Rs 94,000 Crore Order Book: Multibagger Aerospace & Defence Stock Secures Rs 62,700 Crore Contract for 156 Combat Helicopters
The stock gave multibagger returns of 225 per cent in 2 years and a whopping 1,500 per cent in 5 years.
Hindustan Aeronautics Ltd has secured a significant contract with the Ministry of Defence for the supply of 156 Light Combat Helicopters (LCH), Prachand, to the Indian Army and Indian Air Force. The contract, valued at approximately Rs 62,700 crore, includes training and associated equipment. This development marks a substantial addition to HAL's order book, reinforcing its strategic role in India's defense sector.
DSIJ offers a service 'Technical Advisory Services' with recommendations for best swing trading stocks based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
The company is a core supplier to the Indian Defense Services, including the Indian Air Force, Indian Navy, Indian Army, and Indian Coast Guard. HAL's business segments include manufacturing and services, with a notable increase in revenue from the services segment. The company is also involved in manufacturing structural parts for ISRO's satellite launch vehicles. With a robust order book and ongoing development of indigenous programs, HAL continues to focus on innovation and expansion in the aerospace and defense sectors.
Hindustan Aeronautics Ltd (HAL) is a key player in the aerospace and defense industry, primarily engaged in the manufacture and maintenance of aircraft and helicopters. The company operates through three main business segments: Manufacturing, Services, and Others. The Manufacturing segment, which includes aircraft and helicopter production, saw a 13% revenue growth between FY22 and FY24. The Services segment, which covers repair and maintenance, experienced an 18% increase in revenue during the same period. HAL's order book has grown to Rs 94,000 crore as of FY24, with significant contracts from the Ministry of Defence.
The company is heavily invested in R&D, with several ongoing indigenous development programs. HAL has also formed strategic collaborations with international partners, such as General Electric and Airbus, to enhance its capabilities. The company plans to continue its growth trajectory with a focus on innovation and expansion in the aerospace sector. 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.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 6,956.93 crore, reflecting a YoY growth of 14.78 per cent compared to Rs 6,060.91 crore in December 2023. The operating profit stood at Rs 1,680.84 crore, marking a 17.21 per cent increase from Rs 1,434.09 crore in the same quarter last year. The profit after tax (PAT) grew by 14.29 per cent to Rs 1,432.60 crore from Rs 1,253.51 crore in December 2023.
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.