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: $167.25\; \%$

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.
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