Rs 94,000 Crore Order Book: Defence Stock Jumps After Revising Tejas Mk1 Contract to Rs 6,542.20 Crore
The stock gave multibagger returns of 225 per cent in 2 years and a whopping 1,500 per cent in 5 years.
On Friday, shares of Hindustan Aeronautics Ltd jumped 3.2 per cent to Rs 4,294 per share from its previous closing of Rs 4,161.60 per share. The stock’s 52-week high is Rs 5,675 and its 52-week low is Rs 3,045.95. The shares of the company saw a spurt in volume by more than 1.15 times on BSE.
Hindustan Aeronautics Ltd has signed an amendment to the LCA Mk1 FOC Contract dated December 23, 2010. The value of the contract has been revised from Rs 5,989.39 crore to Rs 6,542.20 crore, on account of revision in the delivery schedule.
About the Company
Hindustan Aeronautics Limited (HAL) is a one-stop shop for India's defence aviation needs, specialising in designing, manufacturing, repairing, and maintaining aircraft, helicopters and engines, making them a critical supplier for the country's defence program. The President of India’s portfolio owns the majority of the stake, i.e., 71.64 per cent as of June 2024. The company has a market cap of Rs 2.85 lakh crore and has maintained a healthy dividend payout of 30 per cent.
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According to Quarterly Results, the net sales increased by 6.1 per cent to Rs 5,679.29 crore and net profit increased by 21.6 per cent to Rs 1,498.46 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 8.1 per cent to Rs 10,323.79 crore and net profit increased by 43.4 per cent to Rs 2,929.57 crore in H1FY25 compared to H1FY24.
The company's order book of over Rs 94,000 crore. The stock has a PE of 33x, an ROE of 29 per cent and an ROCE of 39 per cent. The stock gave multibagger returns of 225 per cent in 2 years and a whopping 1,500 per cent in 5 years. Investors should keep an eye on this multibagger aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.