NSEI:HAL

Stock Analysis Report

Hindustan Aeronautics

Executive Summary

Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Hindustan Aeronautics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

HAL

-1.3%

IN Aerospace & Defense

-3.6%

IN Market


1 Year Return

-25.7%

HAL

-26.4%

IN Aerospace & Defense

-32.1%

IN Market

Return vs Industry: HAL matched the Indian Aerospace & Defense industry which returned -26.4% over the past year.

Return vs Market: HAL exceeded the Indian Market which returned -32.1% over the past year.


Shareholder returns

HALIndustryMarket
7 Day0.8%-1.3%-3.6%
30 Day-14.8%-10.7%-25.1%
90 Day-27.4%-28.5%-30.2%
1 Year-21.1%-25.7%-22.9%-26.4%-30.7%-32.1%
3 Yearn/a-30.8%-32.4%-19.8%-24.1%
5 Yearn/a-28.4%-30.8%-10.4%-15.2%

Price Volatility Vs. Market

How volatile is Hindustan Aeronautics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hindustan Aeronautics undervalued compared to its fair value and its price relative to the market?

6.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAL (₹529.55) is trading above our estimate of fair value (₹408.28)

Significantly Below Fair Value: HAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HAL is good value based on its PE Ratio (6.3x) compared to the Aerospace & Defense industry average (8x).

PE vs Market: HAL is good value based on its PE Ratio (6.3x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HAL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HAL is overvalued based on its PB Ratio (1.5x) compared to the IN Aerospace & Defense industry average (1.4x).


Next Steps

Future Growth

How is Hindustan Aeronautics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hindustan Aeronautics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hindustan Aeronautics performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAL has high quality earnings.

Growing Profit Margin: HAL's current net profit margins (13.3%) are higher than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: HAL's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: HAL's earnings growth over the past year (52.7%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: HAL earnings growth over the past year (52.7%) exceeded the Aerospace & Defense industry 33.5%.


Return on Equity

High ROE: HAL's Return on Equity (23.6%) is considered high.


Next Steps

Financial Health

How is Hindustan Aeronautics's financial position?


Financial Position Analysis

Short Term Liabilities: HAL's short term assets (₹392.3B) exceed its short term liabilities (₹270.4B).

Long Term Liabilities: HAL's short term assets (₹392.3B) exceed its long term liabilities (₹115.1B).


Debt to Equity History and Analysis

Debt Level: HAL's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: HAL's debt to equity ratio has increased from 1.1% to 12.7% over the past 5 years.

Debt Coverage: HAL's debt is well covered by operating cash flow (44.9%).

Interest Coverage: HAL's interest payments on its debt are well covered by EBIT (27.9x coverage).


Balance Sheet

Inventory Level: HAL has a high level of physical assets or inventory.

Debt Coverage by Assets: HAL's debt is covered by short term assets (assets are 25.7x debt).


Next Steps

Dividend

What is Hindustan Aeronautics's current dividend yield, its reliability and sustainability?

6.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HAL's dividend (6.28%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: HAL's dividend (6.28%) is in the top 25% of dividend payers in the Indian market (4.06%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HAL has been paying a dividend for less than 10 years.

Growing Dividend: HAL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.5%), HAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

R. Madhavan (57yo)

1.58s

Tenure

₹2,004,773

Compensation

Shri. R. Madhavan has been a Chairman and Managing Director of Hindustan Aeronautics Limited since September 01, 2018. Shri. Madhavan served as an Executive Director of Accessories Division, LUCKNOW at Hin ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD26.28K) is below average for companies of similar size in the Indian market ($USD660.18K).

Compensation vs Earnings: Insufficient data to compare R.'s compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
R. Madhavan
Chairman & MD1.58yrs₹2.00mno data
C.B. Ananthakrishnan
CFO, Director of Finance & Director1.67yrs₹2.28mno data
Sunil Kumar
Director of Operations & Directorno data₹4.44mno data
G. Sesha Reddy
Compliance Officer & Company Secretaryno data₹3.10mno data
Arup Chatterjee
Director of Engineering and R&D and Whole Time Director1.83yrs₹2.84mno data
S. Mittal
General Manager of Business Developmentno datano datano data
Alok Verma
Director of Human Resources0.25yrno datano data
M. Anandan
Chief Manager of Vigilanceno datano datano data
K. Chandrakanth
Chief Manager for HR - Helicopter Divisionno datano datano data
Unni Pillai
Executive Director of CTP-RWno datano datano data

1.6yrs

Average Tenure

57yo

Average Age

Experienced Management: HAL's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
R. Madhavan
Chairman & MD1.58yrs₹2.00mno data
C.B. Ananthakrishnan
CFO, Director of Finance & Director1.67yrs₹2.28mno data
Sunil Kumar
Director of Operations & Directorno data₹4.44mno data
Arup Chatterjee
Director of Engineering and R&D and Whole Time Director1.83yrs₹2.84mno data
M. Velpari
Additional Director & Director of Operationsno datano datano data
V. Chamola
Director8.75yrs₹6.46mno data
Prem Kataria
Permanent Inviteeno datano datano data
R. Pattanaik
Permanent Inviteeno datano datano data
Ravi Thodge
Permanent Inviteeno datano datano data
Chandraker Bharti
Government Nominee Director1.92yrsno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: HAL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hindustan Aeronautics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hindustan Aeronautics Limited
  • Ticker: HAL
  • Exchange: NSEI
  • Founded: 1940
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: ₹177.075b
  • Shares outstanding: 334.39m
  • Website: https://www.hal-india.co.in

Number of Employees


Location

  • Hindustan Aeronautics Limited
  • 15/1, Cubbon Road
  • Bengaluru
  • Karnataka
  • 560 001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HALNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2018
541154BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2018

Biography

Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India. It offers power plants; and materials, including castings, general forgings, precision forgings, powder metallurgy products, rubber products, rolled rings, and composites. The company also provides avionics, such as inertial navigation systems, auto stabilizers, head up displays, laser range systems, flight data recorders, communication equipment, radio navigation equipment, air borne secondary radars, missile inertial navigation systems, radar computers, and ground radars; and system and accessories comprising hydraulic systems, wheels and brake systems, flight control systems, ejector release units, panel instruments, gyroscopic/barometric instruments, oxygen systems, fuel management systems, and hydraulic pumps. In addition, it offers various services in the areas of aircraft and helicopters MRO, and power plants, as well as systems, accessories, and avionics. The company also exports its products. It serves space, defense, and civil markets. Hindustan Aeronautics Limited has a strategic collaboration agreement with Dynamatic Technologies Limited to manufacture IAI-designed UAVs. The company was incorporated in 1940 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 14:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.