Hindustan Aeronautics Limited (HAL) AI Stock Analysis

• Market Cap: ₹3.26T
• Dividend Yield: 0.85%
• Average Volume (3M): 71.80K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.79
• Revenue Growth: 2.07%
• EPS Growth: 0.81%
• Country: IN
• Employees: 22,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 20.69
• Shares Outstanding: 668,775,000
• 10 Day Avg. Volume: 61,424
• 30 Day Avg. Volume: 71,803
• PEG Ratio: 3.46
• Price to Book (P/B): 8.07
• Price to Sales (P/S): 9.12
• P/FCF Ratio: 22.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹5,758.20
• Price Target Upside: 21.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: ₹4,966.00 ▲(5.09% Upside)

Hindustan Aeronautics Limited's strong financial performance is the most significant factor driving its overall score, reflecting robust revenue growth, profitability, and financial stability. However, the technical analysis indicates potential short-term weakness, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Hindustan Aeronautics Limited Business Overview & Revenue Model

Company Description

Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India and internationally. The company provides power plants; materials, including castings, general and precision forgings, powder metallurgy products, rubber products, rolled rings, and composites; and aerospace products, which include structures, tanks, and cryogenic engines. It also offers avionics, such as inertial navigation systems, auto stabilizers, head-up displays, laser range systems, flight data recorders, communication equipment, radio navigation equipment, airborne secondary radars, missile inertial navigation systems, radar computers, and ground radars; and system and accessories comprising hydraulic, wheels and brake, flight control, oxygen, and fuel management systems, as well as ejector release units, panel instruments, gyroscopic/barometric instruments, and hydraulic pumps. In addition, the company provides various services in the areas of aircraft and helicopters MRO, and power plants, as well as systems, accessories, and avionics. It serves space, defense, and civil industries. The company has a collaboration agreement with Rolls-Royce Holdings plc to expand the supply chain for Adour engine parts in India to serve military customers. Hindustan Aeronautics Limited was incorporated in 1963 and is based in Bengaluru, India.

How the Company Makes Money

HAL generates revenue primarily through the sale of aircraft and related products to the Indian defense sector, including the Indian Air Force, Indian Army, and Indian Navy. The company also earns from exports of its aerospace products to international customers. Key revenue streams include manufacturing contracts for military aircraft and helicopters, maintenance, repair, and overhaul (MRO) services, and the sale of spare parts and accessories. Significant partnerships with global aerospace firms and the Indian government's defense procurement initiatives also contribute to HAL's earnings.

Hindustan Aeronautics Limited Financial Statement Overview

Summary

Hindustan Aeronautics Limited presents a strong financial performance across all key areas. The income statement reflects strong revenue growth and profitability, supported by effective cost management and operational efficiency. The balance sheet highlights financial stability with low leverage and strong equity. Cash flows are robust, ensuring liquidity and financial flexibility. The company is well-positioned for future growth with a solid financial foundation and consistent performance.

Income Statement

Hindustan Aeronautics Limited has demonstrated impressive revenue growth, with a significant increase in Total Revenue from the previous year. The Gross Profit Margin and Net Profit Margin are strong, indicating effective cost management and profitability. Additionally, the EBIT and EBITDA margins are robust, reflecting efficient operations and strong earnings before interest and taxes. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The company's balance sheet is healthy, characterized by a strong equity base and low debt levels, as evidenced by a very low Debt-to-Equity Ratio. The Return on Equity (ROE) is commendable, indicating efficient use of equity to generate profits. The Equity Ratio is solid, underscoring a stable financial structure with a significant portion of assets financed by equity. Overall, the balance sheet demonstrates stability and low financial risk.

Cash Flow

Hindustan Aeronautics Limited exhibits strong cash flow metrics with significant growth in Free Cash Flow, indicating effective cash generation and management. The Operating Cash Flow to Net Income Ratio is favorable, suggesting that net income is being efficiently converted into cash flow. The Free Cash Flow to Net Income Ratio also supports the company's strong liquidity position. Overall, the cash flow statement reflects robust cash flow health and sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	314.52B	309.81B	303.81B	269.27B	246.20B	228.82B
Gross Profit	182.89B	179.27B	185.38B	160.13B	140.40B	111.76B
EBITDA	81.32B	79.94B	82.88B	52.87B	44.06B	41.70B
Net Income	83.11B	83.64B	76.21B	58.28B	50.80B	32.46B
Balance Sheet
Total Assets	0.00	1.06T	780.95B	672.04B	583.92B	519.46B
Cash, Cash Equivalents and Short-Term Investments	381.81B	381.82B	264.31B	203.03B	143.47B	71.75B
Total Debt	0.00	11.60M	11.00M	26.50M	24.90M	114.60M
Total Liabilities	-349.85B	712.82B	489.53B	436.28B	390.75B	365.30B
Stockholders Equity	349.85B	349.82B	291.38B	235.72B	193.13B	154.12B
Cash Flow
Free Cash Flow	0.00	127.13B	73.06B	70.48B	85.32B	139.45B
Operating Cash Flow	0.00	136.43B	82.23B	88.30B	100.33B	152.63B
Investing Cash Flow	0.00	-107.71B	-64.10B	-57.28B	-127.60B	-12.71B
Financing Cash Flow	0.00	-25.79B	-19.99B	-17.31B	-13.49B	-71.25B

Hindustan Aeronautics Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4725.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAL, the sentiment is Neutral. The current price of 4725.35 is below the 20-day moving average (MA) of 4808.32, above the 50-day MA of 4676.89, and above the 200-day MA of 4392.72, indicating a neutral trend. The MACD of 11.33 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 7.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HAL.

Hindustan Aeronautics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAL	―	₹3.26T	39.27	―	0.85%	2.07%	0.81%
BEL	―	₹3.02T	54.87	―	0.59%	14.23%	29.82%
MAZDOCK	―	₹1.14T	52.38	―	0.62%	12.22%	-9.22%
GRSE	―	₹302.10B	53.10	―	0.54%	39.76%	52.37%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDL	―	₹564.60B	100.68	―	0.30%	50.34%	-3.00%
COCHINSHIP	―	₹471.27B	56.04	―	0.66%	24.03%	-2.11%