Hindustan Aeronautics Limited (IN:HAL)
:HAL
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Hindustan Aeronautics Limited
(HAL)
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Rating:78Outperform
Price Target:
₹5,265.00
▲(19.19% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial performance (high profitability, very low leverage, and solid cash generation), supported by a constructive technical trend with positive momentum indicators. The biggest offset is valuation, with a high P/E and only a modest dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and interest-rate risk, enables HAL to fund development, ramp production, and absorb program timing shocks while preserving capital for strategic investments and sustainment.
Negative Factors
Recent Gross Profit Drop
A sudden gross profit contraction despite rising revenue suggests margin erosion from cost inflation, program mix shifts or pricing pressure. If structural, this can compress long-term margins, reduce cash flow conversion and weaken the durability of recent profitability gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and interest-rate risk, enables HAL to fund development, ramp production, and absorb program timing shocks while preserving capital for strategic investments and sustainment.
Read all positive factors
Hindustan Aeronautics Limited (HAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.89T
Dividend Yield0.9%
Average Volume (3M)71.80K
Price to Earnings (P/E)25.6
Beta (1Y)1.45
Revenue Growth6.80%
EPS Growth8.98%
CountryIN
Employees22,655
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)126.64
Shares Outstanding668,775,000
10 Day Avg. Volume61,424
30 Day Avg. Volume71,803
Financial Highlights & Ratios
PEG Ratio2.85
Price to Book (P/B)5.68
Price to Sales (P/S)7.05
P/FCF Ratio18.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹5,145.00Price Target Upside16.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)148.63
Revenue Forecast (FY)₹378.54B
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 compa...
How the Company Makes Money
HAL primarily makes money by supplying aerospace and defense products and services to the Government of India—especially the Indian Air Force, Indian Navy, and Indian Army—under contracts that cover development/production as well as long-term sust...
Hindustan Aeronautics Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 321.05B | 330.89B | 309.81B | 303.81B | 269.27B | 246.20B |
| Gross Profit | 185.21B | 101.76B | 179.27B | 185.38B | 160.13B | 140.40B |
| EBITDA | 89.60B | 81.17B | 79.94B | 82.88B | 52.87B | 44.06B |
| Net Income | 84.69B | 91.16B | 83.64B | 76.21B | 58.28B | 50.80B |
Balance Sheet | ||||||
| Total Assets | 1.23T | 1.32T | 1.06T | 780.95B | 672.04B | 583.92B |
| Cash, Cash Equivalents and Short-Term Investments | 461.93B | 461.97B | 381.82B | 264.31B | 203.03B | 143.47B |
| Total Debt | 114.00M | 109.70M | 11.60M | 11.00M | 516.90M | 492.70M |
| Total Liabilities | 860.27B | 913.70B | 712.82B | 489.53B | 436.28B | 390.75B |
| Stockholders Equity | 371.14B | 410.41B | 349.82B | 291.38B | 235.72B | 193.13B |
Cash Flow | ||||||
| Free Cash Flow | 66.48B | 124.66B | 127.13B | 73.06B | 70.48B | 85.32B |
| Operating Cash Flow | 73.77B | 139.51B | 136.43B | 82.23B | 88.30B | 100.33B |
| Investing Cash Flow | -77.84B | -113.87B | -107.71B | -64.10B | -57.28B | -127.60B |
| Financing Cash Flow | -10.04B | -33.45B | -25.79B | -19.99B | -17.31B | -13.49B |
Hindustan Aeronautics Limited Technical Analysis
Negative
4417.20
Price Trends
4154.45
Positive
4211.30
Positive
4387.47
Negative
Market Momentum
66.97
Positive
46.63
Neutral
23.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAL, the sentiment is Negative. The current price of 4417.2 is below the 20-day moving average (MA) of 4482.58, above the 50-day MA of 4154.45, and above the 200-day MA of 4387.47, indicating a neutral trend. The MACD of 66.97 indicates Positive momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HAL.
Hindustan Aeronautics Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹2.89T | 25.58 | ― | 0.90% | 6.80% | 8.98% | |
71 Outperform | ₹983.10B | 30.66 | ― | 0.47% | 13.77% | 14.39% | |
67 Neutral | ₹3.02T | 46.53 | ― | 0.60% | 16.16% | 13.86% | |
67 Neutral | ₹303.33B | 18.63 | ― | 0.80% | 37.95% | 41.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ₹477.94B | 184.29 | ― | 0.33% | 54.35% | 2.52% | |
55 Neutral | ₹396.44B | 43.80 | ― | 0.59% | 4.19% | -13.39% |
* Industrials Sector Average
IN:HAL
Hindustan Aeronautics Limited
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-12.44%
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Hindustan Aeronautics Limited Corporate Events
HAL Retains Top CARE Ratings on Strong Order Book and Liquidity
Mar 10, 2026
Hindustan Aeronautics Limited said CARE Ratings has reaffirmed its top-tier long-term and short-term bank facility ratings at CARE AAA; Stable and CARE A1+, reflecting its strategic importance to the Indian government, which holds a 71.64% stake, ...
HAL Wins Rs 2,901 Crore Defence Contract for ALH Mk-III Maritime Helicopters
Mar 3, 2026
Hindustan Aeronautics Limited has secured a Rs 2,901 crore contract from India’s Ministry of Defence to supply six Advanced Light Helicopter (ALH) Mk-III Maritime Role platforms to the Indian Coast Guard, along with operational role equipmen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.