Shares of Hindustan Aeronautics Ltd hit a new 52-week high on Thursday, on the back of strong July-September quarter numbers, and recent order wins.
Shares of the company were trading at ₹2,695 per share, up 0.48%, or ₹11.35 per share on the BSE at 12.30 pm.
On November 11, the defense public sector undertaking’s consolidated net profit for the quarter ended September surged 44.2% on year to 1221.23 crore rupees from 846.76 crore rupees. However, consolidated revenue from operations saw a dip over 7% on year.
During the 2022-23 (April-September), the Bengaluru-based company received fresh orders worth 10,251 crore rupees. On Wednesday, the company obtained letter of intent for nine helicopters from Indian Coast Guard.
Brokerage houses are bullish on the stock and maintain ‘buy’ rating. “We see Hindustan Aeronautics Ltdin a sweet spot, riding on its solid orderbook,” said ICICI Securities Ltd.
“In our view, strong order pipeline along with development projects in progress are likely to maintain earnings momentum in medium to long run,” brokerage firm added.
On the technical front, analysts see an overall positive trend in the stock, and suggests any dips to be a buying opportunity.
“We saw a good traction in this counter yesterday backed with strong volumes, and have a strong view on this counter. The stock has broken above September swing high, and we expect extension of this up move likely towards 2,800. The support is seen around 2,630 followed by 2,580, said Rajesh Bhosale, equity technical and derivative analyst, Angel One.
On the other side, Amit Trivedi, market analyst, assistant vice president - technical and derivatives research at Yes Securities, said thatthe stock is steadily moving higher, however in today's trade minor throwback is visible off the high.
“The stock is up by 121% this year so far, some profit taking cannot be ruled out.Traders are advisable to trim some buy positions, and trail stop loss to 2,550 for remaining quarter,” he added.
Further, according to Ruchit Jain, lead research, 5 paisa.com, the defence space has been witnessing good buying interest even after the recent upmove. Hindustan Aeronauticsseems to have resumed its uptrend post the recent timewise correction, and hence the outlook remains positive.
The company has an upcoming dividend of 20 rupees per share due on November 18. Since, March 28, 2019, the company has declared 8 dividends.
In the past 12 months, Hindustan Aeronautics has declared an equity dividend amounting to 50 rupees per share.
At the current share price of 2,674.35 rupees, this results in a dividend yield of 1.87%.
According to a MintGenie poll, an average of eight analysts recommends ‘strong buy’ on the stock.