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Hindustan Aeronautics Limited
(HAL)
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Rating:77Outperform
Price Target:
₹5,693.00
▲(24.60% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance (high profitability, robust cash generation, and very low leverage). Technicals support the trend but are tempered by overbought signals that elevate near-term downside risk. Valuation is the main constraint given the high P/E and low dividend yield.
Positive Factors
Sustained Revenue and Earnings Growth
Consistent revenue expansion, alongside 12.16% EPS growth, shows durable demand for HAL’s aerospace and defence programs. Continued platform production, upgrades and lifecycle support can sustain earnings as India expands defence manufacturing and fleet capabilities.
Negative Factors
Recent Gross Margin Pressure
The latest gross-profit decline despite revenue growth signals potential cost inflation, unfavorable program mix or execution pressure. If persistent, weaker margins could limit earnings conversion and reduce the benefit of HAL’s otherwise strong top-line expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Earnings Growth
Consistent revenue expansion, alongside 12.16% EPS growth, shows durable demand for HAL’s aerospace and defence programs. Continued platform production, upgrades and lifecycle support can sustain earnings as India expands defence manufacturing and fleet capabilities.
Read all positive factors
Hindustan Aeronautics Limited (HAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.34T
Dividend Yield0.5%
Average Volume (3M)71.80K
Price to Earnings (P/E)35.9
Beta (1Y)1.43
Revenue Growth7.42%
EPS Growth12.16%
CountryIN
Employees35,566
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)136.30
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
₹5,733.00Price Target Upside25.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)148.92
Revenue Forecast (FY)₹376.42B
Hindustan Aeronautics Limited Business Overview & Revenue Model
Company Description
Hindustan Aeronautics Limited (HAL) is a leading aerospace enterprise engaged in the full spectrum of activities, from the conceptualization and production of aviation assets to their comprehensive maintenance, modernization, and support. Operatin...
How the Company Makes Money
HAL makes money primarily by contracting with government defence customers (and, to a lesser extent, other customers) across the full aircraft and aerospace lifecycle—design and development, series manufacturing, and long-term product support. Key...
Hindustan Aeronautics Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 330.89B | 309.81B | 303.81B | 269.27B | 246.20B |
| Gross Profit | 101.76B | 179.27B | 185.38B | 160.13B | 140.40B |
| EBITDA | 135.13B | 79.94B | 82.88B | 52.87B | 44.06B |
| Net Income | 91.16B | 83.64B | 76.21B | 58.28B | 50.80B |
Balance Sheet | |||||
| Total Assets | 1.32T | 1.06T | 780.95B | 672.04B | 583.92B |
| Cash, Cash Equivalents and Short-Term Investments | 461.96B | 381.82B | 264.31B | 203.03B | 143.47B |
| Total Debt | 109.70M | 11.60M | 11.00M | 516.90M | 492.70M |
| Total Liabilities | 913.70B | 712.82B | 489.53B | 436.28B | 390.75B |
| Stockholders Equity | 410.41B | 349.82B | 291.38B | 235.72B | 193.13B |
Cash Flow | |||||
| Free Cash Flow | 124.66B | 127.13B | 73.06B | 70.48B | 85.32B |
| Operating Cash Flow | 139.51B | 136.43B | 82.23B | 88.30B | 100.33B |
| Investing Cash Flow | -113.87B | -107.71B | -64.10B | -57.28B | -127.60B |
| Financing Cash Flow | -33.45B | -25.79B | -19.99B | -17.31B | -13.49B |
Hindustan Aeronautics Limited Technical Analysis
Positive
4569.15
Price Trends
4568.63
Positive
4413.75
Positive
4353.60
Positive
Market Momentum
143.42
Negative
67.92
Neutral
68.24
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 4569.15 is below the 20-day moving average (MA) of 4804.81, above the 50-day MA of 4568.63, and above the 200-day MA of 4353.60, indicating a bullish trend. The MACD of 143.42 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 68.24 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹3.34T | 35.87 | ― | 1.09% | 7.42% | 12.16% | |
70 Outperform | ₹263.03B | 100.94 | ― | 0.23% | 33.81% | 24.90% | |
68 Neutral | ₹2.99T | 49.29 | ― | 0.70% | 19.83% | 11.75% | |
66 Neutral | ₹121.09B | 127.95 | ― | 0.04% | 36.61% | 47.63% | |
60 Neutral | ₹143.70B | 111.14 | ― | 0.09% | 69.08% | 59.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ₹480.67B | 95.64 | ― | 0.41% | -18.69% | -7.12% |
* General Sector Average
IN:HAL
Hindustan Aeronautics Limited
4,988.00
561.88
12.69%
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385.20
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IN:BDL
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1,361.00
-150.41
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Bharat Electronics Limited
413.50
40.75
10.93%
IN:DATAPATTNS
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4,826.40
2,242.43
86.78%
IN:PARAS
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1,501.00
817.00
119.44%
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.