Hindustan Aeronautics

NSEI:HAL

SNOWFLAKE DESCRIPTION
Adequate balance sheet with proven track record.


COMPANY DESCRIPTION
Hindustan Aeronautics Limited designs, develops, manufactures, sells, repairs, and overhauls aircraft and related systems
in India. The last earnings update was 42 days ago. More info.
HAL SHARE PRICE AND EVENTS

7 DAY RETURNS  1 YEAR RETURNS

-4.5% -3.5% -0.4% -17.7% -10% 0.5%

NSEI:HAL IN AEROSPACE & IN MARKET NSEI:HAL IN AEROSPACE & IN MARKET
DEFENSE DEFENSE

HAL SHAREHOLDER RETURN 1 YEAR RETURN VS INDUSTRY AND MARKET

  7 Day 30 90 1 Year 3 5 HAL underperformed the Aerospace & Defense
Day Day Year Year industry which returned -10% over the past year.
Hindustan -4.5% -5.2% -5.3% -17.7% - -
HAL underperformed the Market in India which
Aeronautics (HAL)
returned 0.5% over the past year.
IN Aerospace & -3.5% -0.2% 6% -10% -3% 14.3%
Defense
IN Market -0.4% -1.2% -0.9% 0.5% 27.8% 42.6%
PRICE VOLATILITY

 
Industry

5YR VOLATILITY VS MARKET

RELATED COMPANIES

Boeing Honeywell International

NYSE:BA NYSE:HON

Lockheed Martin
NYSE:LMT
HAL VALUE
 Is Hindustan Aeronautics undervalued based on future cash flows and its price relative to the stock market?

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS 

It is not possible to calculate the future cash flow value for Hindustan Aeronautics. This is due to cash
flow or dividend data being unavailable. The share price is ₹676.6.
PRICE RELATIVE TO MARKET 

PRICE BASED ON PAST EARNINGS PRICE BASED ON EXPECTED GROWTH

30x 2x

60x
0x

0x

4x
PE 10.0x
Aerospace & Defense Market
-
PEG x

HAL HAL

 Raw Data  Raw Data

Hindustan Aeronautics is good value based Unable to calculate PEG ratio for Hindustan
on earnings compared to the IN Aerospace & Aeronautics, we can't assess if its growth is good
Defense industry average. value.

Hindustan Aeronautics is good value based

on earnings compared to the India market.

PRICE BASED ON VALUE OF ASSETS

10x
20x
0x

PB 2.1x
Aerospace & Defense Market
HAL

 Raw Data

Hindustan Aeronautics is overvalued based

on assets compared to the IN Aerospace &
Defense industry average.
HAL FUTURE PERFORMANCE
 How is Hindustan Aeronautics expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

No analysts cover Hindustan Aeronautics, future earnings growth has been estimated based on
fundamentals.

-4.7%
EARNINGS GROWTH VS LOW RISK SAVINGS 

Hindustan Aeronautics's earnings are

expected to decrease over the next 1-3 years,
this is below the low risk savings rate of 7.6%.

GROWTH VS MARKET CHECKS 

Expected annual
growth in Hindustan Aeronautics's earnings are
earnings. expected to decrease over the next 1-3 years,
this is below the India market average.
Unable to compare Hindustan Aeronautics's
revenue growth to the India market average as
no estimate data is available.

ANNUAL GROWTH RATES COMPARISON

Hindustan Aeronautics Aerospace & Defense Market Low risk savings

17.0%
5.5%
0.5%

-4.7%
Earnings Growth Revenue Growth
 Raw Data
ANALYSTS GROWTH EXPECTATIONS
₹250B

INR

Actual

₹0
2016 2017 2018 2019 2020 2021 2022 2023

Revenue Cash Flow Earnings

 Raw Data

HIGH GROWTH CHECKS 

Hindustan Aeronautics's earnings are expected to decrease over the next 1-3 years, this is not
considered high growth.
Unable to determine if Hindustan Aeronautics is high growth as no revenue estimate data is available.
PAST AND FUTURE EARNINGS PER SHARE
₹80

Sun Mar 31 20
Historical (Ann
INR

₹40
2016 2017 2018 2019

Historical Range of past estimates Analyst's Estimate Range of estimates

 Raw Data

PERFORMANCE IN 3 YEARS 

20.
0%
Unable to establish if Hindustan Aeronautics will
efficiently use shareholders’ funds in the future
without estimates of Return on Equity.
+3 years
0.0%

-%
Return
on Equity
Aerospace & Defense Hindustan Aeronautics
HAL PAST PERFORMANCE
  How has Hindustan Aeronautics performed over the past 5 years?

