Check Before You Invest : Hindustan Aeronautics Ltd

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 7.63%, indicating slower growth.

Q.2 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 5-year historical median of 30.59%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Hindustan Aeronautics Ltd?

Hindustan Aeronautics Ltd Return on Asset is 9.22%, which is in line with its 5-year historical median of 9.28%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hindustan Aeronautics Ltd?

Hindustan Aeronautics Ltd Return on equity is 26.09% for FY-2025, which is in line with its 5-year historical median of 27.18%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Hindustan Aeronautics Ltd?

Hindustan Aeronautics Ltd Cash conversion cycle is 184 days, in line with its 5-year historical median of 184 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year 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.6 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.7 Operating Profit Margin of Hindustan Aeronautics Ltd?

Hindustan Aeronautics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.23% for FY-2025, which is above its 5-year median of 25.39% indicating increasing margins.

Q.8 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	5-year Historic Median
Gross Profit Margin	39.3	30.8
Operating Profit Margin	31.23	25.39
Net Profit Margin	27	21.64

Q.9 Debt to Equity ratio of Hindustan Aeronautics Ltd?

Hindustan Aeronautics Ltd Debt-to-Equity ratio is 0.00, which is above with the industry average of , indicating higher 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 10.25%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2	10.3
Gross Profit Growth	4.8	20.9
Operating Profit Growth	-1.3	17.9
Net Profit Growth	9.8	23.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.34	0.49
ROE	26.09	25.35
ROCE	33.91	30.96
Cash Conversion Cycle (days)	184.23	178

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 57.21% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	57.2%	45.7%	1.9%

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 compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	32.6	22.11	64.64
Price to Book	7.44	7.63	7.08
Price to Sales	8.83	8.15	8.12
EV to EBITDA	18.59	18.88	33.53

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