The shares of this Maharatna stock are in focus after the company announced that it has secured an order worth Rs 511 crore from ISRO. In this article, we will dive more into the details.
With a market capitalisation of Rs 3,34,067 crores, the shares of Hindustan Aeronautics Ltd are currently trading at Rs 4,995 per share, down by 12 percent from its 52-week high of Rs 5,675 per share. Over the past five years, the stock has delivered an impressive return of 1,214 percent.
The company, through a stock exchange filing, announced that it has become a successful bidder for the manufacturing and design technology of the Small Satellite Launch Vehicle (SSLV), developed by ISRO.
According to sources, the value of the contract is worth Rs 511 crore, where it aims to manufacture 6-8 SSLV rockets every year, which could generate $6.5 million revenue per launch.
Under this contract, HAL will be responsible for the mass production of SSLV to meet Indian and Global demand that includes comprehensive design, manufacturing, quality control, integration, launch operations, and post-flight analysis documentation, as well as training and support for technology absorption.
Financial Highlights
The company reported a revenue of Rs 30,981 crores, up by 2 percent from its FY24 revenue of Rs 30,381 crores. Additionally, it reported a net profit growth of 9.75 percent to Rs 8,364 crore in FY25 from Rs 7,621 crores in FY24. The stock delivered an ROE and ROCE of 26.07 percent and 33.87 percent and is currently trading at a P/E of 39.98x as compared to its industry peers of 76x.
Hindustan Aeronautics Limited (HAL) is an important Indian aerospace and defence organisation. HAL designs, manufactures, and services aircraft, helicopters, aero-engines, and avionics. HAL produces components, including cryogenic engines and cruise missile guidance.
HAL provides MRO services for aircraft and powerplants. HAL is engaged in the defence and civil aviation and has also been involved in the space sector, which includes Articulated Wall Climbing Robots, Exo-atmospheric Multiple Kill Vehicle, and numerous Export programs.
Written by Satyajeet Mukherjee
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