1:2 Split, Rs 37 Dividend: Defence PSU Jumps 1372% In 5-Years; Buy For TP Rs 5725: Jefferies

Leading brokerage firm is bullish on aerospace & defence sector psu, Hindustan Aeronautics Ltd shares and recommended buy call. The analyst also sought to upgrade the target price of Hindustan Aeronautics Ltd share to Rs 5,725 per share from the earlier target price of Rs 3900. Current market price of Hindustan Aeronautics share on BSE is Rs 4729.30 per share with intraday gain of 4.37%. Hindustan Aeronautics share offered shareholders attractive return of 123% in last 6-months and 206% in last 1-year. It is important to note that stake of Life Insurance Corporation Of India (LIC) is 1.89% in HAL with 12,628,239 shares of the company. The company has a market capitalisation of Rs 3,16,283.76 crore.

It is important to note that HAL already declared equity dividend amounting to Rs 37.00 per share in last 1-year and conducted stock split in the ratio of 1:2 in the year 2023. HAL shares have been witnessing sharp rally as the stock gained 22% in last 1-week only and today hit 5th consecutive 52-week high. More details below:

Jefferies On HAL: Jefferies highlighted confidence in HAL's trajectory saying, "margins should be largely sustainable as cost optimization is a focus." The analyst said that the higher margin service income and aircraft deliveries should see double-digit revenue growth for 4-6 years. Export visibility is witnessing improvement, added the brokerage firm in its note.

HAL Q4: The PSU declared an attractive jump in its Q4 net profit earlier this week on May 16 amid rising demand for its aircraft from defence ministry. The defence PSU declared a surge of 52% year-on-year (YoY) in its net profit to Rs 4309 crore for the quarter ended March 31, 2024. According to Elara Capital, the company secured orders worth Rs 17,600 during the quarter, up 135% from an year ago. Its revenue from operations zoomed 18% YoY to Rs 14,769 crore in Q4 as against Rs 12,494 crore in the corresponding quarter of last year.

For the whole year, its consolidated net profit zoomed 31% to Rs 7621 crore as against Rs 5,828 crore announced in FY 2023. Meanwhile, revenue from operations during the year rallied 13% to Rs 30,381 crore as against Rs 26,927 crore a year ago.

Hindustan Aeronautics Share Performance: The 52-week high price of Hindustan Aeronautics share on BSE is Rs 4752.00 per share (as on 18/05/2024) and 52-week low price is Rs 1490.38 per share (as on 25/05/2023). Hindustan Aeronautics shares rallied 22% in last 1-week only, soared 54% in last 3-months, gained 67% year-to-date, jumped 463% in last 2-years only and rose 838% in last 3-years. HAL shares witnessed record rally of 1372% in last 5-years only.

HAL Dividend History: HAL announced 11 dividends since March 28, 2019. In last 1-year, HAL announced an equity dividend amounting to Rs 37.00 per share. At the current share price of Rs 4729.30, HAL offers a dividend yield of 0.78%. Adjusting for Bonus/Splits the dividend yield is 0.62%.

HAL Stock Split: HAL split the face value of its shares once since September 28, 2023. Hindustan Aeronautics last split the face value of its shares from Rs 10 to Rs 5 in 2023.It traded ex-split as on September 28, 2023.

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.

Disclaimer:

The stock has been picked from the brokerage report of Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.