Hindustan Aeronautics Ltd.
NSE: HALHindustan Aeronautics Ltd.: A 30-second snapshot
Hindustan Aeronautics Limited (HAL) trades at ₹4,254.10 as of the last data point, sitting 2.94% below its 200-DMA (₹4,382.64) and 14.23% lower than 12 months ago, while recovering 6.12% over the past three months. The company carries near-zero debt (D/E 0.027), a 27.55% profit margin, and an ROE of 23.98%, but 5-year revenue growth of 1.8% and earnings growth of 5.5% remain modest relative to the trailing PE of 31.18. Analyst coverage stands at a mean rating of 1.83 across 24 analysts (1–5 scale, lower = more constructive).
P/E
31.2
Forward P/E
25.5
ROE
+24.0%
Debt / Equity
0.03
Profit Margin
+27.6%
Div. Yield
+1.2%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
65/100
News
8 headlines · 5 positive · 0 negative
India signs ₹2,312 crore deal with HAL for eight Dornier aircraft for Coast Guard - DD News
DD News
Hosur emerges as aerospace hub with Rolls-Royce-HAL expansion - The New Indian Express
The New Indian Express
Hindustan Aeronautics Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year - simplywall.st
simplywall.st
Hindustan Aeronautics Ltd Schedules Q4FY26 Earnings Call on May 15, 2026 - scanx.trade
scanx.trade
HAL Q4 Results: Check Hindustan Aeronautics Board Meeting Date, Share Price History And More - NDTV Profit
NDTV Profit
Recent context
- ·India signed a ₹2,312 crore contract with HAL in May 2026 for eight Dornier aircraft for the Indian Coast Guard, adding to HAL's defence order book and representing government procurement continuity.
- ·The Rolls-Royce–HAL joint facility in Hosur was reported expanding in May 2026, positioning Hosur as an emerging aerospace manufacturing hub — a development relevant to HAL's long-term production capacity.
- ·HAL beat analyst estimates in Q4FY26 per simplywall.st reporting dated May 2026; the Q4FY26 earnings call was scheduled for 15 May 2026, with quarterly results the key near-term datapoint for validating the forward PE compression thesis.
Strengths
- +Negligible leverage: D/E of 0.027 against an Infrastructure sector where peers such as LT operate with considerably higher debt loads — HAL carries minimal balance-sheet risk from borrowings.
- +Sector-lowest trailing PE of 31.18 among the 6-stock peer group (vs ABB 95.93, CGPOWER 116.0, CUMMINSIND 66.62, BEL 49.06, LT 34.28), indicating HAL is priced at a relative discount within its sector cohort.
- +Profit margin of 27.55% and ROE of 23.98% reflect above-median profitability in a capital-intensive sector; ROE has exceeded 15% in 4 of the tracked years.
- +Active order pipeline: ₹2,312 crore Dornier coast-guard contract signed May 2026 and the Rolls-Royce-HAL Hosur facility expansion are the two most recent publicly visible business events.
Weaknesses
- −Stock has been below the 200-DMA since it crossed under ₹4,382.64; the 14.23% trailing 12-month decline and 16.38% drawdown from the 52-week high reflect sustained selling pressure over the period.
- −5-year revenue growth of 1.8% is low for a company trading above a PE of 30, and earnings growth of 5.5% over 5 years implies the forward PE compression from 31.18 to 25.49 requires a material step-up in near-term earnings that is not yet visible in the historical trend.
- −Quality score of 46 ranks 4th of 6 peers in the Infrastructure grouping, and the consistency score of 65 (with FCF positive in only 4 of tracked years and a rising debt trend despite low absolute D/E) points to uneven financial performance across cycles.
- −Dividend yield of 1.16% is low relative to the earnings yield implied by the PE, indicating limited income return for shareholders at the current price and payout ratio.
Open questions
- ?Does HAL's 5-year revenue growth rate of 1.8% reflect structural constraints on defence PSU order execution, or is it a temporary lag ahead of a larger pipeline conversion cycle?
- ?How much of the 14.23% trailing 12-month price decline is attributable to broad PSU/defence sector de-rating versus HAL-specific factors, given the absence of comparable 1-year returns for its peer group?
- ?The forward PE of 25.49 versus trailing PE of 31.18 implies meaningful earnings growth in the next 12 months — what proportion of HAL's order book is contracted at fixed prices, and how does that affect margin predictability?
- ?With a rising debt trend flagged despite current D/E of 0.027, what is the trajectory of capital expenditure commitments (e.g. Hosur expansion) and how might that affect FCF consistency over the next 3–5 years?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HAL | Hindustan Aeronautics Ltd.You're viewing | 31.2 | +24.0% | 46 |
| Industry avg | across 5 peers | 72.4 | +23.4% | 47 |
| CUMMINSIND | Cummins India Ltd. | 66.6 | +29.5% | 69 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 116.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹4,254.10
SMA 50
₹4,226.07
SMA 200
₹4,382.64
RSI (14)
40.7 (neutral)
From 52w high
-16.4%
1Y return
-14.2%
3M return
+6.1%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumHAL is trading below the 200-DMA (SMA200 ₹4,382.64 vs current price ₹4,254.10), a gap of -2.94%, and is down 14.23% over the trailing 12 months. The stock is 16.38% below its 52-week high, though the 3-month return of +6.12% shows partial recovery from the trough.
- medium5-year revenue growth of 1.8% and earnings growth of 5.5% are modest for a defence PSU trading at a trailing PE of 31.18. The quality score of 46 places HAL 4th of 6 peers in the Infrastructure sector grouping. Debt trend is classified as rising despite a current D/E of 0.027, and FCF was positive in only 4 of tracked years with a consistency score of 65.
- low1-year price-change data is unavailable for all 5 peer benchmarks (BEL, LT, ABB, CGPOWER, CUMMINSIND), making relative price-performance ranking impossible for this cycle. HAL holds the lowest trailing PE (31.18) among the 6 stocks and ranks 3rd on ROE (23.98% vs CUMMINSIND 29.46%, BEL 27.56%).
- lowNews flow totals 8 articles — below the 10-article threshold for high-confidence sentiment inference. Coverage is concentrated on a ₹2,312 crore Dornier coast-guard deal and the Rolls-Royce-HAL Hosur expansion; 0 negative items in the sample.
Cross-section contradictions
- Trailing 12-month price return of -14.23% and a 16.38% drawdown from the 52-week high contrast with a profit margin of 27.55%, ROE of 23.98%, near-zero leverage (D/E 0.027), and all-positive recent news sentiment — suggesting the price decline reflects valuation re-rating or sector rotation rather than any evident fundamental deterioration in the tracked period.
- Forward PE of 25.49 represents an 18.2% compression from the trailing PE of 31.18, yet the 5-year historical earnings growth rate is 5.5% — the forward multiple embeds an implied acceleration that is considerably higher than recent historical growth.
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.
Fundamentals & technicals: refreshed 9 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days