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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 541154 | NSE: HAL

Fundamental Analysis of Hindustan Aeronautics Ltd

About the Company - Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd. is a Public Limited Listed company incorporated on 16/08/1963 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L35301KA1963GOI001622 and registration number is 001622. Currently Company is involved in the business activities of Repair of transport equipment, except motor vehicles. Company’s Total Operating Revenue is Rs. 24620.21 Cr. and Equity Capital is Rs. 334.39 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseNo: 15/1, Cubbon Road, Bengaluru Karnataka 560001investors@hal-india.co.in
http://www.hal-india.co.in
Management
NamePosition Held
Mr. C B AnanthakrishnanDirector - Finance & CFO
Mr. E P JayadevaDirector - Operations
Mr. Atasi Baran PradhanDirector - Human Resources
Dr. Divya GuptaIndependent Director
Mr. Deepak Abasaheb ShindeIndependent Director
Dr. D K SunilDirector
Mr. T NatarajanGovernment Nominee Director
Mr. M Z SiddiqueGovernment Nominee Director

Basic Stock Data of Hindustan Aeronautics Ltd

Last Updated: June 22, 2024, 10:43 pm

Market Cap 3,45,793 Cr.
Current Price 5,171
High / Low5,586/1,768
Stock P/E45.5
Book Value 434
Dividend Yield0.53 %
ROCE38.9 %
ROE28.9 %
Face Value 5.00
PEG Ratio2.73

Competitors of Hindustan Aeronautics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Paras Defence and Space Technologies Ltd 5,345 Cr. 1,3711,528/604156 1150.00 %10.8 %7.96 % 10.0
Data Patterns (India) Ltd 16,496 Cr. 2,9473,444/1,73590.8 2370.22 %20.1 %14.6 % 2.00
DCX Systems Ltd 3,992 Cr. 358393/23558.6 1000.00 %9.25 %8.08 % 2.00
Zen Technologies Ltd 8,475 Cr. 1,0081,130/38566.4 53.90.02 %47.3 %33.1 % 1.00
Mishra Dhatu Nigam Ltd 8,572 Cr. 458548/26993.9 70.40.73 %9.39 %7.00 % 10.0
Industry Average8,576.00 Cr1,228.4093.14115.260.19%19.37%14.15%5.00

Hindustan Aeronautics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5,42610,8661,6165,5525,89411,5583,6235,1455,66612,4953,9155,6366,061
Expenses4,2178,1551,3724,3094,4639,0632,7983,5354,6809,2523,0364,1074,627
Operating Profit1,2092,7112441,2431,4312,4958251,6109863,2428801,5291,434
OPM %22%25%15%22%24%22%23%31%17%26%22%27%24%
Other Income92133150138195503192261497722411471460
Interest533015114200255000
Depreciation1796481112433733822082522691,055201349212
Profit before tax1,0692,1662681,1381,2512,5748091,6191,2122,8541,0891,6501,681
Tax %20%25%26%25%25%-21%25%25%5%0%25%25%25%
Net Profit8531,6211998489383,1026071,2091,1542,8418141,2351,254
EPS in Rs12.7624.242.9712.6814.0246.389.0718.0817.2542.4812.1718.4718.74

Last Updated: June 6, 2024, 8:56 am

Hindustan Aeronautics Ltd Quarterly Chart

Hindustan Aeronautics Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales14,21114,32815,13515,73016,75817,95018,51920,00821,44522,88224,62026,92827,712
Expenses12,66513,56013,56513,37914,28114,71415,05915,44016,56517,54119,20020,25821,075
Operating Profit1,5467681,5702,3512,4783,2363,4604,5694,8805,3415,4206,6696,636
OPM %11%5%10%15%15%18%19%23%23%23%22%25%24%
Other Income2,5113,3352,6181,6421,5981,0447613764153609861,6722,101
Interest6581561635177359267656458
Depreciation7226016038068636819471,0249981,1571,1101,7841,875
Profit before tax3,3293,4973,5783,1733,2073,5833,2403,7423,9384,2775,2316,4936,805
Tax %24%14%25%25%38%27%39%37%28%24%3%10%
Net Profit2,5392,9972,6932,3881,9982,6161,9872,3462,8423,2395,0865,8116,045
EPS in Rs105.37124.3527.9324.7727.6336.1829.7235.0842.4948.4476.0586.8990.37
Dividend Payout %29%28%33%20%31%31%54%28%39%31%26%32%

Hindustan Aeronautics Ltd Profit & Loss Yearly Chart

Hindustan Aeronautics Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:9%
3 Years:10%
TTM:13%
Compounded Profit Growth
10 Years:11%
5 Years:26%
3 Years:33%
TTM:31%
Stock Price CAGR
10 Years:%
5 Years:72%
3 Years:117%
1 Year:167%
Return on Equity
10 Years:23%
5 Years:27%
3 Years:28%
Last Year:29%

