Hindustan Aeronautics Ltd (HAL) shares are set to trade ex-dividend next week. The Defence PSU recommended highest dividend since 2022. Last trading price of the stock on Bombay Stock Exchange (BSE) stood at Rs 3512.80 per share with sharp intraday fall 4.02%. If last trading price of stock is considered, it witnessed decline of 38.1% from its 52-week high price of Rs 5675.00.
Hindustan Aeronautics Ltd Shares Set To Go Ex-Dividend Soon
The Board of HAL on February 12, 2025 recommended first interim dividend of Rs 25/- per equity share of Rs. 5/- each fully paid up (500%) for the Financial Year 2024-25. The company fixed February 18, 2025 as the record date for the payment of interim dividend.
Why HAL Shares Declined 24.64% In Last 6-Months?
It is worth mentioning that several defence stocks registered steep correction after offering attractive returns in the last 3-years. The main reasons attributed behind the sudden fall in these stocks include the moderate allocation by Finance Minister Nirmala Sitharaman in the budget and stretched valuations.
According to brokerage firm StoxBox, “there are near term tailwinds as we expect government spending in the defense 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 plunged 15.76% year-to-date (YTD), slipped 14.06% in last 3-months, and jumped 18.78% in last 1-year. HAL zoomed 184.64% in last 2-years and delivered 426.99% returns in last 3-years. The PSU offered maximum returns of 837.12% in last 5-years.
Should You Buy HAL Shares?
Leading brokerage firm 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 Q3 Results
The PSU declared a surge of 14% in its consolidated net profit for the quarter ended December 31, 2024 to Rs 1,440 crore amid continued demand for its aircraft from defence ministry. The company had announced its consolidated net profit at Rs 1261 crore in the corresponding quarter of last year. The company’s revenue from operations zoomed 15% to Rs 6,957 crore for Q3FY25 as compared to Rs 6061 crore declared in Q3FY2024. It bagged orders worth Rs 13,500 crore from government for 12 Sukhoi fighter jets.
Meanwhile, it announced its 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.
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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