Big momentum may come in Hindustan Aeronautics (HAL) share price after Rs 4680, price may go up to Rs 4887.
Hindustan Aeronautics Ltd (HAL) continues to be a focal point in the Indian stock market as of September 13, 2024. The company, which specializes in aerospace and defense manufacturing, has seen fluctuations in its stock price, reflecting broader market trends and company-specific developments.
Main Points
As of today, HAL’s share price is approximately ₹4,649.75, showing a slight increase of 0.17% from the previous session’s close of ₹4,598.75. The stock has experienced a 52-week high of ₹5,675 and a low of ₹1,767.95, indicating significant volatility over the past year. The market capitalization stands at around ₹3,12,651 crore, positioning HAL as a major player in the aerospace sector.
Major Contract Awarded
One of the key drivers for HAL’s recent stock performance is the contract awarded by the Ministry of Defence (MoD) for 240 AL-31FP aero engines for Su-30MKI aircraft, valued at over ₹26,000 crore. This contract, signed on September 9, 2024, is expected to significantly enhance HAL’s order backlog, which is projected to grow from ₹94,000 crore to ₹1.2 lakh crore. This substantial order book provides strong revenue visibility, estimated at 3.8 times its trailing 12-month revenue.
Potential Maharatna Status
Another exciting development for HAL is the potential upgrade to ‘Maharatna’ status, which could occur by the end of this year. This status would grant HAL greater operational and financial autonomy, allowing it to invest up to ₹1,000 crore in single projects without government approval. Currently, HAL is classified as a ‘Navratna’ company, and the upgrade would further enhance its capabilities in the defense sector.
Financial Performance
HAL has shown impressive financial growth, with a reported profit of ₹1,435.59 crore on a total income of ₹5,085.21 crore for the quarter ending June 2024. This performance reflects a robust profit margin and operational efficiency, which are attractive to investors. The company’s return on equity (ROE) stands at 26.15%, indicating effective management and profitability.
Market Sentiment and Technical Analysis
Despite the positive news, HAL’s stock has faced some headwinds, with a 1.5% decline over the past month. However, it has surged approximately 65% year-to-date, showcasing resilience amid market fluctuations. Analysts suggest that the stock’s technical indicators, including a PE ratio of around 38.88 and a PB ratio of 10.79, reflect a healthy valuation compared to industry peers.
Support and Resistance Levels
Investors are closely monitoring key support and resistance levels. The upper circuit limit is set at ₹5,122.50, while the lower limit is ₹4,191.20. These thresholds will be crucial in determining the stock’s short-term price action.
Future Expectations
Looking ahead, HAL’s stock is expected to remain in focus as it continues to secure significant contracts and potentially achieves Maharatna status. The company’s commitment to increasing indigenous content in its manufacturing processes aligns with the government’s Aatmanirbhar Bharat initiative, which aims to boost local production in defense and aerospace sectors
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
