Hindustan Aeronautics Ltd (HAL) shares will trade ex-dividend tomorrow as the company set February 18, 2025 as the record date for interim dividend of Rs 25/- per equity share of the fv of Rs 5/0 each for the FY2024-25. Current market price of HAL shares on BSE stood at Rs 3474.40 per share. The stock declined over 1% in trade today at the time of writing the story. The stock slipped over 15% in last 1-month and saw jump of 163.23% in last 2-years. Its market capitalisation stood at Rs 2,32,359.19 crore. The PSU offers a return on equity (ROE) of 27.83%.
Life Insurance Corporation Of India (LIC) holds stake of 2.53% in the defence firm. It is worth mentioning that FII/FPI increased holdings from 11.85% to 12.26% for December 2024 quarter. Check key details below:
Hindustan Aeronautics Ltd Issues Dividend Updates
The exchange filing of the PSU issued today stated, “2. In terms of the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2020, dividend paid or distributed by a Company on or after 1st April, 2020 shall be taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of dividend.” In view of the above, all the shareholders of the Company, who want to avail tax exemption, are requested to submit tax exemption documents to KFin Technologies Limited, Registrar and Share Transfer Agent of the Company, by uploading same at https://ris.kfintech.com/form15/ or email to einward.ris@kfintech.com on or before 18th February, 2025, added the exchange filing.
Hindustan Aeronautics Ltd (HAL) Shares To Go Ex-Dividend Tomorrow
The Defence PSU on February 12, 2025 declared its highest dividend since 2022. The Board of Directors on February 12, 2025 annoucned first interim dividend of Rs 25/- per equity share of Rs. 5/- each fully paid up (500%) for the Financial Year 2024-25. The firm set February 18, 2025 as the record date for the payment of interim dividend.
HAL never recommended any bonus share till date.
Why HAL Shares Sliped 38.78% From 52-Week High?
Defence stocks logged sharp fall after delivering stunning returns in the last couple of years. The PSU stock slipped 38.78% from its 52-week high price of Rs 5675 per share, if today’s price of HAL is taken into consideration. The main reasons that triggered sudden fall in defence stocks include the moderate allocation by Finance Minister Nirmala Sitharaman in the budget and stretched valuations. Meanwhile, the ongoing negative sentiments prevailing in the D-Street also contributed to the decline in the stocks.
According to brokerage firm StoxBox, “there are near term tailwinds as we expect government spending in the defence sector to improve from hereon and will not be surprised to see a higher allocation for the sector in the upcoming Union Budget. We advise investors to accumulate quality stocks such as HAL, Mazagaon Dock, Cochin Shipyard and BEL as valuations have moderated and provide a good entry point from a 12-months perspective.”
HAL Shares Performance
The 52-week high price of HAL shares on BSE is Rs 5,675.00 per share (as on 09/07/2024) and 52-week low price is Rs 2,826.00 per share (as on 13/02/2024), respectively. The stock fell 16.59% year-to-date (YTD), fell over 27% in last 6-months, and gained 12.86% in last 1-year. In last 5-years, the stock rallied maximum as shares zoomed 860.12%.
HAL Q3 Results
The defence state-run company announced a jump of 14% in its consolidated net profit for the quarter ended December 31, 2024 to Rs 1,440 crore as a result of continued demand for its aircraft from defence ministry. It had declared its consolidated net profit at Rs 1261 crore in the corresponding quarter of last year. Its revenue from operations surged 15% to Rs 6,957 crore for Q3FY25 as against Rs 6061 crore announced in Q3FY2024. HAL received orders worth Rs 13,500 crore from government for 12 Sukhoi fighter jets.
HAL declared the consolidated total income for the December 31, 2024 quarter at Rs 7588.71 crore as against Rs 6521.26 crore total income declared in the similar quarter of last year. The company announced its EPS for Q3FY25 quarter at Rs 21.53 as against Rs 18.86 declared in the Q3FY24.
Should You Buy HAL Shares?
Leading brokerage firm Morgan Stanley maintains overweight call with target price of Rs 4958 per share (downgraded from Rs 5135 assigned earlier). The analyst cited healthy revenue and order inflow in Q3FY25 with 9MFY25 order inflow remains healthy driven by orders for Sukhoi engines and aircrafts. The analysts sees orders of 1,65,000 crore for HAL.
How To Be Eligible For HAL Dividend
Record date plays key role in deciding shareholders’ eligibility for dividend. Shareholders whose name reflects in company’s record on the record date will become eligible for dividend. Record date is the date when the firm finalises list of shareholders qualified for the company’s dividend distribution. In the case of HAL, the record date for interim dividend is Feb 18, 2025. The shareholders must buy shares of HAL by Feb 18, 2025 (only after taking SEBI’s registered advisor’s advice) in order to be eligible for the interim dividend
HAL About
Hindustan Aeronautics is a leading aerospace and defense company, owned by the government of India. It has also become the 14th Maharatna Central Public Sector Enterprise (CPSE) in October 2024. It 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 Morgan Stanley and Stoxbox. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.
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