The shares of the defence company jumped 5 percent after the Government approved a proposal worth Rs. 2.2 lakh crores. The stock has delivered more than 30 percent return to its shareholders in just one month.
With a market capitalization of Rs. 1.65 lakh crores, the shares of Hindustan Aeronautics Ltd (HAL) started Friday’s trading session on a higher note at Rs. 2,495 compared to its previous close at Rs. 2,379. The share hit a high of Rs. 2,500, gaining around 5 percent, which is also recorded as the company’s fresh 52-week high and currently trading around 2,478 apiece.
In an exchange filing, the company mentioned that the Defence Acquisition Council (DAC) approved in respect of Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals amounting to Rs 2.23 lakh crore, of which, 98 percent of the total AoN amount will be sourced from domestic industries.
According to the reports, the Government has already cleared the acquisition of 97 Tejas jets, and 156 Prachand attack helicopters.
This Capital Acquisition Proposals will give a substantial boost to the Indian Defence Industry towards the aim of achieving the goal of Aatmanirbharta.
In addition, the company mentioned that DAC accorded the Acceptance of Necessity for the procurement of a Light Combat Helicopter for the Indian Air Force and Indian Army and a Light Combat Aircraft Mk 1A for the Indian Air Force from HAL. Furthermore, AONs have also been accorded for the upgradation of Su-30 MKI Aircraft indigenously from the company.
Looking at the company’s financials, the revenue increased by 41 per cent from Rs. 3,915 crores in Q1 FY24 to Rs. 5,636 crores during Q2 FY24. Moreover, the net profit zoomed by 51 percent from Rs. 814 crores to Rs. 1,235 crores during the same timeframe.
According to the annual report of the company, they had incurred Capital Expenditure (CAPEX) of Rs. 2,081 crores in FY 2022-23. And, in May 2023, the company expected an estimated order value of almost Rs. 48,000 crores to be concluded in the coming financial year.
According to the latest shareholding pattern, the Promoters or the Government hold a 71.64 percent stake, FIIs have a considerable stake of 12.63 percent, DIIs have 9.72 percent shares, and the remaining 6.02 percent shares are with the Retail Investors.
Headquartered in Bengaluru, Hindustan Aeronautics Ltd was incorporated in 1963. The company is engaged in the business of manufacturing and repairing aircraft and Helicopters, and also provides the maintenance of these products.
Written By Vaibhav Patil
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