a PE of 14.79x whereas the sectoral PE is 25x and an ROE of 29.4 per cent respectively. The stock gave 97.98 per cent in the last 1 year and multibagger returns of 158.86 per cent in the last 2 years.