HAL Stocks Zoomed 490%: Should You Book Profit?

The NSE benchmark Nifty50 index opened Tuesday’s session on a positive note, however, thereafter, it’s shaping out to be a choppy session as the index is bouncing between positive and negative terrain. It clearly indicates that market participants are nervous, ahead of several key economic reports from US including US Retail Sales, Existing Homes Sales and shift through an onslaught of speeches from Federal Reserve officials in an attempt to see what the central bank’s future plans for interest rates might be.    

All-time High:   

Amidst the nervousness prevailing in the market, there is one stock that seems to be completely unfazed by it all. In fact, it has recently soared to new heights, smashing through the ceiling and achieving an astounding all-time high of Rs 3123.10 on the National Stock Exchange (NSE) during the early trading sessions. Can you guess which stock we are talking about? It’s none other than Hindustan Aeronautics Ltd (HAL)!  

Technical view:   

As the stock is trading at a fresh all-time high, it is above all the short and long-term moving averages. Interestingly, all the key moving averages are trending up and at the same time, there is a desired sequence. It is also meeting the Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in clear uptrend.   

The trend strength indicator, Average Directional Index (ADX) is at 31.13, which shows the strength in trend. And this ADX is in up trending mode. The +DI is above the level of 35 which is much above the -DI. This structure is indicating the bullish strength in the stock.   

Q4FY Earnings:   

The aerospace and defence major, announced its earnings recently, operating revenue grew by 8% YoY to Rs 12,495 crore. EBITDA jumped a whopping 30% YoY to Rs 3,241 crore. Operating margins firmed to 25.9% in Q4FY23 as against 21.6% in Q4FY223. However, net profit of the company dipped to Rs 2,841 crore, down by 8% YoY. The company’s order book now stands at a whooping Rs 81,784 crore. The stock has delivered multibagger returns of 490% in last three years.