defense · HAL
Hindustan Aeronautics
Hindustan Aeronautics: PE below historical average. NARROW LEADERSHIP regime.
Price
₹4,581.4
Price 2026-07-30
5 day
+0.17%
Short-term move
1 month
+4.57%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹294.3k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Hindustan Aeronautics (HAL) in the defense sector?”
Price chart
₹4,600
-4.43% over period
About Hindustan Aeronautics
Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India and internationally. The company offers basic trainer and light combat aircraft, light transport aircraft, intermediate jet trainer aircraft, light utility and combat helicopters, maritime utility helicopters, and turbofan and turboshaft engines, as well as aerospace products, which include aluminum alloy riveted structures, propellant tanks, and cryogenic engines. It also provides avionics, accessories, and materials comprising flight data recorders, laser range systems, head up displays, auto stabilizers, inertial navigation systems, hydraulic pumps, fuel management systems, oxygen systems, gyroscopic/barometric instruments, panel instruments, ejector release units, flight control systems, wheels and brake systems, ground radars, radar computers, missile inertial navigation solutions, air borne secondary radars, radio navigation equipment, communication equipment, rolled rings, rubber products, powder metallurgy, forgings, and castings. In addition, the company of...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -9.6% over 14 days) — not a reliable pattern.
52-week position
Trading at 90.5% of 52-week high
Technicals
RSI 14
59.3
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
32.3
43th pct · 7 quarterly points (limited history)
P/B
7.2
ROE
24.0%
Strong profitability — 24.0% return on equity
Market cap
₹294.3k Cr
Revenue growth
180.0% YoY
Promoter
71.6%
52-week range
₹3,479.1 – ₹5,065
90.5% of high
RSI (14)
59.3
uptrend
vs 50 DMA
Above
DMA ₹4,399.76
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Hindustan Aeronautics scores 85/100 on fundamentals (strong). Hindustan Aeronautics: PE below historical average. NARROW LEADERSHIP regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 22.2% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 22.21% is strong margin-driven and stable. Net margin 27.6%, asset turnover 0.25x, leverage 3.2x.
What This Means
Net margin of 27.6% means the company keeps ₹27.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.25x means the company generates ₹0.25 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 3.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
35.8%
Operating
36.7%
Net
27.6%
Gross margin 35.8% → operating margin 36.7% → net margin 27.6%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 2099.8x — very comfortable. Debt service is not a concern.
Free Cash Flow
MODERATEFCF margin at 25.3% — strong cash generation. Business is self-funding.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| BEL Bharat Electronics | ₹384.9 | -5.0% | 50.5 | 27.6% | 1170% | ₹3.1L Cr |
| MAZDOCK Mazagon Dock Shipbuilders | ₹2,319.1 | +0.9% | 39.4 | 28.8% | 2130% | ₹1.0L Cr |
| BDL Bharat Dynamics | ₹1,245.9 | +0.5% | 122.2 | 10.2% | -7300% | ₹51.2k Cr |
| COCHINSHIP Cochin Shipyard | ₹1,402.1 | +0.5% | 53 | 12.5% | -1560% | ₹38.0k Cr |
| GRSE Garden Reach Shipbuilders | ₹2,586.2 | +0.5% | 44.9 | 31.8% | 2910% | ₹30.9k Cr |
| DATAPATTNS Data Patterns | ₹4,462 | -2.7% | 90.7 | 16.7% | -1300% | ₹24.6k Cr |
| ZENTEC Zen Technologies | ₹1,615.4 | -10.3% | 86.7 | 11.8% | -4520% | ₹16.8k Cr |
| HAL Hindustan Aeronautics | ₹4,581.4 | -0.2% | 32.3 | 24% | 180% | ₹2.9L Cr |
Key Watchpoints
Breaks above ₹4810 (+5%)
Trend reversal confirmation
Breaks below ₹4352 (-5%)
Further downside risk
PE reverts to median of 32.3 (7 quarterly points (limited history))
Valuation normalization
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
