The board of Hindustan Aeronautics Ltd (HAL) approved splitting the shares in the proportion of 1:2 on June 27, 2023. Moreover, the company also declared a final dividend of Rs 15 per share for the FY23 which is 150%, shall be paid to the shareholders within 30 days from the date of its approval.
In the board meeting, it recommended a sub-division of equity shares or stock split in a 1:2 ratio which is a stock split of existing 1 equity share having a face value of Rs 10 each fully paid up into 2 equity shares of Rs 5 each fully paid up.
The company has fixed September 29, 2023, as the record date for determining the eligibility of shareholders regarding the proposed stock split.
Typically, a stock split is carried out to enhance the market liquidity of a stock. Shareholders who retain the stock until the record date will receive the new shares in their demat accounts and the stock price will be adjusted following the specified split ratio.
Furthermore, as of today, the stock has been removed from the ban list of Future & Options (F&O). The stock’s June contracts were under the ban list as the stock exceeded, the open interest of 95% of the Market Wide Positions Limits (MWPL).
Today, the stock commenced trading at Rs 3739.50, representing a 1.1% increase from the previous day’s closing price of Rs 3700.20.
Eventually, it concluded the day at Rs 3666 on the BSE. The stock’s 52-week highs and lows are Rs 3950 and Rs 1718 respectively. Currently, its market capitalisation stands at Rs 122586.46 Crore.
Over the past year, the stock has delivered an impressive return of 102%, while in the last three years, it has achieved a remarkable multibagger return of 380%.
If we check the company’s financials, annual revenue experienced a substantial increase of 9.3%, rising from Rs 24,620 Crore to Rs 26,928 Crore. The operating profit of the company stands at Rs 6,663 Crore, accompanied by an operating profit margin of 25%. Furthermore, the net profit of the company amounts to Rs 5,811 Crore. The company’s return on capital employed (ROCE) and return on equity (ROE) are reported as 30.6% and 27.2%, respectively.
In terms of ownership, the promoters hold 71.65% of the company’s shares, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 9.07% and 13.93%, respectively.