Stock To Buy: Defence PSU Likely To Hit TP Of Rs 4750, Nomura Bullish On Defence Space

Brokerage firm Nomura is bullish on India's defence sector and initiated buy call on Hindustan Aeronautics Ltd share with target price of Rs 4750 per share. Current market price of Hindustan Aeronautics share on BSE is Rs 3872.60, implying an upside of 22.66 if you decide to buy HAL shares now. Hindustan Aeronautics stock declined 89% in last 6-months and 400% in last 2-years. The PSU has a market capitalisation of Rs 2,58,989.81 crore.

Board of Hindustan Aeronautics will hold meeting on May 16, 2024 to consider financial results for the quarter and year ended March 31, 2024. The aerospace and defence sector company has a market capitalisation of Rs 2,58,989.81 crore. Life Insurance Corporation Of India (LIC) has 1.89% stake in HAL with 12,628,239 shares of the company. More details below:

Buy Hindustan Aeronautics Share: Nomura expects a $138 billion opportunity in India's defence sector over FY24 to FY32. The brokerage agreed that there could be further legs in the upcycle, as the government is following through on all defense-related policies. The analyst recommended a target price of Rs 4,750 on HAL. The PSU has a robust moat in the fighter aircraft and helicopter space. HAL also has a case for further re-rating.

Board Meet On May 16: As per the BSE filing of the PSU, "the Board of Directors of the Company will be held on Thursday, the 16th May, 2024, to consider, inter-alia, the Audited Financial Results of the Company, for the quarter and year ended 31 51 March, 2024."

Hindustan Aeronautics Share Performance: The 52-week high price of Hindustan Aeronautics share on BSE is Rs 4045.20 per share (as on 29/04/2024) and 52-week low price is Rs 1474.35 per share (as on 12/05/2023). Hindustan Aeronautics shares fell over 2% in last 2-weeks, gained 162% in last 1-year, soared 670% in last 3-years, and rallied 1110% in last 5-years.

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 3872.60, HAL offers a dividend yield of 0.96%. Adjusting for Bonus/Splits the dividend yield is 0.76%.

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 Nomura. 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.