Rs 81,784 crore order book: This multibagger aerospace & defence company hands over LCA Tejas Twin Seater to Indian Air Force!

The stock is up by 70 per cent in just 1 year, 190 per cent in 2 years and a whopping 375 per cent in 3 years.

Hindustan Aeronautics Ltd (HAL), a leading manufacturing company of aerospace and defence and a PSU enterprise, handed over the first LCA Tejas twin-seater to the Indian Air Force in the presence of Rakha Rajya Mantri, Mr Ajay Bhatt at a ceremony. It is a huge boost to self-reliance, said the minister in his address to the packed audience.

Mr Ajay Bhatt said, "I am proud to be part of this historic occasion and salute the spirit of HAL which has been spearheading Swadeshi manufacturing in defence".

He unveiled the twin-seater LCA he added, "In all, the development of LCA Tejas has also brought about a shift in our approach to defence procurement. It has demonstrated that India has the talent, knowledge and capability to design, develop and manufacture world-class fighters".

Speaking on the occasion, Chief of Air Staff Air Chief Marshal VR Chaudhari said that IAF would be going forward to procure 97 more LCAs and with this, it will have 220 LCAs in its inventory.

Mr C B Ananthakrishnan, CMD (Addl Charge) of HAL said that the company is committed to delivering all the twin seater aircraft pertaining to the IOC and FOC contract to IAF in the current financial year. With this, we are moving one step closer towards achieving self-sufficiency in the fixed-wing segment. These trainers also ensure a smooth transition for the pilots from trainer to fighter aircraft in this class", he added.

Today, shares of Hindustan Aeronautics Ltd surged 1.45 per cent to Rs 1,943.85 per share from its previous closing of Rs 1,916 with an intraday high of Rs 1,971.50 and an intraday low of Rs 1,930.40.

Earlier, the company ex-date for the stock split stock split, dividing each existing Rs 10 equity share into two Rs 5 equity shares. Additionally, the company paid a final dividend of Rs. 15 per share on August 24, 2023.

According to the Quarterly Results, the net sales increased by 8.06 per cent to Rs 3,915 crore and net profit increased by 34.10 per cent to Rs 814 crore in Q1FY24 compared to Q1FY23. The net sales increased by 9.37 per cent to Rs 26,927 crore and the net profit increased by 14.25 per cent to Rs 5,828 crore in FY23 compared to FY22. The company has a market cap of Rs 1,30,000 crore and has been maintaining a healthy dividend payout of 29.6 per cent.

The company's order book position is maintained at Rs 81,784 crore with the receipt of fresh manufacturing contracts, ROH and spare orders with continued budget allocation from the customer’s cash and the bank balance position has improved to Rs 20,306 crore.

The stock has a PE of 10.6x, an ROE of 27.2 per cent and an ROCE of 30.6 per cent.  The stock is up by 70 per cent in just 1 year, 190 per cent in 2 years and a whopping 375 per cent in 3 years. Investors should keep an eye on this multibagger Large-Cap stock.

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