Rs 94,000 crore order book: ISRO Chairman Inaugurates This Multibagger Aerospace & Defence Company’s Facilities to Support LVM3 Program
The stock gave multibagger returns of 175 per cent in just 1 year and a whopping 780 per cent in 3 years.
Mr S. Somanath, Chairman, ISRO inaugurated state-of-the-art Propellant Tank Production and CNC Machining facilities at HAL's Aerospace Division today in the presence of Mr C B Ananthakrishnan, CMD (Addl. Charge), HAL and senior officers from ISRO and HAL. The newly established facilities will provide a major boost to ISRO's ability to meet its growing production needs, particularly for the Launch Vehicle Mark-3, India's heaviest and most powerful rocket. Currently, the existing capacity allows for only two L VM3 launches per year, whereas ISRO's requirements stand at six launches annually. The facilities will address this gap, enabling HAL to manufacture enough critical components to support the production of six L VM3 rockets per year.
Appreciating HAL's efforts, Mr Somanath said HAL has enormous capacities and this potential should be explored in the larger interest of both organizations. HAL will play a larger role in ISRO's future missions hence should focus on emerging technologies, designing challenges and taking up end-to-end tasks to ease pressure on ISRO, he added.
Mr Ananthakrishnan said the ongoing collaboration with ISRO will accelerate human spaceflight missions and the development of Next-Generation Launch Vehicles (NGL V). There are significant opportunities to work with ISRO and HAL is committed to investing further to unlock the full potential of space programs. "The day is not far off when Space becomes an important vertical of HAL", he added.
During the program, in a symbolic gesture, the first Gaganyaan Service Module and LVM-3 Isogrid Version Hardware were also handed over to ISRO. The Propellant Tank Production Facility will specialize in the manufacturing of high-performance fuel and oxidizer tanks, critical components for the L VM3 launch vehicle of size 4m in diameter and up to 15m in length. The CNC Machining Facility houses advanced Computer Numerical Control (CNC) machines for handling high-precision fabrication of 4.5m class Rings and Propellant Tank Domes of LVM3.
Dr V Narayanan, Director, Liquid Propulsion Systems Centre (LPSC), Mr M Mohan, Director, Human Space Flight Centre (HSFC), Mr Mihir Kanti Mishra, Chief Executive Officer (Bangalore Complex)-HAL and Mr S Anbuvelan, Chief Executive Officer (Helicopter Complex) were present on the occasion.
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Today, shares of Hindustan Aeronautics Ltd gained 6.91 per cent to Rs 4,665.75 per share from its previous closing of Rs 4,364.05. The stock’s 52-week high is Rs 5,434.90 and its 52-week low is Rs 1,730.50.
Hindustan Aeronautics Limited (HAL) is a one-stop shop for India's defence aviation needs, specializing in the design, manufacture, repair, and maintenance of aircraft, helicopters, and their engines, making them a critical supplier for the country's defence program.
According to its Quarterly Results, the net sales increased by 18.2 per cent to Rs 14,768.8 crore, operating profit increased by 62.8 per cent to Rs 6,458.6 crore and net profit increased by 51.1 per cent to Rs 4,296.9 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 12.8 per cent to Rs 30,381.1 crore, operating profit increased by 39.4 per cent to Rs 11,637.7 crore and net profit increased by 30.4 per cent to Rs 7,594.5 crore in FY24 compared to FY23.
Additionally, the shares of the company ex-traded stock split, dividing each existing Rs 10 equity share into two Rs 5 equity shares on September 28, 2023. Additionally, the company paid a final dividend of Rs 15 per share on August 24, 2023. The President of India’s portfolio owns the majority of the stake i.e., 71.64 per cent as of March 2024. The company has a market cap of over Rs 3,10,000 crore and has been maintaining a healthy dividend payout of 26 per cent.
The company has an order book of Rs 94,000 crore as of March 31, 2024. The stock has a PE of 41x, an ROE of 29 per cent and an ROCE of 39 per cent. The stock gave multibagger returns of 175 per cent in just 1 year and a whopping 780 per cent in 3 years. Investors should keep an eye on this multibagger aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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