This Monopoly Defence stock engaged in designing, manufacturing, and maintaining aircraft, helicopters, engines, and aerospace systems for defense and civil sectors, supporting India’s aviation and defense infrastructure, is in focus after the company targets its Capex of Rs. 3000 crore for the financial year 2026.
With a market capitalization of Rs. 341,533.36 crore, the shares of Hindustan Aeronautics Limited closed at Rs. 5106.85 per equity share, rising nearly 4.98 percent from its previous day’s close price of Rs. 4864.40.
Hindustan Aeronautics Limited (HAL) was established on 23 December 1940 and is a premier Indian public sector aerospace and defence company. It is among the oldest and largest aerospace manufacturers globally. HAL is a Maharatna Public Sector Undertaking under the Ministry of Defence, Government of India, and plays a central role in India’s defence manufacturing ecosystem
Expansion Plan: The company is focused on expanding its capacity to meet customer needs and future projects. The company is increasing capital expenditure (CAPEX) and boosting research and development (R&D) to support long-term growth. Over the next five years, HAL plans to invest Rs. 14,000 to Rs. 15,000 crores.
In FY26, HAL is targeting a CAPEX of Rs. 3,000 crores. The company is also looking to monetize non-core land in Delhi to fund its projects. Along with this, HAL is working on greenfield projects and expanding its production lines. New facilities like a helicopter factory in Tumakuru and a third LCA line in Nashik are also being developed to ensure sustained growth and success.
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Order Book
The company currently has an order book of Rs. 94,000 crores, which is almost 12,000 crores more than last year’s order book of Rs. 82,000 crores. The company anticipates significant contracts for various defense projects, including the LCA Mark 1A, Light Combat Helicopters, Advanced Light Helicopter, Dornier aircraft, and Utility Helicopter Marine.
Over the next 18 months to 3 years, HAL expects orders to range from Rs. 160,000 to Rs. 170,000 crores, ensuring a strong demand for its products. The company plans to keep its manufacturing lines fully occupied until 2032, securing long-term growth and stability.
Financial highlights:
Hindustan Aeronautics Limited’s revenue has decreased from Rs. 14,769 crore in Q4 FY24 to Rs. 13,700 crore in Q4 FY25, which is a decrease of 7.24 percent. The net profit has also decreased by 7.70 percent, from Rs. 4,309 crore in Q4 FY24 to Rs. 3,977 crore in Q4 FY25.
Hindustan Aeronautics Limited’s revenue and net profit have grown at a CAGR of 7.96 percent and 18.08 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE should be 33.9 percent and 26.1 percent, respectively. Hindustan Aeronautics Limited has an earnings per share (EPS) of Rs. 125.
Written By – Nikhil Naik
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