Rs 1,20,000 Crore Order Book & FIIs Increase Stake: Multibagger Aerospace & Defence Stock Gains 5 Per Cent; PAT Jumps 43.4 Per Cent in H1FY25
The stock gave multibagger returns of over 100 per cent from its 52-week low and a whopping 1,000 per cent in 5 years.
On Monday, shares of Hindustan Aeronautics Ltd gained 5 per cent to Rs 4,319 per share from its previous closing of Rs 4,110.65 per share. The stock’s 52-week high is Rs 5,675 and its 52-week low is Rs 2,145.20.
Maharatna Aerospace & Defence PSU Company - Hindustan Aeronautics Limited (HAL) is a one-stop shop for India's defence aviation needs, specializing 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 2.88 lakh crore and has been maintaining a healthy dividend payout of 30 per cent.
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.
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Hindustan Aeronautics Limited (HAL), a Maharatna aerospace and defence PSU, has recently secured significant contracts from the Ministry of Defence (MoD). These contracts, aimed at bolstering India's defence capabilities, include the avionics upgrade of Dornier-228 transport aircraft to enhance the Indian Air Force's operational readiness and the manufacturing of 240 AL-31FP aero engines for Su-30MKI aircraft, worth over Rs 26,000 crore. Both projects align with the "Atmanirbhar Bharat Abhiyan" by prioritizing indigenous design, development, and manufacturing of critical aerospace components. HAL's commitment to increasing indigenization in aero-engine production and maintenance to up to 63% will further strengthen India's defence sector and reduce reliance on foreign suppliers.
The company's order book as of March 31, 2024, was Rs 94,000 crore. With the addition of a new order worth Rs 26,000 crore, the total order book now stands at Rs 1,20,000 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 over 100 per cent from its 52-week low and a whopping 1,000 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.