HAL: Multibagger defence PSU stock rises 2% on fixing record date for dividend

Hindustan Aeronautics Ltd. shares rose over 2% after announcing February 14, 2025, as the record date for its dividend. The company plans to disburse dividends within 30 days post-AGM approval. HAL's strong Q2FY25 results showed a 22.4% profit increase year-on-year.

Pranati Deva
Published5 Feb 2025, 09:56 AM IST
HAL: Multibagger defence PSU stock rises 2% on fixing record date for dividend
HAL: Multibagger defence PSU stock rises 2% on fixing record date for dividend

Shares of Hindustan Aeronautics Ltd. (HAL) surged over 2 percent in intra-day trading on Wednesday, February 5, following the company’s announcement of the record date for its upcoming dividend. The state-run defence equipment manufacturer has set Friday, February 14, 2025, as the record date, meaning only shareholders who hold HAL shares as of that date will be eligible to receive the dividend payout.

According to the company’s regulatory filing, the dividend will be disbursed to eligible shareholders within 30 days of its approval at the Annual General Meeting (AGM). HAL further disclosed that its board of directors will meet on Wednesday, February 12, 2025, to consider and approve the audited financial results for the quarter and period ending December 31, 2024, where the dividend will also be officially declared.

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Dividend History and Stock Split

HAL has been a consistent dividend payer, delivering two dividends in 2024. The company issued an interim dividend of 440 percent, amounting to 22 per share (ex-date: February 20, 2024), followed by a final dividend of 260 percent, valued at 13 per share (ex-date: August 21, 2024). This brought the total dividend payout for FY24 to 700 percent, equating to 35 per share.

HAL previously undertook a stock split in September 2023, dividing each equity share of 10 into two equity shares of 5 each, making the stock more accessible to investors. The highest dividend paid by the company on record was 33.25 per share in March 2020.

Strong Financial Performance in Q2FY25

HAL posted robust financial results for the second quarter of FY25, with a 22.4 percent year-on-year increase in consolidated net profit, which rose to 1,510.49 crore from 1,236.67 crore in the same quarter last year. The company’s revenue from operations grew 6 percent year-on-year to 5,976.29 crore, up from 5,635.70 crore in Q2FY24.

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At the operational level, HAL’s earnings before interest, tax, depreciation, and amortization (EBITDA) expanded 7.3 percent year-on-year to 1,640 crore, compared to 1,527.7 crore in Q2FY24. The EBITDA margin improved slightly to 27.4 percent from 27.1 percent in the previous year.

The company’s total assets stood at 86,529.75 crore at the end of September 2024, compared to 78,095.18 crore as of March 31, 2024, reflecting its steady financial growth and operational expansion.

Stock Price Trend

The PSU stock rose as much as 2.3 percent to its day's high of 3,830. It has risen over 27 percent in the last 1 year but shed over 4 percent in February so far, extending losses for the third straight month after an around 6 percent fall in January and almost 7 percent in December 2024.

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First Published:5 Feb 2025, 09:56 AM IST

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