HAL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | HAL | Market Cap | 2,54,343 Cr. | Current Price | 3,802 ₹ | High / Low | 5,166 ₹ |
| Stock P/E | 28.7 | Book Value | 553 ₹ | Dividend Yield | 1.05 % | ROCE | 33.9 % |
| ROE | 26.0 % | Face Value | 5.00 ₹ | DMA 50 | 4,144 ₹ | DMA 200 | 4,379 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 1.04 % | PAT Qtr | 1,852 Cr. | PAT Prev Qtr | 1,663 Cr. |
| RSI | 35.1 | MACD | -79.1 | Volume | 10,60,889 | Avg Vol 1Wk | 13,25,984 |
| Low price | 3,704 ₹ | High price | 5,166 ₹ | PEG Ratio | 1.62 | Debt to equity | 0.00 |
| 52w Index | 6.73 % | Qtr Profit Var | 29.3 % | EPS | 132 ₹ | Industry PE | 52.9 |
📊 HAL shows strong fundamentals with short-term technical weakness. The RSI at 35.1 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-79.1) and price trading below both the 50 DMA (₹4,144) and 200 DMA (₹4,379) reflect bearish sentiment. Despite this, HAL’s strong ROCE (33.9%), ROE (26.0%), and debt-free balance sheet make it fundamentally attractive. Quarterly PAT growth (+29.3%) and EPS (₹132) further strengthen its case. Valuation is moderate with a P/E of 28.7 compared to industry P/E of 52.9, making it relatively undervalued.
💡 Optimal Entry Price: ₹3,750–₹3,820, near the recent low of ₹3,704.
📈 Exit Strategy (if already holding): Consider exiting around ₹4,140–₹4,200 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (33.9%) and ROE (26.0%) indicate efficient capital use.
- Debt-free balance sheet (Debt-to-equity ratio 0.00).
- Quarterly PAT growth from ₹1,663 Cr. to ₹1,852 Cr. (+29.3%).
- DII holdings increased (+1.04%), showing domestic institutional support.
⚠️ Limitation
- Dividend yield of 1.05% is modest.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
- MACD (-79.1) indicates strong bearish momentum.
📉 Company Negative News
- FII holdings declined (-1.14%), showing reduced foreign investor confidence.
- Weak technical indicators (MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Quarterly profit growth (+29.3%) reflects strong earnings momentum.
- DII holdings increased (+1.04%), showing domestic support.
- EPS of ₹132 supports valuation strength.
🏭 Industry
- Aerospace and defense sector remains resilient with strong government demand.
- Industry P/E at 52.9 makes HAL relatively undervalued (P/E 28.7).
🔎 Conclusion
HAL is fundamentally strong with robust earnings and undervaluation compared to industry peers. Despite short-term technical weakness, it is a good candidate for swing trading if entered near ₹3,750–₹3,820, with a target around ₹4,140–₹4,200. Traders should monitor RSI recovery and volume trends to confirm momentum before committing heavily.