HAL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | HAL | Market Cap | 2,95,040 Cr. | Current Price | 4,412 ₹ | High / Low | 5,066 ₹ |
| Stock P/E | 32.5 | Book Value | 611 ₹ | Dividend Yield | 0.91 % | ROCE | 32.0 % |
| ROE | 24.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,296 ₹ | DMA 200 | 4,329 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.75 % | PAT Qtr | 4,184 Cr. | PAT Prev Qtr | 1,852 Cr. |
| RSI | 56.4 | MACD | -7.40 | Volume | 8,95,501 | Avg Vol 1Wk | 9,96,773 |
| Low price | 3,479 ₹ | High price | 5,066 ₹ | PEG Ratio | 2.03 | Debt to equity | 0.00 |
| 52w Index | 58.8 % | Qtr Profit Var | 5.71 % | EPS | 136 ₹ | Industry PE | 61.8 |
HAL shows strong fundamentals but mixed technical momentum. The RSI at 56.4 indicates neutral-to-positive strength, while MACD (-7.40) reflects short-term weakness. The stock is trading above both its 50 DMA (4,296 ₹) and 200 DMA (4,329 ₹), suggesting medium-term support. Strong ROCE (32.0%) and ROE (24.0%) highlight efficiency, while EPS of 136 ₹ supports valuation strength. However, the P/E of 32.5 is lower than the industry PE of 61.8, indicating relative undervaluation.
💡 Optimal Entry Price: Around 4,350–4,400 ₹, near support levels.
📈 Exit Strategy (if already holding): Consider booking profits near 4,800–4,900 ₹, or trail stop-loss if momentum strengthens toward 5,066 ₹ (recent high).
🌟 Positive
- Strong ROCE (32.0%) and ROE (24.0%) indicate efficient capital use.
- EPS of 136 ₹ highlights strong earnings power.
- Debt-to-equity ratio of 0.00 shows financial discipline.
- Quarterly PAT surged from 1,852 Cr. to 4,184 Cr.
- Industry PE (61.8) is much higher than HAL’s PE (32.5), suggesting undervaluation.
⚠️ Limitation
- MACD (-7.40) indicates short-term bearish trend.
- Dividend yield of 0.91% is modest.
- Quarterly profit variation of 5.71% shows limited growth momentum.
📰 Company Negative News
- FII holdings declined (-0.65%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.75%), reflecting domestic investor support.
- Quarterly PAT growth highlights earnings stability.
🏭 Industry
- Aerospace and defense industry benefits from government contracts and rising defense expenditure.
- Industry PE at 61.8 is much higher than HAL’s PE (32.5), suggesting HAL is undervalued compared to peers.
🔎 Conclusion
HAL is fundamentally strong with attractive valuation compared to industry peers. For swing trading, entry near 4,350–4,400 ₹ is favorable, with exit around 4,800–4,900 ₹. Traders should maintain strict stop-loss discipline as technical indicators remain weak despite strong fundamentals.
Would you like me to also compare HAL’s swing trade outlook with peers like BEL, BEML, or Cochin Shipyard to identify stronger opportunities?