Multibagger PSU defence major notches fresh all-time high: Here’s why

Shares of Hindustan Aeronautics (HAL), the defence major in trade, hit their fresh all-time high of Rs 2,095, up 3 per cent over the previous close on Friday. The stock gained after the incorporation of the company’s joint venture.

The company informed the bourses that its joint venture entity with Safran Helicopter Engines SAS, by the name of Safhal Helicopter Engines Private Limited has been incorporated.

In the filing, the aerospace and defence entity said that the newly formed joint venture will carry out the business of design, development, certification, production, sale, and support of helicopter engines, with one of the first opportunities identified as an engine for Indian Multi-Role Helicopter (IMRH) and Deck-Based Multi-Role Helicopter (DBMRH) projects.

The last time the stock hit its 52-week high level was on September 11.

In the last one year, the stock has plummeted by 14 per cent, while its three-year return is at 188 per cent.

The consensus recommendation from 10 analysts on the stock is ‘Buy’, Trendlyne data shows.

The company’s September quarter earnings are also expected today. In the previous quarter, the company’s revenue increased YoY to Rs 4,325.3 crore. Net profit at the company also soared to Rs 814.2 crore versus Rs 620.1 crore logged in the same quarter last year.