HAL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📊 HAL shows strong fundamentals but is currently in a technical pullback. Entry near ₹4,580–₹4,620 is optimal. If already held, consider exiting near ₹5,100–₹5,160.

📈 Positive

• Strong fundamentals: ROCE 33.9%, ROE 26.0%, Debt-to-equity 0.00
• EPS ₹123 and healthy dividend yield of 0.85%
• Trading above DMA 200 (₹4,537) — long-term uptrend intact
• Low volatility with strong institutional interest (FII holding up 0.10%)

⚠️ Limitation

• MACD -14.8 and RSI 42.8 — bearish signals, momentum weakening
• Trading below DMA 50 (₹4,727) — short-term weakness
• Volume below weekly average — lack of buying pressure
• PEG ratio 2.13 — suggests overvaluation relative to growth
• Qtr Profit Var -4.07% — recent earnings contraction

🚫 Company Negative News

• Q2 profit dropped 65% YoY due to lower other income and higher expenses
• Stock corrected 10% from recent highs amid profit booking

✅ Company Positive News

• HAL signed MoUs with Airbus and Safran for aerospace collaboration
• Strong order book from defence contracts and indigenous aircraft programs
• Government support for defence PSUs remains robust

🏭 Industry

• Defence sector benefits from Make in India push and rising global tensions
• HAL trades at P/E 37.9 vs industry average of 66.4 — relatively undervalued

🧾 Conclusion

• HAL is a fundamentally strong but technically weak swing candidate
• Best entry: ₹4,580–₹4,620 near support and below DMA 50
• If already held, exit near ₹5,100–₹5,160 — resistance zone near 52-week high
• Watch for MACD crossover and RSI >50 for confirmation

I can also compare HAL with other defence sector stocks to find stronger swing setups.