This Multibagger Defence Stock Marks New All Time High Today; Gains Over 10% In 2 Sessions

Shares of Hindustan Aeronautics (HAL)-the aerospace and defense entity rose to a fresh all time high of Rs. 2204.25 apiece on the NSE in trade on Wednesday (August 10, 2022). In 2 session, the scrip has logged a jump of over 10% over Friday's closing price of Rs. 1997.3. Meanwhile, headline indices are trading with a cut, with Nifty holding on to 17,500 levels.

For HAL i.e. enabling the country with its defence and aerospace equipments, the financial year 2022 has been the most rewarding with consolidated revenue gaining over 10% YoY to a record Rs. 25,604.95 crores. Net income at the firm also rose by a sharp 56.5% to Rs. 6400.3 crores. As a result, EPS or earning per share has increased to the highest ever of Rs. 151.92. Also, the company has significantly reduced it debt by Rs.5,876.08 Cr.

The company in comparison to the sector is trading at a low P/E of 14.38. The stock is close to turn a multibagger in the last one-year with returns at around 98%. The stock's 3-year return is outstanding at 240%.

Furthermore, the company also pays dividends to its shareholders. For the Fy 2022, the company declared an equity dividend of 500.00% amounting to Rs 50 per share. Given the last traded price of Rs. 2187, this translates to a dividend yield of 2.28%. This is indeed much better than the sector's average of 0.6%.

The overwhelming financials of the company is what attracts investors to this stock. Since Fy18, the company has not logged any decline in net income. Consequently, FII holding in the stock has also increased to 5.56% in June 2022 from 0.98% in June 2021.