Rs 94,000 Crore Order Book: Multibagger Aerospace and Defence PSU Secures Rs 26,000 Crore Order for 240 Aircraft Aero-engines!

The company’s shares have gained more than 300 per cent in the last 2 years.

On September 2, 2024, the Cabinet Committee on Security approved a proposal for the procurement of 240 AL-31FP aero-engines for the Indian Air Force's (IAF) Su-30 MKI aircraft. The order, is valued at over Rs 26,000 crore including all taxes and duties.

Delivery of these engines is scheduled to commence in one year and will continue over the next eight years. Notably, these engines will feature over 54 per cent indigenous content, thanks to the indigenization of several key components. They will be manufactured at HAL's Koraput division. The Su-30 MKI is a crucial and powerful component of the IAF's fleet. This supply will ensure ongoing operational readiness and bolster the country’s defence preparedness.

Hindustan Aeronautics Limited (HAL) is involved in the manufacture of aircraft and helicopters, as well as their repair and maintenance. HAL plays a strategic role in India’s defense program, being the sole Indian company with expertise in aircraft manufacturing and the provision of maintenance and related services. 

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Currently, the shares of Hindustan Aeronautics Limited are trading at around Rs 4,812 per share on the BSE. The company's current market capitalization stands at Rs 3,22,048 crore, and the stock has generated an impressive multibagger return of over 140 per cent in the past 1 year.

As per the Quarterly Results, in Q1 FY25, Hindustan Aeronautics Limited recorded a revenue of Rs 4348 crore. The operating profit stood at Rs 3915 crore. The net profit for Q1 FY25 was Rs 1436 crore. Looking at the annual performance, the company generated a revenue of Rs 30381 crore in FY24, compared to Rs 26928 crore in FY23. The operating profit for FY24 was Rs 9739 crore with a net profit of Rs 7595 crore.

According to the shareholding pattern, promoters own a 71.64 per cent stake, while public investors hold 7.86 per cent. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 11.68 per cent and 8.81 per cent stakes, respectively.

Investors must keep this Large-Cap stock on their radar.

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