PAST EARNINGS GROWTH PAST EARNINGS GROWTH ANALYSIS 

Hindustan Aeronautics's year on year

Hindustan Aeronautics Aerospace & Defense Market
earnings growth rate has been positive over the
past 5 years.
29.2%
Hindustan Aeronautics's 1-year earnings
growth exceeds its 5-year average (9.2% vs 2.3%)
15.4% 16.6% 15.2%Aeronautics's earnings growth has
Hindustan
not exceeded the IN Aerospace & Defense
9.2% industry average in the past year (9.2% vs 29.2%).
2.3%
Past 5 years Last 1 year

EARNINGS AND REVENUE HISTORY

₹250B
INR

₹0
2014 2015 2016 2017 2018

Revenue Earnings Operating Expenses

 Raw Data
PERFORMANCE LAST YEAR 

21% 5% 11%
Return Return Return
on Equity on Assets on Capital
Aerospace & Defense
Hindustan Aeronautics

Hindustan Aeronautics has efficiently used shareholders’ funds last year (Return on Equity greater
than 20%).
Hindustan Aeronautics used its assets less efficiently than the IN Aerospace & Defense industry
average last year based on Return on Assets.
Hindustan Aeronautics has significantly improved its use of capital last year versus 3 years ago
(Return on Capital Employed).
HAL HEALTH
 How is Hindustan Aeronautics's financial health and their level of debt?

NET WORTH 

Short term Long term

Net worth
₹600B
INR

Net worth

₹0
2013 2014 2015 2016 2017 Liabilities
2018 2019 Assets
2

Hindustan Aeronautics is able to meet its short term (1 year) commitments with its holdings of cash
and other short term assets.
Hindustan Aeronautics's cash and other short term assets cover its long term commitments.

BALANCE SHEET
ASSETS LIABILITIES AND SHARES

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 9.5x debt.

HISTORICAL DEBT 

₹200B
INR

₹0
2014 2015 2016 2017 2018

Debt Net worth (Equity) Cash

 Raw Data

Hindustan Aeronautics's level of debt (38.3%) compared to net worth is satisfactory (less than
40%).
The level of debt compared to net worth has increased over the past 5 years (4.5% vs 38.3% today).
Operating cash flow is negative therefore debt is not well covered.
Interest payments on debt are well covered by earnings (EBIT is 14.8x coverage).
HAL DIVIDENDS
 What is Hindustan Aeronautics's current dividend yield, its reliability and sustainability?

ANNUAL DIVIDEND INCOME DIVIDEND AMOUNT 

2.93%
Hindustan Aeronautics's pays a higher
dividend yield than the bottom 25% of dividend
payers in India (0.55%).
Hindustan Aeronautics's dividend is above
the markets top 25% of dividend payers in India
(2.09%).

Current annual
income from
Hindustan
Aeronautics
dividends.

ANNUALIZED HISTORICAL AND FUTURE DIVIDENDS

6%

2.93%
2.97%

0.98%

0%
2019

HAL yield HAL annual DPS Aerospace & Defense Market

 Raw Data

It is too early to tell whether Hindustan Aeronautics has stable dividend payments.
Hindustan Aeronautics only just started paying a dividend, it is too early to tell if payments are
increasing.
CURRENT PAYOUT TO SHAREHOLDERS  FUTURE PAYOUT TO SHAREHOLDERS 

Paid to you

29% 0%
Now +3 yrs

Retained by
Hindustan Aeronautics

Dividends paid are well covered by earnings Insufficient estimate data to determine if a
(3.4x coverage). dividend will be paid in 3 years and that it will be
sustainable.
HAL MANAGEMENT
 What is the CEO of Hindustan Aeronautics's salary, the management and board of directors tenure and is there insider
trading?

Hindustan Aeronautics has no CEO, or we have no data on them.

MANAGEMENT TEAM TENURE BOARD OF DIRECTORS TENURE

Average tenure and age of the Hindustan Average tenure and age of the Hindustan
Aeronautics management team in years: Aeronautics board of directors in years:

1.8
AVERAGE TENURE
60
AVERAGE AGE
1.2
AVERAGE TENURE
58
AVERAGE AGE

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

MANAGEMENT TEAM BOARD OF DIRECTORS

Sunil Kumar G. Sesha Reddy Sunil Kumar V. Chamola

TITLE TITLE TITLE TITLE
Director of Operations & Compliance Officer & Director of Operations & Director of Human
Director Company Secretary Director Resources & Director
COMPENSATION COMPENSATION COMPENSATION COMPENSATION
₹5M ₹2M ₹5M ₹6M
AGE AGE AGE AGE
60 56 60 60
TENURE TENURE
1.8 yrs 8 yrs

V. Chamola Arun Sinha C.B. Jose Jacob

TITLE TITLE Ananthakrishnan TITLE
Director of Human General Manager of TITLE Executive Director of
Resources & Director Quality Assurance CFO, Director of Finance Human Resources
COMPENSATION COMPENSATION & Director
₹6M ₹100K AGE
AGE AGE 55
60 62 TENURE
TENURE 0.9 yrs
8 yrs
 Arup Chatterjee Dipali Khanna
C.B. S. Mittal TITLE TITLE

Ananthakrishnan TITLE Director of Engineering Non-Official Independent

TITLE General Manager of AGE Director
CFO, Director of Finance Business Development 57 COMPENSATION
& Director TENURE ₹340K
AGE 1.1 yrs AGE
55 67
TENURE TENURE
0.9 yrs 3.5 yrs

M. Anandan K. Chandrakanth Prem Kataria R. Pattanaik

TITLE TITLE TITLE TITLE
Chief Manager of Chief Manager for HR - Permanent Invitee Permanent Invitee
Vigilance Helicopter Division AGE
58
Unni Pillai K. Singh
TITLE TITLE Ravi Thodge Chandraker Bharti
Executive Director of Chief Designer of TITLE TITLE

CTP-RW Aircraft Research & Permanent Invitee Government Nominee

Design Centre Director
AGE
51
TENURE
1.2 yrs

WHO OWNS THIS COMPANY?

