Hindustan Aeronautics takes off after enhancing working capital limit

Hindustan Aeronautics jumped 6.49% to Rs 857.10 after the company announced renewal and enhancement of working capital limit to Rs 12,050 crore, from Rs 7,300 crore earlier.

Hindustan Aeronautics (HAL) announced that the competent authority has granted its approval for enhancement of working capital limit from Rs 7,300 crore to Rs 12,050 crore including issuance of commercial papers of maximum of Rs 5000 crore, as sanctioned by State Bank of India (SBI) and other consortium banks. The announcement was made during trading hours today, 21 January 2020.

In the past one year, the stock jumped 10.62% to its current market price of Rs 857.10. On the technical front, the HAL stock's RSI (relative strength index) stood at 71.494. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

On a consolidated basis, HAL's net profit surged 114.60% to Rs 616.70 crore on 32.2% increase in net sales to Rs 3,451.07 crore in Q2 September 2019 over Q2 September 2018.

Hindustan Aeronautics is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. It also manufactures the structural parts of various Satellite Launch Vehicles of the Indian Space Research Organization (ISRO).

The Government of India (GoI) holds majority stake of 89.97% as on 31 December 2019.

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