HAL board to consider stock split on June 27

The Board of Hindustan Aeronautics Ltd (HAL) will meet on June 27 to consider and approve a proposal to split its equity shares.

"A meeting of the Board of Directors of the company will be held on June 27, to consider a proposal of sub-division of equity shares of the company," the company said in a filing.

A stock split is usually done to increase the liquidity of the stock in the market. On the record date, investors who are holding the stock until the record date will receive the new shares in Demat accounts and the stock price will be adjusted according to the split ratio.


Shares of HAL hit a 52-week high recently after gaining nearly 14% in the past five days. So far this year, the stock is up about 39%. On Thursday, the shares closed 1.37% higher at Rs 3,536.

Technically, the stock witnessed a breakout from ascending channel pattern on June 5 and registered a new lifetime-high of Rs 3,326.

Analysts say above-average volume and a rise in future open interest over the past few days indicate that major participants were in favor of the bulls.

"The key moving averages are sloping upwards, which is signaling that an overall trend is bullish. This could take the stock towards its channel breakout point of Rs 3,800 in the short to medium-term (1-3 months). In case of any decline, the stock may find support at around Rs 3,050," said Jatin Gohil,
Technical and Derivative Research Analyst at Reliance Securities.

HAL remains a favourite for foreign institutional investors as they have consistently increased their holdings for the past four quarters. FIIs cumulatively held a 9.07% stake in the company at the end of the March quarter.

Mutual Funds too, have steadily increased their holding in the company. As of March end, they held an 8.84% stake in HAL, compared to 6.05% in the December quarter of 2021.

Most analysts remain bullish on HAL given its strong order book and revenue growth prospects. According to ICICI Securities, among all the defence stocks under its coverage, HAL has the most formidable order funnel with an FY23 orderbook at Rs 81,700 crore and potential order inflows of Rs 66,000 crore in FY24.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)