This Defence stock which deals in the business of Aircraft Manufacturing and Helicopters including Repairs and Maintenance is in focus after the Chairman and MD of the company comments on increasing the order book by Rs. 1 lakh crore in next year.
Share Price Movement
With a market capitalization of Rs. 2,43,768.49 Crores, the shares of Hindustan Aeronautics Limited were down by 4.3 percent in the day’s trade touching a day’s low of Rs. 3,618 per share.
The stock reiterated from the day’s low and closed at Rs. 3,649 which is 3.53 percent lower than the previous closing price of Rs. 3,782.35 apiece. It has delivered a return of 28 percent which has outperformed the Nifty Index in the past year.
What happened
The company’s stock is in focus after the Chairman and Managing Director Dr. DK Sunil at Aero India 2025 said “Currently, we have orders worth Rs. 1.2 lakh crore. We anticipate adding another Rs. 1 lakh crore to our order book in the next year” as per sources.
Defence Budget Allocation
In the recently announced Union Budget 2025-26, the allocation towards the Defence Ministry stood at Rs. 6,81,210 crore constituting around 13.45 percent of the Union Budget and an year on year increase of 9.53 percent from Rs. 6,21,940.85 crore in 2024-25.
India’s expected production for FY26
Defence Minister Rajnath Singh recently said India’s Defence Production hit Rs. 1.27 lakh crore and is expected to touch Rs. 1.6 lakh crore by 2025-26. Exports crossed Rs. 21,000 crores and aim to touch Rs. 30,000 crores.
Discount from 52W high
HAL stock had touched its 52W high price of Rs. 5,675 on 9th July 2024. Since then, the stock has been trading at a discount of around 35 percent from its 52W high.
Q2FY25 Financial Highlights
The financial results for the quarter ending September 2024, Its consolidated revenue from operations has increased by 6.03 percent year on year from Rs. 5,636 crores in Q2FY24 to Rs. 5,976 crores in Q2FY25 and increased by 37.44 percent quarter on quarter from Rs. 4,348 crores in Q1FY25.
The company’s consolidated net profit has increased by 22.06 percent year on year from Rs. 1,237 crores in Q2FY24 to Rs. 1,510 crores in Q2FY25. As compared to Q1FY25, the company’s net profit has increased by 5.08 percent quarter on quarter from Rs. 1,437 crore.
Business Segments
The company recognizes its revenue from operations from Defence production as of the September 2024 quarter.
Company Overview
Hindustan Aeronautics Limited (HAL) was established in 1940 and is an Indian public-sector aerospace and defense company. They design, manufacture, develop, and maintain aircraft, engines, helicopters, and related components.
Written By Santhosh S
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