Hindustan Aeronautics Limited

NSEI:HAL Stock Report

Market Cap: ₹2.7t

Hindustan Aeronautics Valuation

Is HAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HAL (₹3983.45) is trading above our estimate of fair value (₹417.59)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HAL?

Key metric: As HAL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HAL. This is calculated by dividing HAL's market cap by their current earnings.
What is HAL's PE Ratio?
PE Ratio31.3x
Earnings₹85.18b
Market Cap₹2.71t

Price to Earnings Ratio vs Peers

How does HAL's PE Ratio compare to its peers?

The above table shows the PE ratio for HAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.6x
500049 Bharat Electronics
44.4x15.0%₹2.0t
MAZDOCK Mazagon Dock Shipbuilders
31.4x-2.0%₹822.0b
BDL Bharat Dynamics
61.4x22.4%₹354.2b
GRSE Garden Reach Shipbuilders & Engineers
41.1x16.1%₹161.4b
HAL Hindustan Aeronautics
31.3x13.4%₹2.7t

Price-To-Earnings vs Peers: HAL is good value based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (44.6x).

Price to Earnings Ratio vs Industry

How does HAL's PE Ratio compare vs other companies in the Asian Aerospace & Defense Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HAL 31.3xIndustry Avg. 47.4xNo. of Companies11PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HAL is good value based on its Price-To-Earnings Ratio (31.3x) compared to the Asian Aerospace & Defense industry average (47.4x).

Price to Earnings Ratio vs Fair Ratio

What is HAL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.3x
Fair PE Ratio50.3x

Price-To-Earnings vs Fair Ratio: HAL is good value based on its Price-To-Earnings Ratio (31.3x) compared to the estimated Fair Price-To-Earnings Ratio (50.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HAL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,983.45
₹5,199.42
+30.5%
11.2%₹5,902.00₹3,800.00n/a12
Nov ’25₹4,288.00
₹5,252.42
+22.5%
11.7%₹6,184.00₹3,800.00n/a12
Oct ’25₹4,426.10
₹5,238.75
+18.4%
12.1%₹6,145.00₹3,675.00n/a12
Sep ’25₹4,679.95
₹5,238.75
+11.9%
12.1%₹6,145.00₹3,675.00n/a12
Aug ’25₹4,813.30
₹5,145.00
+6.9%
12.4%₹6,145.00₹3,675.00n/a11
Jul ’25₹5,394.05
₹5,117.73
-5.1%
12.4%₹6,145.00₹3,675.00n/a11
Jun ’25₹4,973.85
₹4,918.73
-1.1%
15.6%₹5,725.00₹3,225.00n/a11
May ’25₹3,939.35
₹3,091.36
-21.5%
21.9%₹3,900.00₹1,730.00n/a11
Apr ’25₹3,403.35
₹3,040.08
-10.7%
22.9%₹3,900.00₹1,495.00n/a12
Mar ’25₹3,154.30
₹2,841.40
-9.9%
22.2%₹3,618.00₹1,495.00n/a10
Feb ’25₹2,997.55
₹2,672.10
-10.9%
24.4%₹3,618.00₹1,495.00n/a10
Jan ’25₹2,826.35
₹2,486.56
-12.0%
13.1%₹3,000.00₹2,055.00n/a9
Dec ’24₹2,462.25
₹2,281.36
-7.3%
16.1%₹2,952.00₹1,616.00n/a11
Nov ’24₹1,822.70
₹2,162.25
+18.6%
14.3%₹2,711.00₹1,616.00₹4,288.0010
Oct ’24₹1,928.15
₹2,162.35
+12.1%
14.3%₹2,711.00₹1,616.00₹4,426.1010
Sep ’24₹1,970.88
₹2,104.67
+6.8%
13.5%₹2,711.00₹1,616.00₹4,679.959
Aug ’24₹1,932.95
₹1,910.38
-1.2%
10.9%₹2,196.50₹1,616.00₹4,813.308
Jul ’24₹1,896.25
₹1,738.07
-8.3%
8.7%₹2,057.50₹1,550.00₹5,394.057
Jun ’24₹1,540.38
₹1,642.13
+6.6%
11.0%₹1,810.50₹1,217.50₹4,973.858
May ’24₹1,460.10
₹1,447.19
-0.9%
15.6%₹1,650.00₹965.00₹3,939.358
Apr ’24₹1,365.55
₹1,426.11
+4.4%
15.5%₹1,650.00₹965.00₹3,403.359
Mar ’24₹1,342.13
₹1,426.11
+6.3%
15.5%₹1,650.00₹965.00₹3,154.309
Feb ’24₹1,182.18
₹1,418.81
+20.0%
16.1%₹1,650.00₹965.00₹2,997.558
Jan ’24₹1,265.63
₹1,418.81
+12.1%
16.1%₹1,650.00₹965.00₹2,826.358
Dec ’23₹1,377.70
₹1,400.07
+1.6%
17.0%₹1,650.00₹965.00₹2,462.257
Nov ’23₹1,265.68
₹1,335.75
+5.5%
14.2%₹1,517.50₹965.00₹1,822.706

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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