“Hindustan Aeronautics Announces Stock Split and Final Dividend of Rs 15 per Share, Bolstering Growth Prospects”

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Hindustan Aeronautics Ltd (HAL), the state-owned aerospace and defence company, has made significant announcements during its recent board meeting. The company recommended a sub-division of equity shares or stock split in a 1:2 ratio. This means that each existing equity share of face value Rs 10 will be split into two equity shares of Rs 5 each, fully paid up. The record date for the sub-division of equity shares is set for Friday, 29th September 2023, subject to approval by the shareholders at the Annual General Meeting (AGM).

hal-board-to-consider-stock-split-on-june-27

Hindustan Aeronautics Ltd (HAL), the state-owned aerospace and defence company, has made significant announcements during its recent board meeting. The company recommended a sub-division of equity shares or stock split in a 1:2 ratio. This means that each existing equity share of face value Rs 10 will be split into two equity shares of Rs 5 each, fully paid up. The record date for the sub-division of equity shares is set for Friday, 29th September 2023, subject to approval by the shareholders at the Annual General Meeting (AGM).

In addition to the stock split, HAL also declared a final dividend of Rs 15 per equity share for the financial year 2022-23 (FY23). This dividend, amounting to 150 percent of the face value, will be paid to the shareholders within 30 days from the date of its approval. The company will provide further information regarding the record date and other details to the concerned stock exchanges in due course.

HAL’s stock price experienced a slight decrease, trading 0.84 percent lower at Rs 3,669 compared to its previous close of Rs 3,700.20. The turnover on the counter stood at Rs 19.32 crore, with a market capitalization (m-cap) of Rs 1,23,083.02 crore. However, HAL’s stock has demonstrated significant growth, rising by 44.83 percent in 2023 and 103.48 percent over the past year.

Analysts and brokerages have expressed optimism regarding HAL’s prospects, considering its strong order backlog and robust order pipeline. The company’s order backlog currently stands at Rs 82,000 crore, with a long-term order pipeline exceeding Rs 1,50,000 crore. The potential memorandum of understanding (MOU) with General Electric (GE) for fighter jet engines is anticipated to facilitate technology transfer and absorption from countries like the United States, presenting a key growth catalyst for HAL. Furthermore, the company expects double-digit revenue growth from FY2025E with the commencement of LCA Tejas MK1A deliveries. HAL aims for a 14 percent revenue growth from FY2026E.

With a healthy cash balance of over Rs 20,000 crore, HAL is well-positioned to capitalize on future opportunities. Brokerages such as Sharekhan and Antique Stock Broking maintain a positive outlook on HAL, emphasizing the modernization efforts of India’s armed forces and the resulting demand for fighter aircraft and helicopters.

In conclusion, Hindustan Aeronautics Ltd’s stock split and declaration of a final dividend reflect the company’s commitment to its shareholders and its confidence in its future growth prospects. With a strong order backlog, a robust order pipeline, and favorable market conditions, HAL is poised to further strengthen its position in the aerospace and defence sector.

Sources By Agencies

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685 thoughts on ““Hindustan Aeronautics Announces Stock Split and Final Dividend of Rs 15 per Share, Bolstering Growth Prospects”

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