Rs 82,000 crore order book and FIIs increase stake: Heavy buying witnessed in this multibagger aerospace & defence stock; hits fresh 52-week high!
Shares of the company gained more than 50 per cent in the last six months.
Hindustan Aeronautics Limited (HAL) has delivered stunning returns to its shareholders, witnessing a fivefold rise in share price over the past three years. From Rs 428.40 on December 11, 2020, the stock soared to Rs 2,787.20 on December 11, 2023, translating to a remarkable 500 per cent increase. This incredible growth means that an investment of Rs 1 lakh in HAL three years ago would have ballooned into a staggering Rs 5 lakh today. On Monday, the stock gained more than 2 per cent and made a new 52-week high.
Further propelling HAL's success is the recent approval of capital acquisition proposals worth Rs 2.23 lakh crore by the Defence Acquisition Council (DAC). This initiative aims to bolster the operational prowess of the Indian Armed Forces and prioritizes sourcing 98 per cent of the equipment from domestic industries, aligning with the 'Aatma Nirbhar Bharat' vision.
Also read, This multibagger shipbuilding company bags new order worth Rs 1,145.10 crore
Adding to the momentum, HAL delivered a robust second quarter for FY24, showcasing a 9.54 per cent increase in net sales to Rs 5,635.70 crore compared to the previous year. Operating profit also witnessed a positive trajectory, up 1.87 per cent. While the net profit of Rs 1,008.53 crore dipped slightly from the previous year's Rs 1,078.87 crore, it still reflects strong financial performance.
HAL plays a crucial role in the Indian defence ecosystem, designing, developing, and manufacturing a diverse range of aerospace products, including aircraft, helicopters, aero engines, avionics, and more. Their expertise extends to repair, overhaul, upgrade, and service of these advanced technologies, ensuring the operational readiness of the Indian Air Force, Navy, Army, and Coast Guard.
Overall, HAL's impressive growth, coupled with its strategic importance in the national security landscape, positions the company as a compelling investment opportunity for those seeking long-term capital appreciation. The company has an order book of Rs 82,000 crore and FIIs increased their stake in the company in September 2023.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.