Hindustan Aeronautics Ltd (HAL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Garden Reach Sh.

Bharat Electron

Data Pattern

Apollo Micro Sys

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Hind.Aeronautics

Mazagon Dock

MTAR Technologie

Zen Technologies

Cochin Shipyard

Why is Hindustan Aeronautics Ltd ?

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

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)

With ROE of 22.8, it has a Very Expensive valuation with a 8 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 -2.72%, its profits have fallen by -0.5%

High Institutional Holdings at 20.72%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

With its market cap of Rs 3,00,594 cr, it is the biggest company in the sector and constitutes 44.07% of the entire sector

Its annual Sales of Rs 32,104.78 are 49.03% of the industry

Real-Time Research Report

Verdict Report

How 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, Low Return

Absolute

Risk Adjusted

Volatility

Hind.Aeronautics

-2.75%

-0.09

31.57%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

20.72%

ROCE (avg)

100.13%

ROE (avg)

24.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.01

EV to EBIT

30.12

EV to EBITDA

25.75

EV to Capital Employed

-34.41

EV to Sales

7.87

PEG Ratio

Dividend Yield

0.90%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

22.82%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What 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 years

MOJO 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 years

MOJO 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 periods

MOJO 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 years

MOJO 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 quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income