Hindustan Aeronautics hits 52-week high, Leads Midcap Gains

The Indian headline indices started the session with a bang, driven by significant gains in power, auto and banking sector stocks. At 12:45 pm, the BSE Sensex climbed 0.50%, reaching a level of 62,858. The Nifty 50 index surged 0.44% to the 18,615 level. The optimism was reflected in broader indices as well which gained along with the main indices.  

Shares of Hindustan Aeronautics Ltd led the advances in the BSE Midcap pack with gains of around 5%. On an intraday basis on Monday, shares of Hindustan Aeronautics Ltd traded at a high volume, reaching a 52-week high of Rs 3,325 per share on the BSE. Shares of the company have gained over 12% in the past month and have delivered nearly 75% returns over the last year. 

Taking into account the company’s quarterly performance, on a consolidated basis, it reported a modest growth of 8.1% from Rs 11,558.23 crore registered in Q4FY22, recording total revenue of Rs 12,494.67 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it declined 8.82% from Rs 3,105.17 crore to Rs 2,831.18 crore.      

With a 29-30% return on equity and capital employed, the company displays strong profitability. Furthermore, the PE ratio is low in comparison to its competitors. The stock can be viewed as a dividend investment as it declares dividends often.  

Hindustan Aeronautics Ltd (HAL) is a state-owned aerospace and defence company that manufactures, repairs and maintains aircraft and helicopters. The company actively participates in and makes a contribution to the country’s space programs. In 1988, a separate aerospace division was established. Through the division, HAL is now fulfilling the requirements of structures for ISRO satellites and aerospace launch vehicles. 

Considering the promising outlook for the industry and the potential for the company to grow, keep a close eye on this stock in the coming sessions.