Rs 37 Dividend, 1:2 Split: Defence PSU Falls 4.42%, Buy For TP Rs 5,725 Post Q4: Jefferies

Brokerage firm Jefferies appears bullish on aerospace & defence sector public sector undertaking (PSU) Hindustan Aeronautics Ltd shares and recommended buy call with target price of Rs 5725 per share. Current market price of Hindustan Aeronautics share on BSE is Rs 4913.60 per share with intraday fall of 1.24%. HAL shares declined 4.42% in last 1-week but offered attractive gain in last 6 months with 107% return. HAL's market capitalisation stood at Rs 3,28,609.28 crore. LIC has 1.89% stake in Hindustan Aeronautics. FII/FPI have decreased holdings from 12.93% to 12.42% in Mar 2024 quarter. Number of FII/FPI investors jumped from 711 to 769 in March 2024 quarter. Check key details below:

Jefferies & UBS Share Views On HAL Share: The global brokerage firm assigned buy call on HAL share and upgraded the target price to Rs 5,725. The earlier target price was set at Rs 3,900. Meanwhile, UBS too is upbeat on HAL and recommended buy with upgraded target price of Rs 5200 from Rs 3600 per share earlier. UBS analysts said, "We believe this is justified by HAL's better order book scale-up, lower competition, and greater optionality in exports." For the next 6-months, the defence is poised to deliver 8-10 trainer and fighter versions of the LCA-MK1A (Tejas) in FY25E, enhancing manufacturing revenue."

HAL Q4: The defence PSU announced a surge in Q4 net profit on May 16 on the back of soaring demand for its aircraft from defence ministry. HAL declared a surge of 52% year-on-year (YoY) in its net profit to Rs 4309 crore for the quarter ended March 31, 2024. HAL reportedly received orders worth Rs 17,600 during the quarter, up 135% from an year ago. The company's revenue from operations rallied 18% YoY to Rs 14,769 crore in Q4 as against Rs 12,494 crore in the corresponding quarter of last year. For the entire year, the defence PSU's consolidated net profit rose 31% to Rs 7621 crore as against Rs 5,828 crore declared in FY 2023. Revenue from operations during the year jumped 13% to Rs 30,381 crore as against Rs 26,927 crore a year ago.

HAL declared its margin at 40% for March quarter as against 26% margin for the similar quarter of last year. EBITDA for the March quarter surged by 81.8% to Rs 5,901.1 crore as against the last year's EBITDA of Rs 3245.8 crore.

Hindustan Aeronautics Share Performance: The 52-week high share price of HAL share on BSE is Rs 5,377.40 per share (as on 24/05/2024) and 52-week low price is Rs 1530.50 per share (as on 01/06/2023). Hindustan Aeronautics shares rallied 74% year-to-date, offered whopping return of 217% in last 1-year, and gained 436% in last 2-years. In last 3-years, Hindustan Aeronautics shares jumped 867% and 1295% in last 5-years.

HAL Dividend History: It declared 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 4915.75, Hindustan Aeronautics Ltd share offers a dividend yield of 0.75%. Adjusting for Bonus/Splits the dividend yield is 0.60%.

HAL Stock Split: HAL carried out stock split of shares once since September 28, 2023. HAL last split face value of its shares from Rs 10 to Rs 5 in 2023 and 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 UBS and 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.