Hindustan Aeronautics announces stock split; declares final dividend of Rs 15 per share

Hindustan Aeronautics Ltd (HAL), in its Board meeting on Tuesday, recommended a sub-division of equity shares or stock split in a 1:2 ratio. "The Board has recommended sub-division/stock split of existing 1 (one) equity share of face value of Rs 10/- each fully paid up into 2 (two) equity shares of Rs 5 each fully paid up. The record date for the purpose of sub-division of equity shares shall be Friday, 29 September, 2023, if sub-division is approved by the shareholders at AGM," the state-owned aerospace and defence company said in an exchange filing.

The company has also declared a final dividend of Rs 15 per equity share for the financial year 2022-23 (FY23). "A final dividend of Rs 15 per equity share of Rs 10 each fully paid up (150 per cent) for FY23, which shall be paid to the shareholders within 30 days from the date of its approval. Further information in this regard including record date etc. shall be submitted with the concerned stock exchanges in due course," HAL stated.

Shares of HAL were last seen trading 0.84 per cent lower at Rs 3,669 today over its previous close of Rs 3,700.20. Turnover on the counter came at Rs 19.32 crore, commanding a market capitalisation (m-cap) of Rs 1,23,083.02 crore.

The stock has gained 44.83 per cent in 2023 so far and 103.48 per cent in the past one year. As of March 2023 quarter, the government held 71.65 per cent or 23,95,88,844 shares of the company.

Brokerages have remained largely positive on HAL, given its order backlog of Rs 82,000 crore and robust order pipeline of over Rs 1,50,000 crore in the long term.

"Fructification of probable MOU with General Electric (GE) for fighter jet engines would pave the way for further technology transfer/absorption from countries like the US and could be a key growth catalyst. The company expects double-digit revenue growth from FY2025E when deliveries of LCA Tejas MK1A kick in. It aims 14 per cent revenue growth from FY2026E," said Sharekhan. HAL has a healthy cash balance of over Rs 20,000 crore, the brokerage added.

Antique Stock Broking said it remains confident of HAL's business prospects. "India is in the midst of modernising its armed forces due to obsolescence and the geopolitical situation. This should lead to strong ordering for fighter aircrafts and helicopters, along with developing their respective engines and accessories. We maintain 'Buy' rating with a target price of Rs 4,115," it stated.

Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in banks, financials, metal and healthcare stocks.

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