Trade idea on HAL with good R:R

2022년 1월 11일

Hindustan Aeronautics


Technical:


CMP: 1296
Buy after it crosses 1313 on the hourly chart and is confirmed
Targets: 1425, 1568
SL: 1230

Rational: Both wedge + FIB breakout, already seeing increase volumes

Fundamental Top 5 points:

⁃ Services entire army fleet and >70% IAF and Navy
⁃ Decreasing inventory days reducing working capital needs
⁃ Strong order book
⁃ Consistent ROE > 20%
⁃ Reducing debt and Kd at 5.32%

Quick Valuation:
⁃ Trading at a PE of 13.33x - closest peer: Bharat dynamics trades at 20+ and other New listed IPO companies: Paras defence and data patterns trade >60PE (they are however only into design)