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INVESTMENT INSIGHTS

Check Before You Invest : Hindustan Aeronautics Ltd

BSE: 541154 NSE: HAL ISIN: INE066F01020
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Hindustan Aeronautics Ltd belong to?
Hindustan Aeronautics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Hindustan Aeronautics Ltd a good quality company?
Hindustan Aeronautics Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Hindustan Aeronautics Ltd undervalued or overvalued?
Hindustan Aeronautics Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Hindustan Aeronautics Ltd a good buy now?
Hindustan Aeronautics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd revenue growth is 2% for FY-2025 , which is below its 5 year CAGR of 7.6% , indicating slower growth.
Q.2 Gross Profit margin of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.3% for FY-2025 , which is above its 5 year median of 30.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.14% for FY-2025 , which is above its 5 year median of 25.28% indicating increasing margins.
Q.4 Net Profit Margin of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Net Profit Margin is 27% for FY-2025 , is above with its 5 year median of 21.64%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 39.3 30.8
Operating Profit Margin 31.14 25.28
Net Profit Margin 27 21.64
Q.5 Return on Asset of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Return on Asset is 9.22%, which is below its 5 year historical median of 9.28%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Return on equity is 26.09% for FY-2025 , which is below its historical median of 27.18%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Return on capital employed is 33.91% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Cash conversion cycle is 184 days, below its historical median of 184 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.34 0.43
ROE 26.09 27.18
ROCE 33.91 30.59
Cash Conversion Cycle 184 days 184 days
Q.9 Debt to Equity ratio of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Aeronautics Ltd?
Promoters hold 71.64% of the Hindustan Aeronautics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Aeronautics Ltd vs industry peers?
Hindustan Aeronautics Ltd revenue CAGR is 7.63% , compared to the industry median CAGR of 3.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 30,981 8,823.1
Gross Profit 12,175.5 2,196.9
Operating Profit 9,621 1,979
Net Profit 8,364 1,503.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.34 0.22
ROE 26.09 11.76
ROCE 33.91 15.3
Cash Conversion Cycle (days) 184.23 85

Valuation & price assessment

Q.1 Stock return of Hindustan Aeronautics Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 55.46% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 55.5% 45.8% 4%
Q.3 Valuation ratios of Hindustan Aeronautics Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 32.81 13.34 41.06
Price to Book 7.49 2.85 7.15
Price to Sales 8.89 2.01 8.05
EV to EBITDA 18.74 6.71 35.11

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