Rs 13 Dividend Paying Navratna PSU Stock: 21st August - Record Date; Buy The Defence Stock?

Bangalore serves as the corporate headquarters of Hindustan Aeronautics Limited (HAL), an Indian public sector aerospace and defence firm. India's largest defence public sector undertaking (DPSU), Hindustan Aeronautics Limited (HAL), is a Navratna firm that operates under the Department of Defence Production of the Ministry of Defence. HAL's RSI is 59 on a daily basis, 78 on a weekly basis, and 95 on a monthly basis, indicating that it is trading in an overbought zone. However, the stock is noteworthy since it has announced a final dividend of R 13, with the record date being August 21.

HAL Upcoming Dividend

The Board of Directors have considered and approved a "Final dividend of Rs. 13 per equity share of Rs. 5/- each fully paid up(260%) for the Financial Year 2023-24, which shall be paid to the eligible shareholders within 30 days from the date of its approval in AGM. Record Date for the payment of final dividend for the financial Year 2023-24, if approved by the shareholders in the ensuing AGM, will be Wednesday, the 21st August, 2024," said HAL in a regulatory filing.

HAL Trading Window Closure Update

"We wish to inform you that pursuant to the Insider Trading Policy of the Company, the Trading Window for trading in the securities of the Company shall remain closed for all Insiders including Designated Persons, Connected Persons and their immediate relatives from 30th June, 2024 till 48 hours after declaration of the financial results for the quarter ending on 30th June, 2024," said Hindustan Aeronautics in a stock exchange filing.

Hindustan Aeronautics Share Price Target

"Indian aerospace and defence company HAL is trading in an overbought zone, with its RSI standing at 59 daily, 78 weekly, and 95 monthly on timeframes. The stock has delivered exceptional gains of 183.81% over the past 1 year, 913.04% over 3 years, and 1378.38% over the past 5 years. With a dividend yield of 0.56%, a ROE of 24.72%, and a 12.13 P/B ratio, HAL also displays a strong financial performance. Despite the high valuation, implied by a PE ratio of 46.36 against an average sector PE of 95.8, and the stock's current price of Rs. 5261, we can expect a corrective pullback of 10-15%. Such a development could lead to a possible buying opportunity. Hence, I recommend traders and investors to track its price movements closely. Those interested may consider exploring the buying range of Rs.3950-4150 for a targeted price of Rs. 5000, Rs. 5500, Rs. 6000, Rs. 6250, Rs. 6400, Rs. 6600, and Rs. 6700. They may hold the stock for 3-9 months while still adhering to the stop loss of Rs. 3600," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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