Hindustan Aeronautics Ltd (HAL), a Navratna CPSE has declared a second interim dividend of ₹ 20 per equity share of ₹ 10 each fully paid up. The company’s shares have been on an uptrend and have gained 2.27% on Monday’s intraday trades to reach a fresh 52-week high of ₹ 2,914.00 apiece on the National Stock Exchange (NSE).
In another development, the Indian Air Force has entered into a contract for procuring 6 Dornier-228 aircraft from the company for ₹ 667 crores. This lot will be procured with an upgraded fuel-efficient engine coupled with a five-bladed composite propeller.
HAL is engaged in the business of manufacturing aircraft and helicopters and the repair and maintenance of these vehicles. It works under the administrative control of the Ministry of Defence.
Axis Securities has a buy rating on the shares of HAL with a target price of ₹ 3085, which translates into an upside of 8.53% as compared to its share price of ₹ 2,842.45 apiece at 12:17 PM on Monday.
HAL has a market capitalization of ₹ 95,277 crores and is a large-cap company. It has a high return on equity of 29.26% and an ideal debt-to-equity ratio of 0.00. Its shares were trading at a price-to-earnings ratio of 15.61 which is significantly lower than the industry P/E of 49.51, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
