Multibagger Defence Stock HAL Hits Record High Amid Highest-Ever Revenue from Operations

At the onset of the new financial year, we are witnessing one defence stock setting new records. This multibagger defence stock, Hindustan Aeronautics Ltd (HAL), has touched a high of Rs. 3454.25 on NSE, and currently, it is trading up by nearly 3%. The stock opened with a gap-up at a level of Rs. 3392. Thereafter, it marked an intraday low of Rs. 3362.10; however, buying emerged at lower levels, and since then, there has been no looking back for the stock as it has gone from strength to strength, touching a fresh all-time high.

Highest-ever revenue from operations

In a recent development, HAL recorded the highest ever revenue from operations of over Rs. 29,810 crores (provisional and unaudited) for the financial year ended on March 31, 2024, registering a double-digit growth of around 11% compared to 9% in the previous financial year. The corresponding figure for the previous year was Rs. 26,928 crore.

Fresh Contracts in FY24

HAL received fresh manufacturing contracts of over Rs. 19,000 crores and repair and overhauling (ROH) contracts of over Rs. 16,000 crores during FY 2023-24.

Guyana Defence Forces

An export contract with the Guyana Defence Forces for the supply of 2 Nos. Hindustan 228 aircraft was signed in the current FY 2023-24, and both aircraft have been supplied in record time within a month of signing the contract due to the proactive approach of the Company.

The Company has maintained the growth momentum and achieved an all-round improved performance. A very significant milestone was achieved with the first production series fighter of LCA Mk1A completing its maiden flight on March 08, 2024.

FY2023-24 was very eventful for HAL and was dotted with high-profile visits and achievements that make the year special on various fronts such as customer satisfaction, branding & recognition, and building stakeholder trust and confidence.

HAL and General Electric

During the year, HAL and General Electric, USA, signed an MoU for ToT and Manufacturing of GE-414 aero-engine in India for LCA MK2 Aircraft. The Company would receive 80% technology transfer for this program, which would transform the Indian Aero Engine Manufacturing Ecosystem to be self-reliant.

JV with SAFHAL Helicopter Engines

A Joint Venture “SAFHAL Helicopter Engines Pvt. Ltd.” was formed with Safran Helicopter Engines, France, for indigenous design and development of Engines for IMRH and DBMRH.

Make-in-India enhances export potential

During FY24, HAL and Airbus signed a contract for establishing MRO facilities for the A-320 family of aircraft in New Delhi. This collaboration will strengthen the Make-in-India mission and also enhance export potential.

HAL, with a robust order book and accelerated delivery plan, is expected to sustain and improve the growth trajectory and support the Indian Defence services in their endeavor towards Defence preparedness of the country.

Stock performance

The stock of HAL has delivered multi-bagger returns in the last three years, jumping 230.23%, while in the last three months, it has surged by 21%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.