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Hindustan Aeronautics Ltd logo

Hindustan Aeronautics Ltd

NSE: HAL BSE: 541154

4376.90

(-5.25)%

Sun, 01 Feb 2026, 04:32 pm

Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (4.3x coverage).
  • Hindustan Aeronautics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Hindustan Aeronautics's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividend payments have increased, but Hindustan Aeronautics only paid a dividend in the past 2 years.
  • Whilst dividend payments have been stable, Hindustan Aeronautics has been paying a dividend for less than 10 years.

health

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Pros

  • Hindustan Aeronautics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hindustan Aeronautics is profitable, therefore cash runway is not a concern.
  • Hindustan Aeronautics is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (44.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 25.7x debt.
  • Hindustan Aeronautics's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 27.9x coverage).
  • Hindustan Aeronautics's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (1.1% vs 12.7% today).
  • High level of physical assets or inventory.

management

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Pros

  • R.'s remuneration is lower than average for companies of similar size in India.
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Cons

  • The average tenure for the Hindustan Aeronautics board of directors is less than 3 years, this suggests a new board.
  • The average tenure for the Hindustan Aeronautics management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Hindustan Aeronautics is not covered by any analysts.
    • Hindustan Aeronautics has significant price volatility in the past 3 months.

    past

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    Pros

    • Hindustan Aeronautics's 1-year earnings growth exceeds its 5-year average (52.7% vs 11.5%)
    • Hindustan Aeronautics's year on year earnings growth rate has been positive over the past 5 years.
    • Hindustan Aeronautics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Hindustan Aeronautics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
    • Hindustan Aeronautics's earnings growth has exceeded the IN Aerospace & Defense industry average in the past year (52.7% vs 50.6%).
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    Cons

    • Hindustan Aeronautics used its assets less efficiently than the IN Aerospace & Defense industry average last year based on Return on Assets.

    value

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    Pros

    • Hindustan Aeronautics is good value based on earnings compared to the IN Aerospace & Defense industry average.
    • Hindustan Aeronautics is good value based on earnings compared to the India market.
    • HAL outperformed the Aerospace & Defense industry which returned -18.7% over the past year.
    • HAL outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:HAL is up 36.3% outperforming the Aerospace & Defense industry which returned 14.2% over the past month.
    • NSEI:HAL is up 36.3% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Hindustan Aeronautics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Hindustan Aeronautics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Hindustan Aeronautics is overvalued based on assets compared to the IN Aerospace & Defense industry average.

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