homebusiness Newscompanies News

HAL shares see 83% rally in the year as buyers' interest in its defence aircraft rises

HAL shares see 83% rally in the year as buyers' interest in its defence aircraft rises

HAL shares see 83% rally in the year as buyers' interest in its defence aircraft rises
Read Time2 Min(s) Read
Profile image

By CNBCTV18.com Aug 11, 2022 2:05:04 PM IST (Updated)

The company has been performing strongly in terms of revenue. Since the financial year 2015, the company has only recorded an increasing trend in revenue. For FY22, the company recorded the highest ever revenue of over Rs 24,000 crore.

Shares of Hindustan Aeronautics Limited surged over 5 percent on Thursday ahead of the company reporting its financial year earnings report for the April-June quarter on Friday.

Recommended Articles

View All

In the year so far, the defence stock has made investors richer by gaining over 84 percent. At 11:51 am stocks of HAL were trading at Rs 2,273, a 5.03 percent up from the previous close on the BSE.
The company has been performing strongly in terms of revenue. Since the financial year 2015, it has only recorded an increasing trend in revenue. For FY22, HAL recorded the highest ever revenue of over Rs 24,000 crore.
Net income grew 56.5 percent and stood at Rs 6,400 crore. As a result, earnings per share increased to the highest ever, Rs 151.92 for FY22.
Why have the stocks of HAL been surging?
The company’s robust performance and business outlook have fuelled investors' interest in the stock. HAL has benefited from the Indian government's efforts to increase defence indigenisation.
The Defence Ministry informed Parliament on Friday that HAL has responded to the Request for Proposal issued by Royal Malaysian Air Force for 18 Fighter Lead in Trainer – Light Combat Aircraft (FLIT – LCA) offering the Light Combat Aircraft Tejas twin-seater variant.
“Other countries which have evinced interest in LCA aircraft are: Argentina, Australia, Egypt, the U.S., Indonesia, and the Philippines,” said Ajay Bhatt, Minister of State for Defence.
The company's last financial year earnings report notified that the current order book stands at Rs 82,000 crore. The defence company also expects to clock 6-7 percent revenue growth for FY23.
“We project the same amount of increase in our revenues, 6-7 percent and beyond that, we intend to increase our revenues because of new projects coming into play. So, FY24-25 onwards, it will definitely increase,” R Madhavan, chairman and managing director, HAL, told CNBC-TV18.
Apart from orders from the Ministry of Defence, HAL is also in talks with bagging contracts from Egypt, Malaysia and Nigeria for Tejas, as reported by news agency PTI. Last month HAL also offered to set up production facilities for the Tejas aircraft and helicopters in Egypt.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng