🪞At a Glance
HAL is no longer the lazy uncle of PSUs. It’s the crowned jewel of India’s defense manufacturing push, with ₹8,364 Cr profit, 30%+ OPM, 26% ROE, and a record ₹1.25 lakh Cr order book. In a world of war, HAL is peace… of your portfolio.
🧠 TL;DR
| 📊 Metric | FY25 | Growth Since FY20 |
|---|---|---|
| Revenue | ₹30,981 Cr | 🔼 44% |
| Net Profit | ₹8,364 Cr | 🔼 190% |
| EPS | ₹125.07 | 🔼 2.9x |
| ROE | 26.1% | ⏫ Stable at Highs |
| Promoter Holding | 71.64% | ⬇️ Dropped 3.5% |
| Cash from Ops | ₹13,643 Cr | 💰 Massive |
| Order Book | ₹1.25 lakh Cr+ | 🔥🔥🔥 |
1️⃣ The HAL-Of-Fame Performance
- In FY20, HAL posted ₹2,883 Cr profit.
- FY25? ₹8,364 Cr — almost 3x in 5 years.
- 5Y profit CAGR: 24.5%, best among PSUs.
- No fancy iPhones or retail dreams here. Just good ol’ fighter jets, helicopters, and defence contracts.
2️⃣ Sales May Look “Slow” — But That’s Just How Defence Works
- 5Y sales CAGR = 7.6%.
Not exciting? Sure.
But margins make up for it:- FY20 OPM: 23%
- FY25 OPM: 31%
- Operating leverage and larger contracts have started kicking in. Even with seasonal lumpiness, every March quarter is a Diwali dhamaka.
3️⃣ Order Book = Moat
- 🔥 Latest order win: ₹1.25 lakh Cr (as per May 2025 concall).
- ISRO’s SSLV tech transfer also adds new growth angle: HAL may soon build rockets.
- FY26-28 capex plan? ₹14,000–15,000 Cr — already announced and funded.
4️⃣ Balance Sheet is Cleaner Than a Stealth Jet
- Borrowings? Just ₹1 Cr 🤯
- Net cash + reserves: ₹34,647 Cr
- Operating Cash Flow in FY25: ₹13,643 Cr
- No PSU gimmicks, no delayed subsidies. HAL collects cash before even delivering planes.
5️⃣ PSU Shareholding Drama
- Promoter (Govt of India): From 75.15% → 71.64%
- FII stake doubled from 6% to 12% over 3 years 💸
- Public shareholding nearly tripled as retail investors rush in
🎯 13.5 lakh shareholders now – HAL is the new LIC in town.
6️⃣ HAL vs Peers: It’s Not Even Close
| 🛡️ Company | P/E | ROE | OPM | Growth |
|---|---|---|---|---|
| HAL | 38.4x | 26.1% | 31% | Profit ↑ 3x |
| BEL | 55.7x | 29.3% | 28.7% | Steady |
| BDL | 121x | 14.4% | 14% | Volatile |
| Zen | 61x | 26% | 38% | Small base |
| GRSE | 65x | 28.1% | 8.3% | Cyclical |
HAL has premium earnings, but they’re backed by execution — unlike some of its hype-heavy, margin-light peers.
7️⃣ Fair Value Range 🔍
EduInvesting FV Estimate (FY26E)
- Est. EPS FY26: ₹145
- P/E band: 25x (defensive PSU) to 42x (bullish PSU rerating)
🎯 FV Range = ₹3,625 – ₹6,090
➡️ Current Price = ₹4,793
➡️ Stock is in fair zone, but closer to the top end.
If market corrects or rerating slows down, buying closer to ₹4,000 looks safer. But long-term trend? Still skyward.
💬 Final Verdict: This PSU Prints Profits (Not Just Posters)
HAL is India’s real-life Iron Man suit factory — it makes the toys the Army actually uses.
It has scale, margins, zero debt, and a 5-year profit CAGR that even tech companies would envy.
If you’re okay with seasonal revenue, a slightly rich valuation, and a “govt stake overhang” risk — HAL remains one of the cleanest, leanest PSUs on the bourse.
✍️ Written by Prashant | 📅 June 26, 2025
Tags: HAL, Defence Stocks, PSU Multibagger, Hindustan Aeronautics, Nifty CPSE, Fighter Jet, EduInvesting 5-Year Recap, Dividend PSU, Order Book Growth
