PSU Defence Stock Sets Record Date For Payment Of 2nd Interim Dividend, Shares Jump

Large cap PSU Defence stock, Hindustan Aeronautics Ltd (HAL) fixed March 20, 2023 as the record date for payment of second interim dividend. After the announcement, the stock of HAL jumped by 0.89%. The stock offered return 95% in last 1-year and 14% in last 6-months.

Meanwhile, ICICI Direct has recommended investors to buy Hindustan Aeronautics with target price of Rs 3300 apiece implying a return of 22%. Check details below:

1. Hindustan Aeronautics Sets Record Date For Payment Of 2nd Interim Dividend

According to the BSE filing of the company, "Pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that a meeting of the Board of Directors of the Company will be held on Friday, the 10th March, 2023, to consider, inter-alia, the declaration of second interim dividend for the financial year 2022-23. Record date for the payment of second interim dividend, if declared, will be Monday, 20th March, 2023."

2. Hindustan Aeronautics Stock Performance & Return In Last 3-Years

Last trading price of the PSU Defence sector stock is Rs 2709.60 apiece with 52-week high at Rs 2812.75 apiece and 52-week low at Rs 1304.55 apiece, respectively.

The large cap stock has a market capitalisation of Rs 90,605.64 crore. The stock rallied 15% in last 1-month, 95% in last 1-year, and 308% in last 3-years.

3. Valuation

According to ICICI Direct, "We expect HAL to deliver revenue and EBITDA CAGR of 10.3% and 14.8%, respectively, over FY22-25E. PAT is likely to grow at 11.9% CAGR (FY21-25E). Increase in profitability with strong asset turnover is expected to result in healthy return ratios over FY23-25E. We continue to remain positive and retain our BUY rating on the stock. Target Price and Valuation: We value HAL at Rs 3300 i.e. 20x PE on FY25E EPS."

4. About HAL

Hindustan Aeronautics (HAL), the largest defence PSU in India, is engaged in design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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.