Hindustan Aeronautics Intrinsic Value
HAL • Aerospace & Defense
Current Stock Price
₹3796.20
Primary Intrinsic Value
₹1198.08
Market Cap
₹1267.9K Cr
-68.4%
Downside
Median Value
₹1198.08
Value Range
₹1047 - ₹3792
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%
HAL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1198.08 | ₹958.46 - ₹1437.70 | -68.4% | EPS: ₹99.84, Sector P/E: 12x |
| Book Value Method | asset | ₹1047.46 | ₹942.71 - ₹1152.21 | -72.4% | Book Value/Share: ₹1047.46, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1138.86 | ₹1024.97 - ₹1252.75 | -70.0% | Revenue/Share: ₹901.08, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1762.63 | ₹1586.37 - ₹1938.89 | -53.6% | EBITDA: ₹9812.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹3792.46 | ₹3033.97 - ₹4550.95 | -0.1% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1138.86 | ₹1024.97 - ₹1252.75 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1138.86 | ₹1024.97 - ₹1252.75 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹2798.32 | ₹2518.49 - ₹3078.15 | -26.3% | ROE: 19.1%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹1533.95 | ₹1380.56 - ₹1687.35 | -59.6% | EPS: ₹99.84, BVPS: ₹1047.46 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
HAL Intrinsic Value Analysis
What is the intrinsic value of HAL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Hindustan Aeronautics (HAL) is ₹1198.08 (median value). With the current market price of ₹3796.20, this represents a -68.4% variance from our estimated fair value.
The valuation range spans from ₹1047.46 to ₹3792.46, indicating ₹1047.46 - ₹3792.46.
Is HAL undervalued or overvalued?
Based on our multi-method analysis, Hindustan Aeronautics (HAL) appears to be trading above calculated value by approximately 68.4%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 3.31 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 19.1% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 24.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.28x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Hindustan Aeronautics
Additional stock information and data for HAL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹13,644 Cr | ₹8,259 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹8,223 Cr | ₹5,018 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹8,830 Cr | ₹5,966 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹10,173 Cr | ₹3,781 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹15,117 Cr | ₹14,527 Cr | Positive Free Cash Flow | 8/10 |