Hindustan Aeronautics Limited’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹3,13,922.99 crore, a PE ratio of 38.27, and a return on equity (ROE) of 28.9%. These figures reflect the company’s strong financial health and robust market position.
Content:
- Hindustan Aeronautics Ltd Overview
- Hindustan Aeronautics Financial Results
- Hindustan Aeronautics Financial Analysis
- Hindustan Aeronautics Company Metrics
- Hindustan Aeronautics Stock Performance
- Hindustan Aeronautics Peer Comparison
- Hindustan Aeronautics Shareholding Pattern
- Hindustan Aeronautics History
- How To Invest In Hindustan Aeronautics Ltd Share?
- Hindustan Aeronautics Limited Fundamental Analysis – FAQs
Hindustan Aeronautics Ltd Overview
Hindustan Aeronautics Limited (HAL) is a premier Indian aerospace and defense company specializing in the production of aircraft, helicopters, and related systems. Known for its significant contributions to India’s defense sector, HAL has a comprehensive range of indigenous and licensed products.
The company has a market capitalization of ₹3,13,922.99 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹5,675, significantly above its 52-week low of ₹1,768, indicating strong investor confidence. The all-time high of the stock is ₹5,675, while the all-time low is ₹224.
Hindustan Aeronautics Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with total sales increasing from ₹24,620 crore to ₹30,381 crore and EBITDA rising from ₹6,570 crore to ₹11,638 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Sales increased from ₹24,620 crore in FY 22 to ₹26,927 crore in FY 23, and further to ₹30,381 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: The company’s equity and liabilities structure showcases financial stability and strategic management. It effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Operating Profit Margin (OPM) increased from 23% in FY 22 to 27% in FY 23, and further to 32% in FY 24, reflecting improved operational efficiency.
- Earnings per Share (EPS): EPS increased from ₹151.92 in FY 22 to ₹174.28 in FY 23, and further to ₹113.95 in FY 24, indicating strong profit growth per share.
- Return on Net Worth (RoNW): RoNW remained stable, improving from 26.40% in FY 22 to 24.72% in FY 23, and further to 26.14% in FY 24, indicating consistent returns on shareholders’ equity.
- Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹6,570 crore in FY 22 to ₹8,947 crore in FY 23, and further to ₹11,638 crore in FY 24, showcasing robust financial health and management.
Hindustan Aeronautics Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 30,381 | 26,927 | 24,620 |
| Expenses | 20,640 | 19,651 | 19,035 |
| Operating Profit | 9,741 | 7,277 | 5,585 |
| OPM % | 32 | 27 | 23 |
| Other Income | 1,897 | 1,670 | 984.93 |
| EBITDA | 11,638 | 8,947 | 6,570 |
| Interest | 32.11 | 57.97 | 58.2 |
| Depreciation | 1,407 | 2,382 | 1,287 |
| Profit Before Tax | 10,198 | 6,507 | 5,225 |
| Tax % | 25.53 | 10.48 | 2.77 |
| Net Profit | 7,621 | 5,828 | 5,080 |
All values in ₹ Crores.
Hindustan Aeronautics Company Metrics
Hindustan Aeronautics Limited has a market cap of ₹3,13,922.99 crore, a book value of ₹472 per share, and a face value of ₹1.00. With a debt of ₹56,356 crore, EBITDA of ₹11,638 crore, dividend yield of 0.55%, asset turnover of 0.95, and EPS of ₹113.95, the company shows strong profitability.
Market Capitalization: Represents the total market value of Hindustan Aeronautics Limited’s outstanding shares, amounting to ₹3,13,922.99 crore.
EBITDA: Hindustan Aeronautics Limited’s EBITDA increased from ₹6,570 crore in FY 22 to ₹8,947 crore in FY 23, and further to ₹11,638 crore in FY 24, indicating strong operational performance and profitability over these years.
EPS: Hindustan Aeronautics Limited has an EPS of ₹113.95, reflecting the company’s profitability per share for its shareholders.
Face Value: The face value of Hindustan Aeronautics Limited’s shares is ₹1.00, representing the nominal value of each share as stated on the share certificate.
Asset Turnover: Hindustan Aeronautics Limited has an asset turnover ratio of 0.95, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: Hindustan Aeronautics Limited has a debt of ₹56,356 crore, reflecting its financial leverage and obligations.
Dividend Yield: Hindustan Aeronautics Limited has a dividend yield of 0.55%, reflecting the annual dividend income relative to its current share price.
Book Value: Hindustan Aeronautics Limited has a book value of ₹472 per share, representing the net asset value of the company divided by the number of outstanding shares.
Hindustan Aeronautics Stock Performance
Hindustan Aeronautics Ltd delivered impressive returns on investment with 142% over 1 year, 105% over 3 years, and 70.2% over 5 years, highlighting strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 142 |
| 3 Years | 105 |
| 5 Years | 70.2 |
Example: If an investor had invested ₹1,000 in Hindustan Aeronautics Ltd stock:
1 year ago, their investment would be worth ₹2,420.
