Hindustan Aeronautics Limited (HAL) AI Stock Analysis

• Market Cap: ₹2.97T
• Dividend Yield: 0.9%
• Average Volume (3M): 74.66K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.74
• Revenue Growth: 2.07%
• EPS Growth: 0.81%
• Country: IN
• Employees: 22,655
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 20.69
• Shares Outstanding: 668,775,000
• 10 Day Avg. Volume: 53,652
• 30 Day Avg. Volume: 74,658
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹5,534.00
• Price Target Upside: 24.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ₹4,966.00 ▲(11.51% 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 (HAL) is a premier aerospace and defense company in India, engaged in the design, development, production, and maintenance of aircraft, helicopters, avionics, and aerospace components. The company operates in various sectors including military and civil aviation, providing a range of products and services such as fighter jets, transport aircraft, helicopters, and engines, as well as support and training solutions.

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 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	309.81B	309.81B	281.62B	269.27B	223.69B	243.61B
Gross Profit	173.01B	183.21B	99.21B	174.72B	119.99B	148.71B
EBITDA	101.78B	83.00B	116.17B	83.30B	56.47B	63.43B
Net Income	83.64B	83.64B	76.21B	58.28B	32.46B	50.80B
Balance Sheet
Total Assets	1.06T	1.06T	780.95B	672.04B	519.46B	583.92B
Cash, Cash Equivalents and Short-Term Investments	381.82B	381.82B	264.31B	214.36B	72.60B	143.47B
Total Debt	11.60M	11.60M	11.00M	26.50M	114.60M	24.90M
Total Liabilities	712.82B	712.82B	489.53B	436.28B	365.30B	390.75B
Stockholders Equity	349.82B	349.82B	291.38B	235.72B	154.12B	193.13B
Cash Flow
Free Cash Flow	0.00	127.13B	64.68B	70.48B	139.45B	85.32B
Operating Cash Flow	0.00	136.43B	82.23B	88.30B	152.63B	100.33B
Investing Cash Flow	0.00	-107.71B	-64.10B	-57.28B	-12.71B	-127.60B
Financing Cash Flow	0.00	-25.79B	-19.99B	-17.31B	-71.25B	-13.49B

Hindustan Aeronautics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4453.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAL, the sentiment is Positive. The current price of 4453.5 is above the 20-day moving average (MA) of 4439.32, below the 50-day MA of 4608.72, and above the 200-day MA of 4312.80, indicating a neutral trend. The MACD of -43.02 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	₹2.97T	35.75		0.90%	2.07%	0.81%
BEL	66 Neutral	₹2.72T	49.42		0.64%	14.23%	29.82%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
COCHINSHIP	63 Neutral	₹434.71B	51.69		0.60%	24.03%	-2.11%
GRSE	61 Neutral	₹271.69B	48.48		0.44%	39.76%	52.37%
MAZDOCK	61 Neutral	₹1.07T	49.54		0.77%	21.24%	-6.43%
BDL	53 Neutral	₹528.25B	94.20		0.34%	50.34%	-3.00%

Hindustan Aeronautics Limited Corporate Events

Hindustan Aeronautics Limited Appoints New Director of Engineering and R&D

Hindustan Aeronautics Limited has announced a change in its board of directors, appointing Shri Ajay Kumar Shrivastava as the Director of Engineering and Research & Development. This appointment, effective from July 15, 2025, is subject to shareholder approval and marks a strategic move to bolster the company’s engineering and R&D capabilities, potentially enhancing its competitive position in the aerospace and defense industry.

Hindustan Aeronautics Limited Announces Board Change

Hindustan Aeronautics Limited has announced a change in its board of directors, with Ms. Manisha Chandra appointed as a part-time official director, replacing Shri Amit Satija. This change, effective from July 15, 2025, reflects the company’s ongoing alignment with the Ministry of Defence’s directives and may influence its strategic operations and stakeholder relations.