HAL To Consider Final Dividend For FY25 On June 27
In fiscal 2024, a final dividend of Rs 13 apiece was paid to shareholders by Hindustan Aeronautics.
Hindustan Aeronautics Ltd.'s board is set to meet on June 27 to consider the final dividend for financial year 2025, as per a disclosure to the stock exchanges on Thursday.
This marks the second dividend that HAL will issue this fiscal. The defence PSU had paid an interim dividend of Rs 25 per share in February. In fiscal 2024, a final dividend of Rs 13 apiece was paid to shareholders.
Brokerages view HAL as a defence darling counter, with Jefferies and Antique recently issuing bullish counters on the stock. Jefferies has a 'buy' call on the counter with a target price of Rs 6,475, implying a potential 30% upside from the previous close. Antique maintains a similar recommendation at a target price of Rs 6,545 apiece.
Jefferies sees a whopping 50% upside potential for HAL in its bull case, with a price target of Rs 7,500 per share. This scenario may come into play if the Make in India programme gains momentum, propelling a higher number of domestic orders. Clearing the orders at a faster pace and gaining new tenders in the near future would be a further catalyst, as per the brokerage.
Antique believes HAL is set to be a prime beneficiary of India's push to modernise its air force, particularly through the induction of new-generation fighter jets. With the Indian Air Force aiming to expand from 32 to 42 squadrons, there’s a requirement for over 300 new aircraft, offering a multi-year opportunity for HAL through platforms like the Tejas Mk-1A, Mk-II and AMCA, noted the brokerage.
HAL has offered whopping returns of 1,284% in its journey over the past five years, with an upside of 17% year-to-date. The counter closed 2.04% lower at Rs 4,892 apiece, as compared to a 0.08% decline in the benchmark NSE Nifty 50.