Last Updated: June 13, 2024, 9:26 am

Hindustan Aeronautics Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital120120482482362362334334334334334334334
Reserves11,21813,25814,53316,30410,65812,1759,15111,74112,86515,03418,93023,17224,753
Borrowings556845801,0229054,1575,9275349510
Other Liabilities43,96144,14648,18047,25245,42038,14938,04435,23835,00837,60140,87145,63246,679
Total Liabilities55,30557,52963,87864,04256,51951,70848,43451,47054,13553,02260,18369,19071,766
Fixed Assets1,9382,0082,0887,1916,9257,3507,5667,4547,3517,1586,7586,8278,157
CWIP701031852161,0251,3891,4581,4992,0401,9482,4721,884785
Investments5277077077458869819899029401,0551,2941,3851,385
Other Assets52,76954,71060,89855,89047,68241,98838,42141,61543,80342,86149,65959,09361,439
Total Assets55,30557,52963,87864,04256,51951,70848,43451,47054,13553,02260,18369,19071,766

Hindustan Aeronautics Ltd Reserves and Borrowings Chart

Hindustan Aeronautics Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -423-734-7,6941,53715,12410,1808,836
Cash from Investing Activity 3,0215945,292-1,334-1,190-12,789-5,734
Cash from Financing Activity -164-2,5402,32164-7,070-1,464-1,731
Net Cash Flow2,433-2,680-802666,864-4,0721,370

Hindustan Aeronautics Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-4.00763.00-683.00-3.00-78.002.00-902.000.00-1.00-48.00-44.00-45.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Hindustan Aeronautics Ltd Free Cash Flow Chart

Hindustan Aeronautics Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1401661451058613322719190696455
Inventory Days8029711,1181,017854838882815602608527436
Days Payable92901019162691131647696116113
Cash Conversion Cycle8501,0461,1621,032878902996843617581475379
Working Capital Days-152-52-22-593117295286146111383
ROCE %28%25%20%23%29%27%29%24%26%30%31%

Hindustan Aeronautics Ltd Financial Efficiency Indicators Chart

Hindustan Aeronautics Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters75.15%75.15%75.15%75.15%75.15%75.15%75.15%71.65%71.64%71.64%71.64%71.64%
FIIs0.98%2.29%3.15%4.37%5.56%6.85%7.14%9.07%11.90%12.63%12.93%12.42%
DIIs20.54%5.40%18.25%17.00%15.71%13.48%12.72%13.93%10.64%9.72%9.13%9.58%
Public3.33%17.16%3.45%3.48%3.58%4.53%4.98%5.34%5.81%6.02%6.28%6.36%
No. of Shareholders2,01,7911,87,5812,07,0182,18,1162,38,7163,00,1753,21,2463,58,3174,20,6944,91,9696,19,1517,14,091

Hindustan Aeronautics Ltd Shareholding Pattern Chart

No. of Hindustan Aeronautics Ltd Shareholders

Hindustan Aeronautics Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Flexi Cap Fund - Regular Plan8,200,0005.162459.511,400,0002024-06-21485.71%
HDFC Mid-Cap Opportunities Fund - Regular Plan4,086,3552.081225.661,400,0002024-06-21191.88%
HDFC ELSS Tax Saver Fund2,400,0005.36719.861,400,0002024-06-2171.43%
HDFC Balanced Advantage Fund - Regular Plan2,165,9210.84649.651,400,0002024-06-2154.71%
Kotak Equity Arbitrage Fund - Regular Plan1,692,9001.41507.771,400,0002024-06-2120.92%
Nippon India Small Cap Fund1,477,0760.97443.031,400,0002024-06-215.51%
HDFC Focused 30 Fund - Regular Plan1,400,0004.51419.921,400,0002024-06-210%
HDFC Top 100 Fund - Regular Plan1,161,9401.12348.511,400,0002024-06-21-17%
Tata Equity P/E Fund - Regular Plan1,004,0004.2301.141,400,0002024-06-21-28.29%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%1,004,0004.2301.141,400,0002024-06-21-28.29%

