Rs 94,000 Crore Order Book: Multibagger Defence Stock Bounces Back from Crucial Support; Expects Order Book to Touch Rs 1,20,000 Crore – Bottom Formed?
The stock has delivered multibagger gains of 130.5 per cent in the past year and has surged an impressive 567.5 per cent
The NSE benchmark Nifty50 index has bounced back from its October 7 swing low and has reclaimed the important psychological level of 25,000. Speaking of bounce backs, defence stocks have also rebounded from their crucial support levels on Thursday.
One defence stock that has caught the attention of market participants is Hindustan Aeronautics Ltd (HAL). HAL was incorporated in 1964 through the amalgamation of Hindustan Aircraft Limited and Aeronautics India Limited, and it is a 'Navratna' company. HAL is engaged in the design, development, manufacture, repair, and overhaul of aircraft, helicopters, engines, and related systems like avionics, instruments, and accessories, primarily serving India's defence programme. Additionally, it manufactures structural parts for various satellite launch vehicles of the Indian Space Research Organization (ISRO).
HAL's shares rose by 3 per cent on Thursday, with the stock having jumped nearly 9 per cent from the lows of October 7. With this strong upward movement, the stock has managed to reclaim its 20-day moving average (20-DMA) support level. The 14-period daily RSI has formed a bullish divergence, and the MACD line has crossed above the signal line, both of which are positive signs for the stock.
HAL has an order book worth Rs 94,000 crore, and the company expects the outstanding order book to be around Rs 1,20,000 crore by March 31, 2025. With these orders and other ROH orders as of March 31, 2025, the outstanding order book is expected to remain at approximately Rs 1,20,000 crore, even after fulfilling a portion of the orders as part of the revenues for FY24-25.
The stock has delivered multibagger gains of 130.5 per cent in the past year and has surged an impressive 567.5 per cent over the last three years, with its market capitalization crossing the Rs 3 lakh crore milestone.
Disclaimer: The article is for informational purposes only and not investment advice.