3 years ago, their investment would have grown to ₹2,050.
5 years ago, their investment would have increased to approximately ₹1,702.
This highlights strong long-term performance and consistent profitability for investors
Hindustan Aeronautics Peer Comparison
Hindustan Aeronautics Ltd has a CMP of ₹4701.35, a market cap of ₹3,14,511.02 crore, and a P/E of 38.27. Peers like Bharat Dynamics, BEML Ltd, MTAR Technologies, Paras Defence, Ideaforge Tech, and NIBE show varied metrics with different market caps, P/E ratios, and returns.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Hind.Aeronautics | 4701.35 | 314511.02 | 38.27 | 28.89 | 113.57 | 142.41 | 38.88 | 0.74 |
| Bharat Dynamics | 1335.65 | 48974.5 | 84.71 | 17.89 | 15.77 | 137.75 | 24.23 | 0.33 |
| BEML Ltd | 3836.85 | 15967.2 | 55.77 | 11.07 | 68.83 | 98.45 | 15.18 | 0.13 |
| MTAR Technologie | 1783.25 | 5485.66 | 133.8 | 8.67 | 13.33 | -19.57 | 11.7 | 0 |
| Paras Defence | 1173.4 | 4588.88 | 119.72 | 7 | 10.49 | 84.34 | 9.8 | 0 |
| Ideaforge Tech | 680 | 2914.83 | 107.2 | 8.84 | 6.35 | -29.33 | 11.49 | 0 |
| NIBE | 1758.65 | 2309.5 | 104.69 | 18.87 | 16.8 | 283.15 | 20.16 | 0.01 |
Hindustan Aeronautics Shareholding Pattern
As of FY 2024, Hindustan Aeronautics Ltd shareholding pattern shows promoters holding 71.64%, FIIs at 12.42%, DIIs at 9.58%, and retail and others at 6.36%. Compared to FY 2023, there is a notable increase in FII holdings and a decrease in DII holdings.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 71.64 | 71.65 | 75.15 |
| FII | 12.42 | 9.07 | 4.37 |
| DII | 9.58 | 13.93 | 17 |
| Retail & others | 6.36 | 5.34 | 3.48 |
All values in %
Hindustan Aeronautics History
Hindustan Aeronautics Limited (HAL), established in 1940, is an Indian state-owned aerospace and defense company. It was founded as Hindustan Aircraft Limited in Bangalore to produce aircraft for the British during World War II. HAL has since played a crucial role in India’s aviation history.
In 1964, the company was nationalized and renamed Hindustan Aeronautics Limited. Over the decades, HAL has developed various indigenous aircraft, including the HF-24 Marut, India’s first jet fighter. The company also collaborated with foreign firms to manufacture and assemble aircraft under license.
HAL significantly contributed to India’s defense sector by manufacturing advanced military aircraft, helicopters, and related systems. Notable projects include the Dhruv Advanced Light Helicopter, the Tejas Light Combat Aircraft, and the Sukhoi Su-30MKI fighter jet, produced under license from Russia.
The company expanded its capabilities in the 21st century by focusing on research and development, modernization, and upgrading existing aircraft. HAL’s efforts have bolstered India’s self-reliance in defense production and enhanced the country’s aerospace industry.
Today, Hindustan Aeronautics Limited is a leading player in India’s aerospace and defense sector, with a diverse portfolio of products and services. Its contributions have been instrumental in advancing India’s technological and strategic capabilities in the aviation industry.
How To Invest In Hindustan Aeronautics Ltd Share?
Investing in Hindustan Aeronautics Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Hindustan Aeronautics Ltd shares and place your buy order.
Hindustan Aeronautics Limited Fundamental Analysis – FAQs
Hindustan Aeronautics Ltd’s fundamental analysis shows a market capitalization of ₹3,13,922.99 crore, a PE ratio of 38.27, and a return on equity (ROE) of 28.9%. The company demonstrates strong financial performance and solid market position.
Hindustan Aeronautics Ltd has a market capitalization of ₹3,13,922.99 crore, reflecting the total market value of its outstanding shares.
Hindustan Aeronautics Limited is a premier aerospace and defense company in India, specializing in the design, manufacture, and maintenance of aircraft, helicopters, and related systems.
Hindustan Aeronautics Limited is primarily owned by the Government of India, holding a majority stake as the promoter.
The main shareholders of Hindustan Aeronautics include the Government of India (promoters), FIIs, DIIs, and retail investors, with the government holding the majority stake.
Hindustan Aeronautics operates in the aerospace and defense industry, focusing on aircraft manufacturing, maintenance, and related services.
To invest in Hindustan Aeronautics Ltd shares, open a demat and trading account with a brokerage, search for its ticker symbol on the stock exchange, and place a buy order.
Determining if Hindustan Aeronautics Ltd is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. Given its PE ratio of 38.27, Hindustan Aeronautics Ltd appears overvalued compared to industry peers, indicating a higher price relative to its earnings.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
