Stock in news: After getting Maharatna status, Hindustan Aeronautics Limited (HAL) share price is expected to remain under the radar of the Indian stock market investors. The Government of India granted 'Maharatna' status to the defence PSU company on Saturday, making HAL the 14th Maharatha company in India. The move is expected to bring greater autonomy, higher investment capability, and strategic flexibility to HAL, so the market is expected to react to this new development.
According to stock market experts, getting Maharatna status and becoming one of the Maharatna companies in India is a significant development for HAL. They said that the GoI move is expected to bring higher investment opportunities and strategic flexibility and predicted that HAL's share price may touch ₹5,000 apiece in the near term.
Speaking on the impact of Maharatna status on HAL shares, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "This is a big moment for the defence PSU company as Maharatna status would bring ease in doing business. Now, HAL can invest up to ₹5,000 crore or 15% of its net worth (whichever is applicable in the future) in a single project without government approval. Like any other Maharatna company, HAL will be free to undertake domestic and international mergers, acquisitions, and strategic investments."
"The defence PSU company was facing challenges on the delivery front, which is expected to get eased after the grant of Maharatna status," Anshul Jain added.
Expecting a sharp rally in HAL share price after the grant of Maharatna status, Sumeet Bagadia, Executive Director at Choice Broking, said, “HAL share price is looking bullish on the technical chart pattern. Those who have HAL shares in their portfolio are advised to hold the scrip for the short-term target of ₹4,700 and ₹5,000, maintaining a stop loss at ₹4,300 apiece.”
Sumeet Bagadia suggested that fresh investors buy HAL shares for the short-term target of ₹4,700 and ₹5,000 apiece, maintaining a stop loss at ₹4,300 per share.
As mentioned above, HAL will be the 14th Maharatna company in India. The first 13 Maharatna companies are as below:
1] National Thermal Power Corporation (NTPC) Ltd;
2] Oil and Natural Gas Corporation (ONGC) Ltd;
3] Steel Authority of India Limited (SAIL);
4] Bharat Heavy Electricals Limited (BHEL);
5] Indian Oil Corporation Limited (IOCL);
6] Hindustan Petroleum Corporation Limited (HPCL);
7] Coal India Limited (CIL);
8] GAIL India Limited;
9] Bharat Petroleum Corporation Limited (BPCL);
10] Power Grid Corporation of India Limited;
11] Power Finance Corporation (PFC);
12] Rural Electrification Corporation (REC) Limited; and
13] Oil India Ltd (OIL).
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
