This Defence Stock Is Soaring In A Falling Market, Near 52-Week Highs

The stock of Hindustan Aeronautics Ltd is just 3% away from its 52-week high as market volatility continues. Speculations are rife that Federal Reserve may opt for aggressive rate hike. Energy and metal stocks witnessed a decline in noon trade today in the equity markets. The current market price (CMP) of Hindustan Aeronautics is Rs 1875.10 apiece. Let us find key details about the stock below:

1. Stock outlook of Hindustan Aeronautics

The CMP of the stock is Rs 1875.55 on NSE (around 1:37 pm) with a dip of 0.43%. The 52-week high of the stock is Rs 1942 apiece and the 52 week low is Rs 995. At today's cmp, the stock is now just 3.41% from its 52-week high. The P/E of the stock is 12.36 which is lesser than the sector P/E of 18.58, a positive for investors.

The EPS of the stock is 151.92. The stock has given a positive return of 23.8% in a month, positive return of 45% in 6 months, positive return of 79% in one year, and 65% positive return in 5 years.

2. Should you buy the stock of Hindustan Aeronautics?

Hindustan Aeronautics is a strong performer. It is witnessing a surging net cash flow and cash from the operating activity. It has emerged a profit-making entity with strong ROCE and low PE. It has a ROE of 29.4 %. The strong point of the company is that it has brought down its debt and it is now almost debt free.

When a peer comparison is done, its P/E is found to be lesser and market capitalization is highest at Rs 62,630 crore at the time of writing the report. Amid these positives, investors can invest in the stock of the company.

3. Hindustan Aeronautics Q4 Results

The company declared its Q4 results on May 20, 2022. The company has reported a 90% YoY rise in consolidated net profit at Rs 3105 crore for March quarter Q4 FY 2022. The profit stood at Rs 1628 crore for Q4 FY 2021. The revenue surged too by 6% to Rs 11,561 crore from Rs 10,867 crore in previous quarter.

4. Hindustan Aeronautics Dividend history

It has a good dividend track record and regularly declared dividend in the past 5 years. At the current market price of the stock, the dividend yield has turned out to be 2.12%. In March 2022, the Hindustan Aeronautics declared a dividend of 400% i.e. Rs 40 per share. It has declared dividends 6 times so far.

5. About Hindustan Aeronautics Ltd

It is a leading a public sector enterprise. It is involved in the design development manufacture repair overhaul upgrade and servicing of a vast range of products that may include aircraft helicopters, aero-engines avionics accessories, and aerospace structures. It is headquartered in Bangalore. It was incorporated on August 16, 1963.

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. There is a possibility that even dividend stocks could fall, thus eroding investor wealth. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.