According to a recent filing with the exchange, the Indian government announced its plan to sell up to a 3.5% stake in aerospace and defense company Hindustan Aeronautics Ltd at a floor price of Rs 2,450.
The filing further mentioned that the government has proposed to sell 1.75% of its equity shares on March 23rd & March 24th and an additional 1.75% stake in an event where the oversubscription option is exercised. 10% of the offered size is to be reserved for retail investors subject to the receipt of valid bids.
The company started its trading session at Rs 2,493 and is currently trading at a price of Rs 2,503. The stock has dipped almost 5 percent today as compared to the previous closing price of Rs 2,624.80. Despite the short-term downfall faced by the company, it has provided a decent return of around 78 percent to its shareholders within a time span of one year.
HAL, headquartered in Bengaluru, Karnataka, is an aerospace and defense company owned by the government of India. It develops, designs, manufactures, and supplies aircraft, helicopters, avionics, and communications equipment for military and civil markets. It is also involved in providing repair, maintenance, and support services for aircraft. The company operates through a network of production facilities, and research and design centers in India.
Digging into the financials of the company, there is a contrasting effect with respect to the revenue and net profit figures reported by the company. Revenues have moved up from Rs 5,144.79 crores in Q2 to Rs 5,665.54 crores in Q3. Net profits, on the other hand, moved down from Rs 1,218.94 crores in Q2 to Rs 1,153.92 crores in Q3.
The profitability ratios of the company have been promising with a consistent increase on a YoY basis. ROE shifted from 22.64 percent in FY20-21 to 29.25 percent in FY 21-22. ROCE showed a shift from 26.26 percent in FY 20-21 to 30.37 percent in FY 21-22.
As per the quarter ending December 2022, promoters hold a constant 75.15 percent stake in the company. FIIs, showing faith in the operations of the company, have increased their stake from 6.85 percent in Q2 to 7.14 percent in Q3.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