State
or Government

Individual Insiders General Public Institutions State or Government

RECENT INSIDER TRADING 

0-3 months

3-6 months

6-9 months

9-12 months

SOLD BOUGHT
Sold by companies Sold by individuals Bought by companies Bought by individual

No 3 month individual insider trading information.

RECENT INSIDER TRANSACTIONS

Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
HAL NEWS

SIMPLY WALL ST NEWS

Why Fundamental Investors Might Love Hindustan Aeronautics Limited (NSE:HAL)

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report
on Hindustan Aeronautics here. … NSEI:HAL Income Statement, July 3rd 2019 Next Steps: For Hindustan Aeronautics, I've
compiled three important factors you should look at: Future Outlook: What are well-informed industry analysts predicting
for HAL’s future growth? … Take a look at our free research report of analyst consensus for HAL’s outlook.

Simply Wall St - 5 days ago – Full article

A Closer Look At Hindustan Aeronautics Limited's (NSE:HAL) Impressive ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Hindustan Aeronautics: 21% =
₹23b ÷ ₹109b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that
equation, but 'shareholders' equity' requires further explanation. … Combining Hindustan Aeronautics's Debt And Its 21%
Return On Equity Although Hindustan Aeronautics does use debt, its debt to equity ratio of 0.38 is still low. … A company
that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St - 3 weeks ago – Full article

Does Hindustan Aeronautics Limited's (NSE:HAL) Past Performance Indicate A Stronger Future?
Check out our latest analysis for Hindustan Aeronautics Could HAL beat the long-term trend and outperform its industry?
… While Hindustan Aeronautics has a good historical track record with positive growth and profitability, there's no certainty
that this will extrapolate into the future. … You should continue to research Hindustan Aeronautics to get a more holistic
view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for HAL’s future
growth?
HAL COMPANY INFO
DESCRIPTION

Hindustan Aeronautics Limited designs, develops, manufactures, sells, repairs, and

overhauls aircraft and related systems in India. It offers aircraft; helicopters and power
plants; aerospace structures, tanks, and cryogenic engines; and materials, including
castings, general forgings, precision forgings, powder metallurgy products, rubber
products, composites, and rolled rings. The company also provides avionics, such as inertial navigation
systems, auto stabilizers, head up displays, laser range systems, flight data recorders, communication
equipment, radio navigation equipment, air borne secondary radars, missile inertial navigation
systems, radar computers, and ground radars; and system and accessories comprising hydraulic
systems, wheels and brake systems, flight control systems, ejector release units, panel instruments,
gyroscopic/barometric instruments, oxygen systems, fuel management systems, and hydraulic pumps.
In addition, it offers various services in the areas of aircraft and helicopters MRO, and power plants, as
well as systems, accessories, and avionics. The company also exports its products. It serves space,
defense, and civil markets. Hindustan Aeronautics Limited was incorporated in 1940 and is based in
Bengaluru, India.

DETAILS
Name: Hindustan Aeronautics Limited
Ticker: HAL
Exchange: NSEI
Founded: 1940
Market Cap: ₹232,449,470,625
Shares outstanding: 334,387,500
Website: http://www.hal-india.co.in
Address: Hindustan Aeronautics Limited
15/1, Cubbon Road,
Bengaluru,
Karnataka, 560 001,
India

LISTINGS
Exchange Ticker Security Exchange Country Currency Listed on
Symbol Symbol
 NSEI HAL Equity National Stock Exchange of IN INR 28. Mar
Shares India 2018
 BSE 541154 Equity Mumbai Stock Exchange IN INR 28. Mar
Shares 2018
NUMBER OF EMPLOYEES CURRENT STAFF
40,000

0 Hindustan
Aeronautics
employees.

2014 2015 2016 2017

Employees

INDUSTRY COMPANY ANALYSIS AND FINANCIAL DATA STATUS

Industry: Aerospace and Defense Area Date (UTC time)
Sector: Capital Goods Company Analysis updated: 2019/07/08 12:54
End of day share price update: 2019/07/08 00:00
Last estimates confirmation: 2018/05/30
Last earnings filing: 2019/05/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31

All dates and times in UTC. All financial data

provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a

yearly period but updated quarterly. This is
known as Trailing Twelve Month (TTM) or Last
Twelve Month (LTM) Data. Learn more here.