Hindustan Aeronautics Limited
Hindustan Aeronautics Limited Fundamental Analysis
Hindustan Aeronautics Limited (HAL.NS) shows moderate financial fundamentals with a PE ratio of 29.15, profit margin of 27.08%, and ROE of 25.73%. The company generates $328.4B in annual revenue with weak year-over-year growth of 1.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HAL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHAL.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakHAL.NS trades at a premium to fair value.
Growth Score
WeakHAL.NS faces weak or negative growth trends.
Financial Health Score
ExcellentHAL.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateHAL.NS maintains healthy but balanced margins.
Key Financial Metrics
Is HAL.NS Expensive or Cheap?
P/E Ratio
HAL.NS trades at 29.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HAL.NS's PEG of 5.79 indicates potential overvaluation.
Price to Book
The market values Hindustan Aeronautics Limited at 6.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.87 times EBITDA. This signals the market has high growth expectations.
How Well Does HAL.NS Make Money?
Net Profit Margin
For every $100 in sales, Hindustan Aeronautics Limited keeps $27.08 as profit after all expenses.
Operating Margin
Core operations generate 26.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.73 in profit for every $100 of shareholder equity.
ROA
Hindustan Aeronautics Limited generates $7.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hindustan Aeronautics Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Hindustan Aeronautics Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HAL.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How HAL.NS Stacks Against Its Sector Peers
| Metric | HAL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.15 | 26.64 | Neutral |
| ROE | 25.73% | 1309.00% | Weak |
| Net Margin | 27.08% | -34303.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.19 | 10.68 | Strong Liquidity |
| ROA | 7.22% | -1549361.00% (disorted) | Weak |
HAL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hindustan Aeronautics Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
190.15%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
741.63%
Industry Style: Cyclical, Value, Infrastructure
High Growth