Navratna Stock HAL To Turn 1:2 Ex-Split This Week: Should You Bet?

This week's attention will be on Navratna CPSE Hindustan Aeronautics Ltd (HAL), as the stock is set to go ex-split for a 1:2 ratio. Despite the company's 50% YTD gain and lengthy history of consistently paying dividends, Choice Broking, a brokerage company, claims that there is still more upside potential for the stock.

HAL Stock Split

This week the company will trade ex-split in a sub-division ratio of 1:2. The corporation has specified September 29 as the record date for determining eligible shareholders for the sub-division or split of existing 1 equity share with a face value of Rs. 10 each fully paid up into 2 equity shares with a face value of Rs. 5 each fully paid-up.

HAL Financials

With a jump of 8% from the previous year's Rs 24,361.66 crore to Rs 26,360.56 crore in FY23, the firm achieved its highest-ever turnover. PAT went from Rs 5,086.50 crore in FY22 to Rs 5,811.17 crore in FY23, a 14% rise. As of March 31, 2023, the company's order book position was strong at Rs 81,784 crore. In comparison to Q1FY23's net profit of 620.13 crore and Q4FY23's net profit of 2,831.19 crore, HAL reported a consolidated net profit of Rs 814.09 crore in Q1FY24. The net revenue from operations in Q1FY24 was Rs 3,915.35 crore, compared to Rs 3,622.46 crore in Q1FY23 and Rs 12,494.67 crore in the quarter ended in March 2023.

HAL Share Price Target

Ameya Ranadive CMT CFTe, Equity Research Analyst, Choice Broking, said HAL, currently trading at Rs 3900, recently reached a lifetime high of Rs 4170 before experiencing a price correction and finding support at the Rs 3800 level. It has also formed a morning star candlestick pattern on the daily chart, indicating a bullish reversal. Furthermore, HAL is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day and 50-day EMAs, highlighting its bullish momentum and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) is currently at 47.91 and is showing an upward trajectory, indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has displayed a positive crossover from the oversold region. This combination of technical factors suggests that HAL may have the potential to reach a target price of Rs 4060 in the near term.
To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 3815 to protect your investment in case the market takes an unexpected turn. Overall, considering the technical analysis and current market conditions, HAL appears to be a promising buying opportunity for those targeting a Rs 4060 price level, provided prudent risk management measures are in place.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.