HAL's Share Price Soars After Stock Split and Tejas Fighter Jet Order
HAL's share price has surged 112% in the past seven months, driven by a stock split and a major order for Tejas Fighter Jets. The company's strong order book and healthy revenue growth visibility have further boosted investor confidence.
The stock split, which took place in September 2023, aimed to enhance liquidity and attract retail investors. HAL's recent success in securing an order for 97 Tejas Fighter Jets from the Defence Ministry has also contributed to the rally.
The company's order backlog stands at around Rs 1 trillion, with approximately 75% contributed by manufacturing contracts and 23% by repair and overhaul contracts. Analysts expect approximately Rs 2 trillion worth of contracts to be placed with HAL in the coming years.
HAL's stock is currently trading above the target price of Rs 3,660 per share set by ICICI Securities. However, the company's strong order book and growth prospects suggest that the rally may have further room to run.