Indian homemade Tejas Aircrafts made by Hindustan Aeronautics Ltd (HAL) are in high demand. Will it make HAL a multibagger stock in near future? We will make a short analysis of different media reports and HAL share price in this article.
HAL Tejas Aircraft in media reports
Malaysia is interested to purchase 18 Light Combat Aircraft (LCA) Tejas from Indian Aerospace & Defence Equipment manufacturer state owned company Hindustan Aeronautics Limited (HAL); this is informed by the Govt. to Lok Sabha.
Argentina, Australia, Egypt, United States, Indonesia, and the Philippines are also interested in the light weight aircraft Tejas.
Indian government has also given a contract of $6 billion to Hindustan Aeronautics Ltd for 83 home made Tejas jets.
HAL in to Drone manufacturing
As per media reports, HAL is currently working on projects to manufacture AI-driven multi-role, long-endurance drone for strategic missions in high-altitude areas like LAC and Himalayan border areas.
Another media reports says that HAL is looking at to collaborate with manufacturer of Heron TP drones Israel and it is also working on two separate drone projects with the Defence Research and Development Organization (DRDO).
As we know the Central Government is focusing on Atmanirbhar Bharat Abhiyan specifically on manufacturing of defence equipment in India and to focus on home made products rather than depending on imports from other countries. HAL could be a major beneficiary of this move of Govt. Nowadays Drones manufacturers are also in focus as the Govt. is intended to deploy drones in various projects like from agriculture to defence sector. Hence HAL’s steps to enter into drone manufacturing would be a major turnaround for its products portfolio.
Table of Contents
- HAL Tejas Aircraft in media reports
- HAL in to Drone manufacturing
- HAL Share fundamentals
- HAL stock technical chart
- HAL Shareholding pattern
- HAL Quarterly results
HAL Share fundamentals
By analyzing the above media reports, we can say that HAL share could be a good performer in the coming days. And as you know, stock market always move two step ahead, we can see these reports are being factor-in in the share price of HAL and it is near its all time high.
The share price of HAL, it is at Rs.2007 near its all time high of 2074. The stock is running at a PE of 13 which is cheaper than its sector PE of 48. If we look at candlestick chart of HAL, the stock is in strong uptrend despite the major corrections in the market.
HAL stock technical chart
Stock price is above its 20 Day, 50 Day and 200 Day moving average, RSI is at 66. Although the price is showing retracement from its highs in last few days, but we can see currently the stock is getting support from its 20 Day & 50 Day moving average and bounce back.
[The chart we have presented here is on Zerodha web platform. We personally use Zerodha & Upstox for investing and trading in Indian stock market.]
In last one year the HAL share has given a return of 85% in a bearish market trend and in last four years since its listing in stock market it has given 77% returns to its shareholders.
HAL Shareholding pattern
Hindustan Aeronautics Ltd (HAL) is a state owned large cap company with a market capitalization of nearly 66,000 Cr. Promoters that is the Central Govt. has 75.15% shareholding in it and FIIs & DIIs have respectively 5.56% & 15.71% of stake in it. There are only 3.58% shares in the hands of public & retail investors.
Generally public don’t prefer state owned stocks due to their poor performance and various types of decisions taken by Govt. which affect the stock price. But we may consider HAL, due to its future projects and growth prospects that could give a healthy return to its shareholders in future.
HAL Quarterly results
In the past quarterly results of HAL sales and profit figures are not consistent and if we look it has reported lower numbers in each June quarter of last three years. HAL may announce its Q1 FY23 Quarter ending June 2022 results on 12th August 2022. If it will post good results then it can show massive jump in quarterly results due to lower base in June 2021 quarter. But the previous March 2022 quarter results of HAL was its best ever reports where Revenue was Rs.11,561 Crore and Net Profit of 3,100 Crore and the market may expect results better than the previous quarter. We have to watch its coming Q1 results and the market reaction.
However, stock market move is always uncertain and investing in stocks is highly subject to market risk. We have to check a lot of factors before selecting a good stock to invest. And also we have to decide whether to invest for long term or to take positional trade. That depends upon our strategy of trading & investing in stock market. So we should invest on the basis of our own analysis or consult any financial advisor before taking any investment decision.
