Hindustan Aeronautics shares jump 5%, hit 52-week high on defence orders
«We wish to inform that, as per the Press Information Bureau, Defence Acquisition Council (DAC) accorded acceptance of necessity (AON) for procurement of Light Combat Helicopter (LCH) for Indian Air Force & Indian Army and Light Combat Aircraft (LCA) Mk 1A for Indian Air Force from HAL under buy (lndian-IDDM) category. The AONs have also been accorded for upgradation of Su-30 MKI Aircraft indigenously from HAL,» the company said in an exchange filing.
While procurement of these equipment pieces will provide enormous strength to the IAF, acquisition from domestic defence industries will take the indigenous capability to a new height.
It will also reduce dependability on foreign Original Equipment Manufacturers (OEMs) substantially.
At 10.42 am, the scrip was trading 3.7% higher at Rs 2,471 on BSE. Meanwhile, on a year-to-date basis, the stock has rallied nearly 95%, and 500% in the past three years.
According to data available on Trendlyne, the average target price of HAL is Rs 2,197, implying a downside of 11% from the current market price.
The consensus recommendation from 11 analysts for the stock is a 'Buy'.
Technically, the stock is in the overbought zone with the RSI at 83.2. While the Day MACD is at 68.2, which is above its center and signal line, this is a bullish indicator.
Hindustan Aeronautics stock stands higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day moving averages.
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