Hindustan Aeronautics Ltd.
Infrastructure · NSE
52-week range
₹3,479 – ₹5,105
From 52w high
-6.2%
RSI (14)
78.7
vs SMA 50 / 200
↑ 50 · ↑ 200
Hindustan Aeronautics (HAL) is a government-owned aerospace and defence manufacturer trading at 4,788, up 7.47% over 12 months and 14.48% over the past 3 months, with both the 50-DMA and 200-DMA currently below the market price. The stock carries a trailing PE of 35.99 against a forward PE of 32.75, a debt-to-equity of 0.031, and a 27.08% profit margin, with 5-year earnings CAGR of 29.6% on 10.7% revenue growth. A 2-lakh-crore order book and a recent HAL-GE jet-engine technology agreement anchor the near-term earnings pipeline.
- ✓Profit margin of 27.08% is exceptionally high for a capital-intensive defence manufacturer; 5-year earnings CAGR of 29.6% has outpaced 5-year revenue CAGR of 10.7%, indicating sustained operating leverage over the measurement period.
- ✓Debt-to-equity of 0.031 signals an effectively debt-free balance sheet; the debt trend is classified as falling, and FCF was positive in 4 of the tracked measurement years.
- ✓Fundamental consistency score of 86 out of 100, with ROE above 15% in 4 of the tracked years, reflects above-average earnings-quality persistence relative to the defence PSU peer set.
- ✓At a trailing PE of 35.99, HAL is the second-cheapest stock in its 6-peer Infrastructure group, sitting well below ABB India (95.2x), CG Power (113.8x), and Cummins India (66.5x), and close to L&T (34.0x).
- ✗RSI of 78.66 is in overbought territory; the stock has advanced 14.48% over 3 months and now stands 17.5% above its 50-DMA and 9.1% above its 200-DMA, the widest gap to trend averages in recent months.
- ✗ROE for the current period is unavailable, preventing direct comparison with peers L&T (15.54%) and CG Power (19.56%) and reducing confidence in the quality score of 53.
- ✗CMD D.K. Sunil departed on 1 May 2026; new CMD Ravi K. has just assumed charge during a period when the company is executing a 10,000-crore Nashik production-line expansion for Tejas MK-1A — adding a leadership-transition variable to an operationally intensive phase.
- ✗Quality score of 53 ranks 2nd in the peer group but sits in the mid-range on an absolute basis, reflecting room for improvement in the composite earnings-quality and capital-efficiency assessment.
- ·HAL and GE Aerospace signed a technology agreement in April 2026 for joint jet-engine manufacturing, extending an existing defence partnership and aligning with Make-in-India indigenisation objectives.
- ·CMD D.K. Sunil stepped down on 1 May 2026; Ravi K. assumed charge as Chairman and Managing Director on the same date per The Hindu and Times of India — no operational disruption has been publicly disclosed.
- ·HAL is deploying 10,000 crore to scale the Nashik facility for Tejas MK-1A production against a 2-lakh-crore reported order book, indicating multi-year revenue visibility alongside multi-year capital commitment.
- ?Does the 29.6% five-year earnings CAGR reflect a durable structural shift in India's defence spending allocation, or does it rely on a concentrated set of large government contracts that may not recur at the same scale?
- ?How has HAL historically navigated CMD transitions, and have past leadership changes coincided with any delays in order execution or changes in Ministry of Defence contract disbursements?
- ?With the stock sitting 9.1% above its 200-DMA and RSI at 78.66, what have prior episodes of mean-reversion to trend averages looked like for HAL in terms of magnitude and duration?
- ?Given that HAL is grouped with peers like ABB India and CG Power — businesses with very different revenue models — what peer group most accurately benchmarks HAL's PE of 35.99 and profit margin of 27.08%?
PE
36.0
Forward PE
32.7
ROE
—
Profit margin
+27.1%
D/E
0.03
Dividend yield
+1.0%
Quality score
53/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.