Hindustan Aeronautics Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Hindustan Aeronautics Ltd trades at ₹4,905, in a confirmed uptrend and 10 weeks into that stage. That is +8.8% against its own 200-day average. It sits at 91% of a 52-week range of ₹3,589 to ₹5,030. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 10 straight weeks.

Today the stock is in a confirmed uptrend — week 10 of stage 2, confirmed. At ₹4,905 it trades +8.8% versus its 200-day average and sits at 91% of its 52-week range (₹3,589–₹5,030).

Against the market, two honest reads. Cumulative: over the last 8.5 years the stock moved +766% while the NIFTY 500 moved +155% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 10 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Hindustan Aeronautics Ltd trades at 35.2× P/E, at the pricey end of its own range (86th percentile). Its long-run median P/E is 14.4×, measured across 8.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 35.2× is at the pricey end of its own range (86th percentile), against a long-run median of 14.4× measured over 8.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +9.0% against a +3.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +48.2%/yr price move, ~+23.2%/yr came from earnings growth and ~+25.0 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Hindustan Aeronautics Ltd was paying for profit growth of about 17.8% a year. Profit itself has compounded 16.4% a year over the past 10 years. Today the market pays 35.2× P/E, the 86th percentile of its own 9-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Hindustan Aeronautics Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 16.6% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

52.3/100 — rank 11 of 25 in Aerospace & Defence - Equipments · 100% evidence confidence

Hindustan Aeronautics Ltd scores 52.3 out of 100 against the 25 companies it is compared with in Aerospace & Defence - Equipments, ranking 11. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 13.9 + 20.4 + 8.2 + 9.8 = 52.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Hindustan Aeronautics Ltd reported ₹5,515 Cr of revenue in the Jun 26 quarter, +14.4% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.0% a year. The last full year, FY26, came in at ₹33,089 Cr. The last four reported quarters add to ₹33,785 Cr.

FY26 revenue came in at ₹33,089 Cr (+6.8% on the year), capping 10 years at 7.0% compound. The latest quarter (Jun 26) printed ₹5,515 Cr, +14.4% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.5% growth against the decade's 7.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +7.4% over the last 4 quarters against +4.7%/yr over the last 8 — stabilising; TTM profit +12.2% vs +6.3%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Hindustan Aeronautics Ltd's operating margin is 28.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 15.0% to 32.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 28.0%, +1.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 15.0%–32.0%.

Why the margin moved: operating margin went +1.1 pp year on year while gross margin went −2.8 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Hindustan Aeronautics Ltd earned ₹1,590 Cr of net profit in the Jun 26 quarter, +14.9% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹9,116 Cr. The 10-year compound rate is 16.4%. That is 28.8% of the quarter's revenue. The same quarter a year earlier earned ₹1,384 Cr.

Jun 26 profit was ₹1,590 Cr, +14.9% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹9,116 Cr (+9.0%), and the 10-year compound rate is 16.4%.

Why profit moved: revenue contributed +14.4% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +15.2% vs revenue +9.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 131% of Hindustan Aeronautics Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹10,906 Cr of operating cash against ₹9,116 Cr of profit. After ₹2,192 Cr of capital spending, ₹8,714 Cr was left as free cash.

FY26: operating cash of ₹10,906 Cr against reported profit of ₹9,116 Cr, leaving free cash of ₹8,714 Cr after ₹2,192 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 131% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 131%: the cash cycle stretched 168 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Hindustan Aeronautics Ltd's cash conversion cycle runs 788 days in FY26, up from 620 days in FY21. Capital spending ran ₹5,989 Cr over the last 3 years. At FY26 sales of ₹33,089 Cr each day of that cycle holds about ₹90.7 Cr, so roughly ₹71,436 Cr sits inside the business at any moment.

FY26: debtors at 45 days, inventory at 859 days — roughly 28.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 788 days, looser than FY21's 620.

The full loop: cash goes out to suppliers and production on day 0; stock waits 859 days to sell; customers pay about 45 days after that; and suppliers themselves are paid at 116 days — netting out to the 788-day cycle.

In money terms: at FY26 sales of ₹33,089 Cr, each day of the cycle holds about ₹90.7 Cr — so the 788-day loop keeps roughly ₹71,436 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹5,989 Cr over the last 3 fiscal years against ₹4,102 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹3,313 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Hindustan Aeronautics Ltd earns a ROCE of 32% in FY26. That is up from a trough of 23% in FY16. Return on invested capital clears the cost of that capital by −0.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 27.5% net margin on 0.25× asset turns.

FY26 ROCE is 32%, recovered from a FY16 trough of 23% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 27.5% net margin × 0.25× asset turns × 3.27× balance-sheet leverage ≈ 22.5% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 11.4% − 12.0% = a −0.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Hindustan Aeronautics Ltd carries total debt of ₹66.0 Cr against shareholder equity of ₹41,045 Cr as of Jun 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.00 in FY22 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹66.0 Cr against shareholder equity of ₹41,045 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.00 (FY22) to 0.00 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 3.1 points of Hindustan Aeronautics Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 11.9% of the company. Foreign institutions moved −2.3 points over the same window, to 9.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.1 points over 8 quarters to 11.9%; Foreign institutions: −2.3 points over 8 quarters to 9.3%; Promoters: +0.0 points over 8 quarters to 71.6%.

Why the register moved: rotation — foreign institutions −2.3 points against domestic institutions +3.1 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Hindustan Aeronautics Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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