150% Dividend, 1:2 Stock Split: PSU Defence Co To Procure 12 Su-30MKI Aircraft

Shares of public sector undertaking, Hindustan Aeronautics Ltd (HAL) rallied nearly 4% on September 14 after the company received approval from Defence Acquisition Council (DAC) for the procurement of 12 Su-30MKI aircraft and avionics upgradation of Dornier aircraft. It is worth mentioning here that HAL shares will trade ex-split on September 29, 2023. Earlier, HAL stock traded ex-dividend for Rs 15/- per equity share of Rs 10 each (150%) on August 24, 2023. Check details below:

HAL Stock Soars After Getting DAC Nod To Buy 12 Su-30MKI Aircraft: According to the September 15, 2023 BSE filing, HAL stated, "In terms of Regulation 30 of the SEBI (LODR) Regulations, 2015, .we wish to inform that, as per Press Information Bureau, Defence Acquisition Council (DAC) accorded approval for Acceptance of Necessity (AON) for procurement of 12 Su-30MKI Aircraft with associated equipment and avionics upgradation of Dornier Aircraft."

Earlier, Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoN) for nine capital acquisition proposals of approx. Rs 45,000 crore. The meeting was held under the chairmanship of Raksha Mantri Shri Rajnath Singh on September 15, 2023. All these procurements will be made from Indian vendors under Buy (Indian-Indigenously Designed Developed and Manufactured (IDMM)/Buy (Indian) category which will give substantial boost to the Indian defence Industry towards achieving the goal of 'Aatmanirbhar Bharat'.
The DAC also approved procurement of Next Generation Survey Vessels for the Indian Navy which will greatly enhance its capabilities in performing Hydrographic Operations. The DAC also accorded AoN for proposals of the Indian Air Force which included Avionic upgradation of Dornier Aircraft to improve the accuracy and reliability for operations.

HAL Stock Outlook & Return: Last trading price of HAL stock is Rs 3999.45 per share with intraday gain of 1.32%. Its 52-week high price is Rs 4180.00 per share and 52-week low price is Rs 2242.00 per share, respectively. It has a market capitalisation of Rs 1,33,723.23 crore. HAL stock gained 42% in last 6-months, soared 57% YTD, offered return of 61% in last 1-year, surged 179% in last 2-years, and rose 374% in last 3-years. In last 5-years, HAL stock gained 316%.

HAL To Trade Ex-Split in 1:2 Ratio After Turning Ex-Dividend For Rs 15/Share: According to the BSE filing, "Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that as indicated in our Letter No. CO/SEC/4(7)/2023-24/ BSE & NSE Filing/26 dated 27th June, 2023, the Company has fixed Friday, i.e. 29th September, 2023 as the Record Date, to ascertain the name of shareholders entitled for the sub-division/ split of existing 1 (one) Equity Share of face value of Rs. 10/- each fully paid up into 2 (Two) Equity Shares of Rs. 5/- each fully paid up."

HAL Financials: The state run defence company HAL on August 11, 2023 announced its consolidated net profit at Rs 814 crore in first quarter of 2023, up 31% YoY from Rs 620 crore declared in the same quarter of preceding fiscal. But, on a sequential basis, the net profit declined 71% from Rs 2831 crore in the previous March quarter. The revenue from operations soared 8% to Rs 3915.35 crore for the quarter ended June 30 as against Rs 3622 crore announced in the corresponding quarter of last fiscal.

HAL About: Hindustan Aeronautics Ltd (HAL) is an aerospace and defense company, owned by the government of India. The company develops, designs, manufactures, and supplies aircraft, helicopters, avionics, and communications equipment for military and civil markets, among others.

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