Hindustan Aeronautics shares jump 4% to hit one-year high; here's what analysts say

Hindustan Aeronautics Ltd (HAL) shares surged 3.59 per cent to scale their one-year high level of Rs 4,064.10 in Tuesday's trade. Around 1.14 lakh shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 81,000 shares. Turnover on the counter came at Rs 46.08 crore, commanding a market capitalisation (m-cap) of Rs 2,71,151.48.

The defence PSU will come up with its fourth-quarter (Q4 FY24) results on May 16 (Thursday).

Analysts largely remained positive on the counter. "HAL is a stock which one should buy and hold. It is a structural story and is going to be one of the key beneficiaries of import substitution in the defence space. The stock has potential to give substantial gains over the next 2-5 years," Gaurav Dua, SVP, Head of Capital Market Strategy at Sharekhan by BNP Paribas, told Business Today TV.

"The stock has been trading in an uncharted territory with a positive bias. One can consider buying it at current levels, keeping stop loss at Rs 3,760. Those already holding should continue with their positions. Expected targets on the counter will be Rs 4,143-4,417 levels," said Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 67.60. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 44.06 against a price-to-book (P/B) value of 10.79. Earnings per share (EPS) stood at 91.87 with a return on equity of 24.49.

As of March 2024, the government owned a 71.64 per cent stake in HAL.