Can HAL Stock Reclaim Peak after 156 Prachanda Order?
LCH Prachanda (Image credit X.com)
HAL Bags ₹62,700 Cr Order for 156 LCH ‘Prachanda’
By S Jha
New Delhi, March 28: Ministry of Defence has given contracts worth ₹62,700 crore to Hindustan Aeronautics Limited (HAL). The Bengaluru-based defence giant will supply 156 LCH, Prachand to the Armed Forces.
The orders came a day after the HAL revised Tejas Mk1 contracts to ₹6542 crores. There has been delays in executing the contracts.
But HAL appears to be getting on track to meet ambitious expectations on indigenisation. US-based GE is meeting commitments to supply the engines to the HAL.
“The Cabinet Committee on Security chaired by Prime Minister Narendra Modi today approved the proposal to buy 156 Light Combat Helicopter ‘Prachand’ worth over ₹62,500 crore from Hindustan Aeronautics Limited (HAL),” said Union Minister for Defence Rajnath Singh in a post on X.
Singh said that “this decision marks a major boost to India’s combat capabilities and self-reliance in defence. Capable of operating from high altitude terrain and carrying out precision strike at high altitude targets, Helicopter ‘Prachand’ is a powerful machine”.
“The Cabinet’s decision taken today will create more than 8500 jobs. This is indeed a proud moment for India’s Make in India journey,” added Singh. Out of 156 LCHs, 66 of them will be supplied to the Indian Air Force and 90 to the Indian Army.
Stock of HAL gained almost nine per cent in one week. Gains in the stock of HAL have been in line with rally in defence scrips in the stock market. Stock of HAL is trading at ₹4177 at Friday’s close. The 52-week high of the stock is ₹5674. The 52-week low of the HAL stock is ₹3046.
Revenue and profit grew by 13 and 30 per cent respectively for HAL in the last fiscal. The stock has healthy ROCE (Return on Capital Employed) and ROE (Return on Equity).
The stock of HAL is trading at a 32 PE multiple. Technically, the stock of HAL has a momentum score of almost 48 out of 100 per Angel Broking.
The stock of HAL is trading above both 50-day and 200-day EMA. This signals bullishness in the stock. The MACD score of the HAL stock is currently placed at 143. The RSI is over 70. Both again indicate bullish momentum in the stock per analysts.
Short-term resistance for the HAL stock is placed at ₹4187 per technical chart. On December 16 last year, the stock of HAL fell from the retracement peak of ₹4676. This level is expected to act as a barrier for the scrip in near future per analysts.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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