ब्रेकिंग न्यूज़

HAL Share Price Surges After ₹26,000 Crore Order Win, Analysts Bullish on Long-Term Growth

Shares of Hindustan Aeronautics Limited (HAL) have been in focus after the company received a ₹26,000 crore order for 240 AL-31 FP aero-engines from the Cabinet Committee on Security. The deliveries for the order are expected to begin in a year and be completed over an eight-year period.

The stock has surged over 5% following the announcement, trading at ₹4,837.5 as of September 3, 2024. However, the share price is still down 17% from its record high of ₹5,674.

Challenges in Tejas Deliveries, but Robust Order Backlog

Despite the positive news, HAL has faced some challenges in delivering the new Tejas Light Combat Aircraft (LCA) for the current financial year and beyond. This is attributed to delays in engine deliveries from General Electric.

HAL had assured the Indian Air Force that it would deliver 16 LCA Mk1A jets in FY 2024-25 and 83 by FY 2029. However, the first delivery, initially scheduled for March 31, 2024, has been pushed back to November 2024.

Nevertheless, the ₹26,000 crore order will further bolster HAL’s already strong order backlog, which stood at ₹94,000 crore at the end of FY 2024 and is expected to reach ₹1.2 lakh crore.

HAL Share Price Analysts Maintain “Buy” Recommendation

Brokerage firm Antique Stock Broking has maintained its “buy” recommendation on the stock with a price target of ₹6,145. The firm believes that despite the near-term volatility in earnings due to Tejas delivery challenges, HAL shares are “attractively valued” with a multi-year, double-digit earnings growth potential and a robust return-ratio profile of over 20%.

Key Financials and Valuation Metrics

As of September 12, 2024, HAL’s share price was ₹4,641.70, with a market capitalization of ₹310,425.3 crore. The company’s P/E ratio stands at 37.7, and the PB ratio is 10.7. HAL reported an operating revenue of ₹30,813.23 crore on a trailing 12-month basis. The company’s Return on Equity (ROE) is approximately 27.18%.

Upcoming Corporate Actions and Dividends

HAL’s board is scheduled to meet on August 14, 2024, to announce the quarterly results. The company has also declared a final dividend of ₹13 per share (260%) for FY 2024.

Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.

Jiya

Jiya Singh is an experienced Hindi and English news writer with nearly 5 years of experience in the media industry. She started her career with an online news website Newz Fast, where she worked in many sections including Hindi news and business. She loves writing and reading news related to technology, automobile and business. She has covered all these sections extensively and presented excellent reports for the readers. Jiya Singh has been trying to provide correct and accurate information to the readers on Local Haryana for the last 1 year.

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