defense
Hindustan Aeronautics
HAL · Nifty 50
₹4,460.5
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Hindustan Aeronautics scores 85/100 on fundamentals (strong). Hindustan Aeronautics: BROAD EXPANSION 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 of 27.6% × asset turnover of 0.25x × leverage of 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
Hindustan Aeronautics is compared against 7 peers in the defense sector.
Key Watchpoints
Breaks above ₹4684 (+5%)
Trend reversal confirmation
Breaks below ₹4237 (-5%)
Further downside risk
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