Hindustan Aeronautics Ltd.
NSE: HALHindustan Aeronautics Ltd.: A 30-second snapshot
HAL trades at Rs 4,400.3, down 9.72% over the trailing 12 months and 12.11% below its 52-week high, though up 9.11% over the trailing 3 months. Fundamentals show ROE of 23.98% and a profit margin of 27.55% on a trailing PE of 31.99x (forward PE 26.03x), with 5-year revenue growth of just 1.8%. Mean analyst rating is 1.83 across 24 analysts (1-5 scale, lower = more constructive), against a news backdrop weighted toward negative headlines (5 of 8) tied to a supplier forgery case on the Tejas Mk1A program.
P/E
32.0
Forward P/E
26.0
ROE
+24.0%
Debt / Equity
0.03
Profit Margin
+27.6%
Div. Yield
+0.5%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
8 headlines · 1 positive · 5 negative
HAL announces final dividend of Rs 10 for FY26. Check record date and other details
The Economic Times
How an Indian company tried to take HAL for a ride on Tejas Mk1A project
ThePrint
Hindustan Aeronautics files FIR against supplier over alleged forged test reports in LCA Mk-1A programme
Moneycontrol.com
Tejas Fighter Jet Supply Chain Under Scanner, HAL Flags Forged Test Reports
NDTV
HAL files cheating, forgery case against Hyderabad supplier over alleged forged test reports for Tejas Mk1A components
The Hindu
Recent context
- ·HAL announced a final dividend of Rs 10 for FY26 (The Economic Times, June 29, 2026).
- ·Between June 9-12, 2026, multiple outlets (Moneycontrol, NDTV, The Hindu, ThePrint) reported HAL filed a cheating/forgery case (FIR) against a Hyderabad-based supplier over alleged forged test reports on Tejas Mk1A components.
- ·Overall news sentiment across the 8 tracked headlines skews negative (5 negative, 2 neutral, 1 positive), concentrated around the supplier-forgery episode.
Strengths
- +ROE of 23.98%, with ROE above 15% in 4 of the tracked years, and a profit margin of 27.55%.
- +Debt-to-equity of 0.027, among the lowest absolute leverage levels in the tracked Infrastructure sector peer set.
- +Cheapest trailing PE (31.99x) among the 6 ranked Infrastructure peers (rank 1 of 6 on PE), against peers such as ABB India (92.42x) and CG Power (117.33x).
- +FCF positive in 4 of the tracked years with a consistency score of 65/100, and the stock trades above its 200-DMA (Rs 4,367.92).
Weaknesses
- −5 of the last 8 tracked news headlines are negative, centered on an FIR/cheating case HAL filed against a Hyderabad supplier over alleged forged test reports on Tejas Mk1A components (Moneycontrol, NDTV, The Hindu, ThePrint, June 9-12, 2026).
- −5-year revenue growth of 1.8% and 5-year earnings growth of 5.5% trail the trailing PE of 31.99x, and quality score of 46 ranks 4th of 6 tracked Infrastructure peers.
- −Debt trend is classified as rising, and the stock is down 9.72% over the trailing 12 months and 12.11% below its 52-week high, trading marginally below its 50-DMA (Rs 4,402.82).
- −1-year price-change data is unavailable for all 5 tracked peers, limiting relative price-performance comparison within the sector.
Open questions
- ?How does the 'rising' debt trend reconcile with an absolute debt-to-equity of just 0.027, and what is driving the direction even at low absolute levels?
- ?Does the forged-test-report episode on Tejas Mk1A point to an isolated supplier issue or a broader supply-chain quality-control gap across HAL's other programs?
- ?What would need to change in HAL's 5-year revenue growth trajectory (currently 1.8%) to justify the forward PE compression to 26.03x from a trailing 31.99x?
- ?How does HAL's quality score of 46 (rank 4 of 6 Infrastructure peers) compare across the specific sub-metrics driving that score versus peers like Cummins India (69) and Bharat Electronics (49)?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HAL | Hindustan Aeronautics Ltd.You're viewing | 32.0 | +24.0% | 46 |
| Industry avg | across 5 peers | 71.3 | +23.4% | 47 |
| CUMMINSIND | Cummins India Ltd. | 64.4 | +29.5% | 69 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 92.4 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 117.3 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.3 | +16.9% | 26 |
Technical state
Current price
₹4,400.30
SMA 50
₹4,402.82
SMA 200
₹4,367.92
RSI (14)
52.3 (neutral)
From 52w high
-12.1%
1Y return
-9.7%
3M return
+9.1%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5 of 8 tracked headlines carry negative sentiment, with 4 centered on a single episode between June 9-12, 2026: HAL filed an FIR/cheating case against a Hyderabad-based supplier over alleged forged test reports on Tejas Mk1A components (reported by Moneycontrol, NDTV, The Hindu and ThePrint). This is a supply-chain quality-control issue on HAL's flagship fighter-jet program.
- medium5-year revenue growth of 1.8% and 5-year earnings growth of 5.5% sit well below the trailing PE of 31.99x (forward PE 26.03x), and quality score of 46 ranks HAL 4th of 6 tracked Infrastructure-sector peers. Debt trend is classified 'rising' even though absolute debt-to-equity remains low at 0.027, and consistency score stands at 65/100.
- lowPrice is down 9.72% over the trailing 12 months and sits 12.11% below its 52-week high, trading marginally below the 50-DMA (Rs 4,402.82) though still above the 200-DMA (Rs 4,367.92), with a neutral RSI of 52.27 and a +9.11% trailing 3-month move.
- low1-year price-change data is missing for all 5 tracked Infrastructure peers (BEL, LT, ABB, CGPOWER, CUMMINSIND), which limits relative sector price-performance comparison for this run.
Cross-section contradictions
- News sentiment for the trailing period is negative (5 of 8 headlines) yet the stock trades above its 200-DMA (Rs 4,367.92) with a 9.11% gain over the trailing 3 months and a neutral RSI of 52.27 -- near-term price action is not tracking the negative headline flow around the Tejas Mk1A supplier-forgery episode.
- Forward PE of 26.03x is approximately 19% below the trailing PE of 31.99x, implying an earnings acceleration materially above the 5-year historical earnings growth rate of 5.5%.
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 24 Jul 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 8 Jul 2026 · rotates through NIFTY 500 every ~5 days