Hindustan Aeronautic (HAL) share price is scheduled to deliver a 500% dividend benefit to eligible shareholders' demat accounts before March 14. The start of March month has been bullish for HAL stock, as it gained by nearly 15% in six sessions. On March 10, although the stock corrected, had crossed Rs 3,500 levels in the session. The broader consensus on HAL shares is BUY, with a target price of more than Rs 5,100 levels.
HAL Share Price:
After market hours of March 11, the defence PSU stock stood at Rs 3416.55 apiece, down by 0.97% on BSE, with a market cap of Rs 2,28,490.32 crore. HAL is the largest defence stock in terms of m-cap. During the trading session of Monday, HAL stock did touch an intraday high of Rs 3539.20 before investors booked profits.
Despite the latest correction, HAL stock zoomed by nearly 14.7% from the February 28th level to the intraday high of March 10th. On the closing price of March 10, HAL shares have advanced by nearly 11%. On February 28th, the stock was merely at Rs 3,086.55 apiece.
However, year-to-date, the stock is down by over 18% amidst market volatility. Data from BSE showed that HAL's price-to-equity ratio is at 26.41x, while return on equity is around 27.83%.
HAL Dividend:
The heavyweight stock turned ex-dividend on February 18, 2025, which was also the record date for determining eligible shareholders for the payout of dividend of Rs 25 per share. In percentage terms, the dividend payout is 500%.
However, the payment date for the dividend is set on or before March 14, 2025.
Data from Trendlyne showed that HAL has delivered as many as 13 dividends since March 2019. Since its first-ever stock split, HAL has carried dividends of up to Rs 60 per share cumulatively. Last year, HAL delivered an interim and final dividend of Rs 22 and Rs 13 per share for FY25. Together, a Rs 35 dividend per share was paid in FY24. Considering this and the first interim dividend of FY25, the total payout comes to around Rs 60 per share since its first split.
Meanwhile, HAL share price split for the first time in September 2023 in the ratio of 1:2. The ex-date was September 29, 2023, where face value of Rs 10 each was trimmed to Rs 5 each.
HAL Stock Recommendation:
As per Trendlyne data, the consensus recommendation from 15 analysts for Hindustan Aeronautics Ltd. is BUY. EPS is expected to reduce by 7.4% in FY25. The 1-year average target price is set at Rs 5146.79, hinting at a potential 51% upside.
Also, broker Antique Stock Broking has recommended BUY for a target price of Rs 4,887. Additionally, brokerage Prabhudas Lilladher has stated BUY for the target of Rs 4,110.
About HAL:
Hindustan Aeronautics Limited (HAL) is an Indian public-sector aerospace and defence company, headquartered in Bengaluru (Bangalore). Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers in the world. HAL began aircraft manufacturing as early as 1942 with licensed production of Harlow PC-5, Curtiss P-36 Hawk and Vultee A-31 Vengeance for the Indian Air Force, as per Wikipedia.
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