Rs 1,84,000 Crore Order Book: Multibagger Defence Stock Jumps Over 5 Per Cent with Heavy Volume
The stock gave multibagger returns of 210 per cent in 2 years and a whopping 1,600 per cent in 5 years.
On Monday, shares of Hindustan Aeronautics Ltd jumped 6.63 per cent to Rs 4,438 per share from its previous closing of Rs 4,201.35 per share. The stock’s 52-week high is Rs 5,675 and its 52-week low is Rs 3,045.95. The shares of the company saw a spurt in volume by more than 6 times on the BSE.
Hindustan Aeronautics Ltd (HAL), is one of the major defence companies in India, which specialises in designing and manufacturing as well as repairing and overhauling aircraft and helicopters. The company has three major operating segments: Manufacturing, Services and Other activities. The Manufacturing segment contributed 46 per cent to the revenue in FY24 and grew 13 per cent between FY22 and FY24. The Services segment, which contributed to 47 per cent of the revenue, also increased by 18 per cent in the same period. As of FY24, the company’s order book has reached Rs 94,000 crores, with some major orders to be placed in FY25.
The company has 20 production and overhaul divisions and nine R&D centres in different parts of India to focus on indigenous programmes like HTT-40 Basic Trainer Aircraft and Light Utility Helicopter (LUH). HAL has also set up some strategic alliances, for instance, a joint venture with Safran Helicopter Engines and an MoU with General Electric for aero engine manufacturing. The company has a capital expenditure plan of Rs 3,000 crore per annum on average till FY30 to enhance its capabilities and support the defence set up of India.
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Hindustan Aeronautics Ltd (HAL) has submitted a provisional unaudited revenue of Rs 30,400 crores for the year ending March 31, 2025, that is marginally higher than Rs 30,381 crores in the previous year. HAL was also impacted by supply chain problems, including the unavailability of engines, which affected LCA deliveries and an accident that affected the delivery of ALHs, but it was able to maintain its revenue by increasing deliveries of other products and services.
The order book of the company has also increased significantly and now stands at Rs 1,84,000 crores, including manufacturing orders worth Rs 1,02,000 crores and ROH orders worth Rs 17,500 crores. HAL has also signed the biggest deal with the Ministry of Defence (MoD) to supply 156 LCH Prachand helicopters for Rs 62,777 crores. The company also made it to the list of prestigious ‘Maharatna’ companies and became the first Defence PSU to do so. With the supply chain issues now being sorted out and new orders to be delivered, HAL is ready for better performance in the next fiscal year.
The stock gave multibagger returns of 210 per cent in 2 years and a whopping 1,600 per cent in 5 years. Investors should keep an eye on this multibagger aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.