HAL - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.8
| Stock Code | HAL | Market Cap | 2,87,891 Cr. | Current Price | 4,305 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 34.1 | Book Value | 553 ₹ | Dividend Yield | 0.94 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,538 ₹ | DMA 200 | 4,529 ₹ |
| Chg in FII Hold | 0.10 % | Chg in DII Hold | -0.03 % | PAT Qtr | 1,663 Cr. | PAT Prev Qtr | 1,377 Cr. |
| RSI | 34.0 | MACD | -108 | Volume | 5,83,980 | Avg Vol 1Wk | 7,92,846 |
| Low price | 3,046 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.92 | Debt to equity | 0.00 |
| 52w Index | 59.4 % | Qtr Profit Var | 11.9 % | EPS | 126 ₹ | Industry PE | 57.9 |
📊 Hindustan Aeronautics Limited (HAL) shows moderate potential for swing trading. The stock is trading below its 50 DMA (₹4,538) and 200 DMA (₹4,529), indicating short-term weakness despite strong fundamentals. RSI at 34.0 suggests oversold conditions, while MACD is negative (-108), reflecting bearish momentum. An optimal entry would be near ₹4,200–₹4,250. If already holding, consider exiting around ₹4,500–₹4,550, where resistance from DMA levels is expected.
Positive
- ✅ ROCE (33.9%) and ROE (26%) show excellent capital efficiency.
- ✅ Debt-to-equity ratio of 0.00 indicates zero leverage risk.
- ✅ PAT growth from ₹1,377 Cr. to ₹1,663 Cr. (+11.9%) highlights strong earnings momentum.
- ✅ EPS of ₹126 supports robust profitability.
- ✅ 52-week performance of 59.4% reflects strong investor sentiment.
Limitation
- ⚠️ MACD negative (-108) shows weak short-term momentum.
- ⚠️ RSI at 34 indicates oversold conditions, which may cause volatility.
- ⚠️ Trading below DMA levels suggests technical weakness.
- ⚠️ Dividend yield of 0.94% is modest compared to peers.
Company Negative News
- ❌ Declining trading volume (5.8L vs 7.9L average) shows reduced market participation.
- ❌ Short-term bearish signals from MACD and DMA levels may limit upside.
Company Positive News
- 🌟 Strong quarterly profit growth boosts investor confidence.
- 🌟 Zero debt ensures financial stability.
- 🌟 Industry-leading ROCE and ROE highlight operational efficiency.
Industry
- 🏭 Aerospace & defense industry trades at PE of 57.9, higher than HAL’s PE of 34.1, suggesting relative undervaluation.
- 🏭 Sector growth driven by defense modernization and government contracts supports long-term prospects.
Conclusion
📌 HAL is fundamentally strong but technically weak in the short term. Entry near ₹4,200–₹4,250 is optimal, with exit around ₹4,500–₹4,550. Traders should be cautious of bearish momentum, but long-term investors may benefit from strong profitability, zero debt, and favorable industry outlook.
Would you like me to also prepare a comparative HTML analysis of HAL against another defense sector stock like Bharat Electronics (BEL) to highlight relative swing trade opportunities?
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