Hindustan Aeronautics Ltd ROCE Trend

Hindustan Aeronautics Ltd EPS Trend

Hindustan Aeronautics Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)113.95174.28151.9296.8785.92
Diluted EPS (Rs.)113.95174.28151.9296.8785.92
Cash EPS (Rs.)134.60245.43190.41131.96115.57
Book Value[Excl.RevalReserv]/Share (Rs.)435.75705.04577.67461.02396.04
Book Value[Incl.RevalReserv]/Share (Rs.)435.75705.04577.67461.02396.04
Revenue From Operations / Share (Rs.)454.28805.27736.27680.48641.11
PBDIT / Share (Rs.)174.01267.55196.47170.69155.21
PBIT / Share (Rs.)152.97196.32157.99135.45125.35
PBT / Share (Rs.)152.49194.58156.25127.76118.48
Net Profit / Share (Rs.)113.56174.19151.9296.7285.71
NP After MI And SOA / Share (Rs.)113.95174.28151.9296.8885.92
PBDIT Margin (%)38.3033.2226.6825.0824.20
PBIT Margin (%)33.6724.3721.4519.9019.55
PBT Margin (%)33.5624.1621.2218.7718.48
Net Profit Margin (%)24.9921.6320.6314.2113.36
NP After MI And SOA Margin (%)25.0821.6420.6314.2313.40
Return on Networth / Equity (%)26.1524.7226.3021.0121.70
Return on Capital Employeed (%)24.4918.0415.8317.1318.83
Return On Assets (%)9.758.678.696.235.39
Total Debt / Equity (X)0.000.000.000.000.43
Asset Turnover Ratio (%)0.410.420.440.430.41
Current Ratio (X)1.731.681.801.571.33
Quick Ratio (X)1.371.291.220.920.70
Inventory Turnover Ratio (X)0.970.750.560.430.41
Dividend Payout Ratio (NP) (%)0.0028.6826.3230.9638.69
Dividend Payout Ratio (CP) (%)0.0020.3621.0022.7028.71
Earning Retention Ratio (%)0.0071.3273.6869.0461.31
Cash Earning Retention Ratio (%)0.0079.6479.0077.3071.29
Interest Coverage Ratio (X)362.43154.33112.8922.0214.89
Interest Coverage Ratio (Post Tax) (X)237.51101.4888.2913.478.88
Enterprise Value (Cr.)196091.8670983.9635383.1726102.4223284.25
EV / Net Operating Revenue (X)6.452.641.441.151.09
EV / EBITDA (X)16.857.935.394.574.49
MarketCap / Net Operating Revenue (X)7.323.392.021.460.83
Retention Ratios (%)0.0071.3173.6769.0361.30
Price / BV (X)7.643.872.572.161.35
Price / Net Operating Revenue (X)7.323.392.021.460.83
EarningsYield0.030.060.100.090.16

Hindustan Aeronautics Ltd Profitability Ratios (%)

Hindustan Aeronautics Ltd Liquidity Ratios

Hindustan Aeronautics Ltd Liquidity Ratios (%)

Hindustan Aeronautics Ltd Interest Coverage Ratios (%)

Hindustan Aeronautics Ltd Valuation Ratios

Fair Value

Fair Value: 5,737.13

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 10.95% compared to the current price 5171

Intrinsic Value: 6,693.64

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 29.45% compared to the current price ₹5171

Last 5 Year EPS CAGR: 16.67%

*Investments are subject to market risks

Strength and Weakness of Hindustan Aeronautics Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 24.33%, which is a positive sign.
  2. The company has higher reserves (14,907.08 cr) compared to borrowings (995.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (19.23 cr) and profit (3.77 cr) over the years.
  1. The stock has a high average Working Capital Days of 71.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 543.67, which may not be favorable.

Should I Buy Hindustan Aeronautics Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Aeronautics Ltd:
    1. Net Profit Margin: 24.99%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.49% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 26.15% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 237.51
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.37
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 45.5 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Hindustan Aeronautics Ltd?

The latest fair value of Hindustan Aeronautics Ltd is ₹5737.13.

What is the Market Cap of Hindustan Aeronautics Ltd?

The Market Cap of Hindustan Aeronautics Ltd is 3,45,793 Cr..

What is the current Stock Price of Hindustan Aeronautics Ltd as on 23 June 2024?

The current stock price of Hindustan Aeronautics Ltd as on 23 June 2024 is ₹5,171.

What is the High / Low of Hindustan Aeronautics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Aeronautics Ltd stocks is 5,586/1,768.

What is the Stock P/E of Hindustan Aeronautics Ltd?

The Stock P/E of Hindustan Aeronautics Ltd is 45.5.

What is the Book Value of Hindustan Aeronautics Ltd?

The Book Value of Hindustan Aeronautics Ltd is 434.

What is the Dividend Yield of Hindustan Aeronautics Ltd?

The Dividend Yield of Hindustan Aeronautics Ltd is 0.53 %.

What is the ROCE of Hindustan Aeronautics Ltd?

The ROCE of Hindustan Aeronautics Ltd is 38.9 %.

What is the ROE of Hindustan Aeronautics Ltd?

The ROE of Hindustan Aeronautics Ltd is 28.9 %.

What is the Face Value of Hindustan Aeronautics Ltd?

The Face Value of Hindustan Aeronautics Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Aeronautics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE