HAL stock can provide financial security
Hindustan Aeronautics Ltd (NS:) remains the top pick among major defense stocks considered in the aerospace industry. Shri R Madhavan is Chairman and Managing Director of HAL and is also seeking an additional charge as Director (Operations). Shri CB Ananthakrishnan has been appointed Director (Finance) of the Company with effect from 1 August 2018. Prior to his appointment as Director (Finance), he held the position of Executive Director (Finance) of our Company.
HAL has equity of 3,343.90 crore. HAL is currently available with a face value of INR 10. HAL paid a dividend of INR 40 to its shareholders in the financial year 2021-22. The current price of HAL is INR 1398.05 per share and its EPS TTM FY 2022 is 107.64 and it is trading at a PE of 12.99. The 52 week high price of HAL was INR 1568.45 and the 52 week low price was INR 925.
The future of HAL looks very bright and if investors stay invested for the long term over around 15 years, unlimited growth, EPS, dividends and bonuses can be seen. HAL can provide a good return in the form of a pension through dividends and an unlimited future price can be reflected due to an increase in the number of shares due to the bonus and the division of its face value. The investor can benefit if he invests around 300 stocks in his portfolio.
HAL is involved in the manufacturing and production of aircraft (Hawk, LCA, Sukhoi-30 MKI, IJT, Dornier and HTT 40), helicopters (Dhruv, Cheetah, Chetak, Lancer, Cheetal, Rudra, LCH and LUH) , future products (IMRH, UAV, RUAV and Sport), Powertrain (ADOUR MK 871, GARRETTE TPE 331-5, RD 33, AL 31 FP, SHAKTI, ARTOUSTE III B, PTAE-7 AND LM2500), Avionics (System Inertial Navigation System, Auto Stabilizer, Head-Up Display, Laser Range System, Flight Data Recorder, Communication Equipment, Radio Navigation Equipment, Airborne Secondary Radar, Inertial Navigation for Missiles, Radar Computers, Ground Radars), System and Accessories (hydraulic system, wheels and brake system, flight controls system, ejector release units, panel instruments, gyro/barometric instruments, oxygen system, fuel management system and hydraulic pumps), aerospace (structures, tanks and cryogenic engines) and materials (casting, general forgings, precision forgings, powder metallurgy, rubber products, rolled rings and composites).
HAL provides services in the areas of Aircraft MRO, Helicopter MRO, Power Plants and Systems, Accessories and Avionics. HAL is involved in exports. HAL’s cost-effective and extensive skillset is available to the international aerospace community. HAL has proven capabilities and offers collaboration agreements in the areas of manufacturing machine components, sheet metal, assemblies, sub-assemblies, and design and development tasks (structural analysis, 3D modeling and testing) . HAL has the ability to perform design development tasks such as master geometry development, detailed design analysis, wind tunnel model testing, aircraft structure and subsystem testing. HAL is also involved in the digitization of plans (2D and 3D modeling) for the largest aeronautical companies in the USA and Europe. HAL Dornier DO-228 is a light transport aircraft manufactured under license from M/s. Dornier GmbH from Germany. HAL provides spare parts, repair and overhaul services for aircraft and engines. Testing facilities are available at HAL for materials testing and environmental testing of components. Hal provides civilian products such as the DHRUV-ALH upgraded civilian helicopter and the Do-228 (civilian) aircraft. HAL provides ITSO products such as air data computers.