1:2 Split: Multibagger Defence PSU To Consider Dividend On June 26, Buy For TP Rs 5,725: Analysts

Large cap public sector undertaking (PSU) from defence & aerospace sector, Hindustan Aeronautics Ltd share witnessed decline of 3.98% in trade today on BSE. The company will hold meeting of Board of Directors on June 26, 2024 to consider the recommendation of final dividend for the financial year 2023-24. Current market price of HAL share on BSE is Rs 5313.30 per share. Hindustan Aeronautics shares surged 87.95% year-to-date and gained 173% in last 1-year.

Hindustan Aeronautics has a market capitalisation of Rs 3,55,340.22 crore. Life Insurance Corporation Of India has 1.89% stake in HAL with 12,628,239 shares of the company. HAL conducted stock split in 2023 in the ratio of 1:2 and shares traded ex-split on September 28, 2023. More details below:

Hindustan Aeronautics To Consider Dividend: As per the BSE filing of the company issued as on June 19, "Pursuant to Regulation 29(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Board of Directors of the Company in its meeting scheduled to be held on Wednesday, the 26th June, 2024 will consider, inter-alia, the recommendation of final dividend for the financial year 2023-24."

Defence Ministry Order: Earlier on June 18, The defence ministry issued a tender to HAL for the proposed acquisition of 156 Prachand light combat helicopters (LCH) to sharpen the capabilities of the Indian Army and the Indian Air Force. HAL also issued a BSE filing pertaining to the latest development stating, "we would like to inform that, Request for Proposal (RFP) has been issued by the Ministry of Defence for procurement of 156 Light Combat Helicopter (90 nos. for IA and 66 nos. for IAF)."

As per reports, the new helicopters are estimated to cost approximately Rs 50,000 crore.

Should You Buy Hindustan Aeronautics Shares? Jefferies said, "we expect HAL to continue double-digit growth for 3-5 years as the sentiment around defence indigenisation and exports remain upbeat. HAL is in a sweet spot as the business has high technology entry barriers." The global brokerage firm recommended buy call to HAL share with target price of Rs 5725 per share. Elara Securities too recommended buy call with target price of Rs 5590 per share.

Sudeep Shah of SBI Securities has assigned buy call to Hindustan Aeronautics Ltd shares for targets of Rs 5,350 and Rs 5,400 and keep the stop loss at Rs 5,120.

Hindustan Aeronautics Share Performance: Hindustan Aeronautics shares offered attractive returns of 8.70% in last 1-week, gained 90% in last 6-months, soared 454% in last 2-years and surged 948% in last 3-years.
In last 5-years, HAL stock offered eye-popping returns of 1470%.

HAL Dividend History: Hindustan Aeronautics announced a total of 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 5313.30 per share, HAL share offers a dividend yield of 0.70%. Adjusting for Bonus/Splits the dividend yield is 0.56%.

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 SBI Securities, Elara Securities, 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.