Hindustan Aeronautics Ltd; HAL; 15x returns in 5 years; Do not invest now ?
Company Snapshots
- Hindustan Aeronautics Ltd (HAL) is engaged in the business of Manufacture of Aircraft and Helicopters
- Also engaged in Repair, Maintenance of Aircraft and Helicopters
- HAL plays a strategic role in India’s defense program being the only Indian company having specialization in aircraft manufacturing and providing its Maintenance and related services
- As of FY24, the order book stood at Rs 94,000 crore
Revenue Breakup
- Repair & Overhaul Helicopters: 50.9 %
- Sales of Aircraft & Helicopters: 18.2 %
- Spares: 19.4 %
- Development : 6.7%
- Others : 4.8%
Fundamental Analysis
Key Ratios
| Market Cap | ₹ 3,71,304 Cr. |
| Current Price | ₹ 5,552 |
| High/Low | ₹ 5,625 / 1,768 |
| Stock PE | 48.9 |
| Industry PE | 98.5 |
| ROCE | 38.9 % |
| ROE | 28.9 % |
| PEG Ratio | 1.85 |
| Debt To Equity | 0.00 |
Financial Trends
Revenue: 5 Year Comparison
- 2020: 21,445
- 2024: 30,381
- 5 Year Percentage change: 41.65
Net Profit: 5 Year Comparison
- 2020: 2,842
- 2024: 7,595
- Percentage change:
Shareholding pattern
Change in Shareholding Pattern
| Mar-23 | Mar-24 | 1 Year Change | |
| Promoters + | 71.64% | 71.64% | 0.00% |
| FIIs + | 12.93% | 12.42% | -0.51% |
| DIIs + | 9.13% | 9.58% | 0.45% |
| Public + | 6.28% | 6.36% | 0.08% |
Stock Price Returns
1 Year Stock Returns
- Bharat Electronics Limited has given 1 Year returns of 194.03 %
- 1 Lakh invested in July 2023 would have become 2.94 Lakhs in July 2024
5 Year Stock Returns
15x returns in 5 years
- Bharat Electronics Limited has given 1 Year returns of 1541.15 %
- 1 Lakh invested in July 2020 would have become 16.41 Lakhs in July 2024
Company Valuation
- Current PE- 48.9
- Median PE- 13 (For 5 years)
- Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is overvalued. Currently HAL is trading at 4 times it’s 5 years median valuation.
- Current Modi Government is focusing on the defence sector, this is the reason all the defence sector companies are trading at a higher valuation.
Do not invest now ?
- Considering the valuation HAL is overvalued company, investing at this point of time makes no sense as the chances of falling the share price are very high
- Company has really strong fundamentals & the strong Revenue & Net Profit Growth over the last 5 years.
- As well as HAL has became largecap with a market cap of 3.71 Lakh crore, in order to double up your money market cap has to grow to 7.42 lakh crore which is not easily achievable but within 5 years means till 2029 this can double up your money.
- Do not consider investing in this company if you are looking to book small term profit
Check Out this- DCX Systems: Best Defence Sector stock invest in 2024
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Hindustan Aeronautics Ltd.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
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