HAL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.3
| Stock Code | HAL | Market Cap | 2,81,921 Cr. | Current Price | 4,217 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 33.4 | Book Value | 553 ₹ | Dividend Yield | 0.95 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,456 ₹ | DMA 200 | 4,501 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 1.04 % | PAT Qtr | 1,663 Cr. | PAT Prev Qtr | 1,377 Cr. |
| RSI | 41.1 | MACD | -14.0 | Volume | 57,53,021 | Avg Vol 1Wk | 29,66,706 |
| Low price | 3,046 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.88 | Debt to equity | 0.00 |
| 52w Index | 55.2 % | Qtr Profit Var | 11.9 % | EPS | 126 ₹ | Industry PE | 63.1 |
📊 Hindustan Aeronautics Limited (HAL) shows strong fundamentals with high ROCE and ROE, zero debt, and consistent profit growth. The RSI at 41.1 suggests the stock is approaching oversold territory, which may provide a swing trade opportunity. However, MACD (-14.0) indicates weak short-term momentum. The optimal entry price would be around ₹4,150–₹4,200, near the support zone. If already holding, consider exiting around ₹4,500–₹4,550, close to the 200 DMA resistance level.
✅ Positive
- High ROCE (33.9%) and ROE (26.0%) reflect strong efficiency and profitability.
- Debt-to-equity ratio of 0.00 shows excellent financial health.
- Quarterly PAT growth from ₹1,377 Cr. to ₹1,663 Cr. (+11.9%) indicates improving earnings.
- EPS of ₹126 supports strong earnings visibility.
- DII holdings increased (+1.04%), showing strong domestic institutional support.
- Trading volume significantly above weekly average, indicating strong market activity.
⚠️ Limitation
- P/E (33.4) is lower than industry PE (63.1), but still relatively high compared to broader market averages.
- Dividend yield of 0.95% is modest.
- MACD (-14.0) signals weak short-term momentum.
- Stock trading below DMA 50 and DMA 200 indicates technical weakness.
📉 Company Negative News
- Decline in FII holdings (-1.14%) shows reduced foreign investor confidence.
- Stock trading below moving averages highlights short-term weakness.
📈 Company Positive News
- Strong quarterly profit growth supports earnings confidence.
- EPS of ₹126 reflects robust profitability.
- Domestic institutional investors increasing stake shows confidence in long-term growth.
🏭 Industry
- Aerospace and defense industry benefits from rising government defense spending and modernization programs.
- Industry PE at 63.1 highlights HAL’s relatively attractive valuation (P/E 33.4).
- Sector outlook remains positive with strong demand for defense and aviation projects.
🔎 Conclusion
HAL is a fundamentally strong company with zero debt, high returns, and consistent profit growth. While short-term technical indicators show weakness, the overall setup favors swing trading opportunities. Entry near ₹4,150–₹4,200 is favorable, with an exit target around ₹4,500–₹4,550. Strong fundamentals and industry tailwinds make it a good candidate for swing trades, though traders should remain cautious due to current momentum weakness.