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Hindustan Aeronautics Limited (IN:HAL)
:HAL
India Market
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Hindustan Aeronautics Limited (HAL) AI Stock Analysis

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IN:HAL

Hindustan Aeronautics Limited

(HAL)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
₹5,619.00
▲(22.98% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial performance (high profitability, very low leverage, and solid cash generation), supported by a constructive technical trend with positive momentum indicators. The biggest offset is valuation, with a high P/E and only a modest dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide durable financial flexibility for a capital‑intensive aerospace business. This supports multi‑year program delivery, absorbs procurement timing shocks, enables investment in indigenization, and lowers refinancing risk.
Negative Factors
Recent margin pressure
A sharp gross profit decline in the most recent year despite higher revenue suggests cost inflation, adverse mix or contract pricing stress. If persistent, it can erode free cash flow and returns, constraining reinvestment and making margins more vulnerable to program cost overruns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide durable financial flexibility for a capital‑intensive aerospace business. This supports multi‑year program delivery, absorbs procurement timing shocks, enables investment in indigenization, and lowers refinancing risk.
Read all positive factors

Hindustan Aeronautics Limited (HAL) vs. iShares MSCI India ETF (INDA)

Hindustan Aeronautics Limited Business Overview & Revenue Model

Company Description
Hindustan Aeronautics Limited (HAL) is a leading aerospace enterprise engaged in the full spectrum of activities, from the conceptualization and production of aviation assets to their comprehensive maintenance, modernization, and support. Operatin...
How the Company Makes Money
HAL makes money primarily by contracting with government defence customers (and, to a lesser extent, other customers) across the full aircraft and aerospace lifecycle—design and development, series manufacturing, and long-term product support. Key...

Hindustan Aeronautics Limited Financial Statement Overview

Summary
Strong overall fundamentals supported by consistent multi-year revenue growth, materially improved profitability through 2025, and robust cash generation with high cash conversion. Key risk flag is apparent margin pressure in the latest year, with a sharp drop in gross profit versus 2025 despite higher revenue, and some year-to-year free cash flow volatility.
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue330.89B309.81B303.81B269.27B246.20B
Gross Profit101.76B179.27B185.38B160.13B140.40B
EBITDA135.13B79.94B82.88B52.87B44.06B
Net Income91.16B83.64B76.21B58.28B50.80B
Balance Sheet
Total Assets1.32T1.06T780.95B672.04B583.92B
Cash, Cash Equivalents and Short-Term Investments461.96B381.82B264.31B203.03B143.47B
Total Debt109.70M11.60M11.00M516.90M492.70M
Total Liabilities913.70B712.82B489.53B436.28B390.75B
Stockholders Equity410.41B349.82B291.38B235.72B193.13B
Cash Flow
Free Cash Flow124.66B127.13B73.06B70.48B85.32B
Operating Cash Flow139.51B136.43B82.23B88.30B100.33B
Investing Cash Flow-113.87B-107.71B-64.10B-57.28B-127.60B
Financing Cash Flow-33.45B-25.79B-19.99B-17.31B-13.49B

Hindustan Aeronautics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4569.15
Price Trends
50DMA
4503.59
Positive
100DMA
4360.60
Positive
200DMA
4347.37
Positive
Market Momentum
MACD
134.73
Negative
RSI
76.98
Negative
STOCH
80.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAL, the sentiment is Positive. The current price of 4569.15 is below the 20-day moving average (MA) of 4707.58, above the 50-day MA of 4503.59, and above the 200-day MA of 4347.37, indicating a bullish trend. The MACD of 134.73 indicates Negative momentum. The RSI at 76.98 is Negative, neither overbought nor oversold. The STOCH value of 80.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HAL.

Hindustan Aeronautics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₹3.35T36.091.09%7.42%12.16%
70
Outperform
₹249.31B93.120.23%33.81%24.90%
67
Neutral
₹3.00T48.900.70%19.83%11.75%
67
Neutral
₹111.06B117.530.04%36.61%47.68%
60
Neutral
₹145.87B113.740.09%69.08%59.15%
56
Neutral
₹512.82B121.880.41%-18.69%-7.12%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:HAL
Hindustan Aeronautics Limited
5,015.50
564.93
12.69%
IN:APOLLO
Apollo Micro Systems Ltd.
392.55
196.81
100.55%
IN:BDL
Bharat Dynamics Ltd.
1,399.00
-201.40
-12.58%
IN:BEL
Bharat Electronics Limited
410.40
30.09
7.91%
IN:DATAPATTNS
Data Patterns (India) Limited
4,453.25
1,868.73
72.30%
IN:PARAS
Paras Defence & Space Technologies Ltd.
1,378.10
702.20
103.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 15, 2026