ScoreWhy is Hindustan Aeronautics Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.71%
- Healthy long term growth as Operating profit has grown by an annual rate 17.65%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
Flat results in Sep 25
- PBT LESS OI(Q) At Rs 1,339.31 cr has Fallen at -9.16%
- NON-OPERATING INCOME(Q) is 39.86 % of Profit Before Tax (PBT)
3
With ROE of 22.8, it has a Very Expensive valuation with a 7.3 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.85%, its profits have fallen by -0.5%
4
High Institutional Holdings at 20.6%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Returns over the last 3 years
- Along with generating 7.85% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
6
With its market cap of Rs 2,69,841 cr, it is the second biggest company in the sector (behind Bharat Electron)and constitutes 40.84% of the entire sector
- Its annual Sales of Rs 32,104.78 are 48.07% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hind.Aeronautics should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hind.Aeronautics for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hind.Aeronautics
7.85%
0.27
29.60%
Sensex
7.07%
0.61
11.53%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.56%
EBIT Growth (5y)
17.65%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-1.20
Sales to Capital Employed (avg)
1.15
Tax Ratio
25.33%
Dividend Payout Ratio
30.71%
Pledged Shares
0
Institutional Holding
20.60%
ROCE (avg)
100.13%
ROE (avg)
24.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
43
Price to Book Value
7.33
EV to EBIT
27.12
EV to EBITDA
23.18
EV to Capital Employed
-30.98
EV to Sales
7.09
PEG Ratio
NA
Dividend Yield
0.98%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
22.82%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CF(Y)
Highest at Rs 13,645.12 Cr
DPS(Y)
Highest at Rs 40.00
DPR(Y)
Highest at 32.17%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.27 times
-4What is not working for the Company
PBT LESS OI(Q)
At Rs 1,339.31 cr has Fallen at -9.16%
NON-OPERATING INCOME(Q)
is 39.86 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Hind.Aeronautics
Operating Cash Flow - Annually
Highest at Rs 13,645.12 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 40.00 and Grown
each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 7.27 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Highest at 32.17%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Hind.Aeronautics
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,339.31 cr has Fallen at -9.16%
Year on Year (YoY)MOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 39.86 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 887.67 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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