HAL Share Price: Largest defence PSU stock in terms of market value, Hindustan Aeronautics (HAL) traded highly bullish on Monday, March 3, despite broader market being volatile. Overall, the Maharatna giant was up by nearly 4% on BSE. The performance comes ahead of dividend payout which is scheduled in coming days. Also, reports have stated that HAL is planning to invest up to Rs 200 crore in Nashik airport.
HAL Share Price:
At the time of writing, HAL's share price was trading at Rs 3185.75 apiece on BSE, higher by 3.2% with a market capitalisation of Rs 2,13,379.35 crore. In the early session of Monday, the stock had risen by as much as 3.8% to hit an intraday high of Rs 3203 apiece.
The stock's 52-week high and low is at Rs 5,675 apiece and Rs 2,915 apiece respectively. However, year-to-date, HAL's share price is still down by nearly 23.6% on BSE. But in the long-term, HAL is a multi-bagger with gains of a whopping 928% in 5 years.
HAL Dividend:
HAL declared the first interim dividend of Rs 25 per equity share, having a face value of Rs 4 each fully paid up for FY25. In percentage terms, the dividend payout is 500%.
For the Rs 25 dividend per share, HAL turned ex-dividend on February 18, 2025, which was also the record date for determining eligible shareholders for the payout.
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.
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 Nashik Airport Investment:
As per the report, HAL is likely to invest in Nashik Airport to develop a new runway. As per Times Of India, HAL's board of directors has already approved Rs 200 crore to develop the new runway to enhance operational capabilities and cater to the city's growing aviation needs in the future.
Should You Or Sell HAL Share Price?
According to 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 average 1-year target price for HAL is set at Rs 5146.79, which hints at a potential 61.5% upside ahead.
Furthermore, in a research report last month, brokerage Mirae Asset Sharekhan highlighted, "Revenue stood at Rs. 6,957 crore, up 15% y-o-y (16% Q-o-Q), broadly meeting our estimates of Rs 6,789 crore. OPM of 24.3% increased 64bps y-o-y and was lower than our estimates of 27.0%. Consequently, operating profit of Rs. 1,692 crore was up 18% y-o-y. The company's net profit grew by 14% y-o-y to Rs. 1,434 crores, well supported by higher other income. The company had a strong order backlog of ~Rs. 1.33 Lakh crore. HAL received fresh orders worth Rs 55,800 crore as of 9M FY25, comprising Rs 39,000 crore in manufacturing orders, including 240 AL 31 FP engines valued at Rs 25,350 crore,12 Su-30MKI aircraft worth Rs 12,573 crore, and Rs 16,500 crore in ROH, spares, and D&D orders."
On the valuation, Sharekhan is bullish on HAL's growth trajectory as it is one of the key beneficiaries of structural reforms in the defence sector. The company had a healthy order book of Rs. ~1.33 Lakh crore as of Q3 and a promising order pipeline, which provides growth visibility till 2032.
"HAL has strong government support, a good order book and proven execution capabilities. The stock currently trades at ~27x its FY2027E EPS. We have a positive view of the stock and expect an upside of 42%," Sharekhan's note said last month.
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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