Shares of this large-cap company jumped around 3 percent in Tuesday’s trading session after receiving an export order worth Rs. 194 crores for the supply of Hindustan-228 aircraft. The shares have delivered a multibagger return of 148 percent to its shareholders in one year.
With a market capitalization of Rs. 2,18,629 crores, the shares of Hindustan Aeronautics Ltd started Tuesday’s trading session on a higher note at Rs. 3,193 compared to its previous close of Rs. 3,170.80. During the trading session, the shares hit a high of Rs. 3,281.95, gaining around 3 percent and are currently trading at Rs. 3,262 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had signed a contract with Guyana Defence Force (GDF), Government of Guyana for the supply of two Hindustan-228 commuter aircraft along with Manufacturer Recommended List of Spares (MRLS), ground handling equipment, ground support equipment, and training for a total value of MUSD 23.37 (approx. Rs. 194 crores).
Earlier, on March 15, the PSU company had signed two contracts with the Ministry of Defence for a combined value of Rs 8,073.17 crores for the acquisition of 34 Advanced Light Helicopters (ALH) Dhruv Mk lllalong with Operational Role Equipment for Indian Army (25 ALHs) and Indian Coast Guard (09 ALHs).
Coming onto the company’s financial statement, the revenue increased by 8 percent from Rs. 5,636 crores during the September quarter to Rs. 6,061 crores in the December quarter. In addition, the net profits increased marginally by 1.5 percent from Rs. 1,235 crores to Rs. 1,254 crores during the same timeframe.
As of May 2023, Hindustan Aeronautics Limited has an order book worth Rs. 81,784 Crores, which consists of Manufacturing Contracts, Repair and Overhaul, Design and Development Projects, supply of spares, and exports. Moreover, HAL expects an estimated order value of almost Rs. 48,000 crores to be concluded in the coming financial year.
Furthermore, it has a strong customer base that consists of the Indian Air Force, the Indian Navy, the Indian Coast Guard, ISRO, DRDO, and Some of the international clients are Airbus Industries, Boeing, GE Aviation, Honeywell International, Rolls Royce Plc, and many more.
Headquartered in Bangalore, Hindustan Aeronautics was incorporated in 1963. The company is engaged in the business of manufacturing Aircraft and Helicopters and repairing, and maintenance of Aircraft and Helicopters. They are the Indian government’s prime manufacturer of defence machinery in the Aeronautic segment.
Written By Vaibhav Patil
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