Hindustan Aeronautics share price hit a fresh 52-week high of Rs 1,693.20 apiece on BSE on Monday, after the company emerged as the lowest bidder to make five Polar Space Launch Vehicles (PSLVs) for the Indian Space Research Organisation (ISRO). Analysts say that with India looking to be self-reliant especially in terms of defence equipment, defence stocks such as Hindustan Aeronautics have benefitted immensely and been rallying for the past few days. “Technically, HAL looks overbought and investors are advised to book partial profits at current levels and wait for a dip near Rs 14,90-1,560 to start accumulating,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told .com.
Hindustan Aeronautics stock price rose 4.5 per cent to surpass the previous 52-week high of Rs 1,632.50 apiece touched last week on 8 April 2022. The company is the lead partner, with L&T sharing the work. “Other vendors too will be involved with the consortium in the manufacturing of the launch vehicles. However, the contract is yet to be formalised or awarded,” HAL said in a BSE filing.
Hindustan Aeronautics stock has jumped 21 per cent in one month, and 36 per cent so far in the year. The stock has risen 23 per cent in the last six months, and 75 per cent in the past one year. “Hindustan Aeronautics has won the bid to make PSLVs for ISRO and we can expect this as a big gain for the company and with this it will also strengthen its position in the Indian defence sector manufacture segment,” Vijay Dhanotiya, Lead Technical Research, CapitalVia Global Research, told .com. Dhanotiya added that this will increase the company’s revenue and the net profit. “Hence, we will expect further gains in the stock price of the company. We believe that investors should remain invested in the stock with a target of Rs 1,950,” he added.
In the traded volume terms, a total of 1.12 lakh shares exchanged hands on BSE, while 19.11 lakh shares traded on NSE, so far in the day. ISRO’s commercial arm, NSIL had floated the RFP for the work in December 2020, the company added.
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