The shares of the leading defence company gained up to 2.2 percent after the company received approval for Maharatna Central Public Sector Enterprise (CPSE).
With a market capitalization of Rs 3.01 lakh crore, the shares of Hindustan Aeronautics Ltd were trading at Rs 4,510.00 per share, increasing around 1.42 percent as compared to the previous closing price of Rs 4,446.85 apiece.
Reason for rise:-
The shares of the company have seen positive movement after Hindustan Aeronautics Ltd received approval from Finance Minister Nirmala Sitharaman for Maharatna status, Central Public Sector Enterprise (CPSE).
With Maharatna’s status, HAL gets more operational and financial autonomy. This enables it to invest up to 15% of its net worth in projects and up to Rs 5,000 crore in international businesses without seeking government clearance. This allows HAL to be more flexible in terms of mergers, acquisitions, and capital expenditures, as it is not subject to the same constraints as lower-tier PSUs.
Financial analysis:-
Analyzing the company’s financial condition, revenue magnified by 11 percent from Rs 3,915 crore in Q1FY24 to Rs 4,348 crore in Q1FY25, during the same time frame net profit jumped by 76 percent from Rs 814 crore to Rs 1,436 crore.
Orderbook:-
As of Q1FY25, Hindustan Aeronautics Limited has a strong order book of Rs. 94,000 Crores and the management of the company expects to increase it to Rs. 1,20,000 Crores by the end of the fiscal year.
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The future order pipeline of HAL looks promising with anticipated contracts for LCA Mark 1A, Domier Aircrafts, Utility Helicopter Marine, Advanced Light Helicopter, and many others expected to be somewhere around Rs.1,60,000 – 1,70,000 crores, and it aims to materialize it in the next 3 years time frame.
Capex:-
Hindustan Aeronautics Limited (HAL) has plans to invest in various greenfield projects and capacity augmentation of various programs with an estimated CAPEX plan between Rs.14,000 – 15,000 crores for the next 5 years, taking an average CAPEX of almost Rs. 3,000 crores on an annual basis.
Export Orders and MRO Business:-
The company’s FY25 order intake guidance of ₹47,000 crore excludes MRO orders. It has entered into a working arrangement with Airbus for MRO services, with anticipated growth in the coming years, signaling future opportunities for expansion in the maintenance, repair, and overhaul sectors.
Remarkable Return:-
The company has given a return of 24.27 percent in six months and a multi-bagger return of 129.83 percent in a year. If an individual investment of Rs. 1 lakh in the company would be worth Rs. 2.29 lakh in a year.
Company profile:-
Hindustan Aeronautics Limited is an Indian firm that designs, develops, manufactures, repairs, overhauls, upgrades and services a variety of goods such as airplanes, helicopters, aero-engines, avionics, accessories, and aerospace structures.
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Written by:- Abhishek Singh
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