HAL’s Altitude Continues to Rise: What the Last 3 Years Say About Its Future Trajectory
As Hindustan Aeronautics Ltd (HAL) prepares to announce its Q4 FY25 results, a closer look at its last 3 years' performance reveals strong fundamentals, surging profits, and bullish technicals that could propel the stock even higher.
HAL (Hindustan Aeronautics Ltd), India’s aerospace crown jewel, is gearing up for its Q4 FY25 results on May 14. Backed by an aggressive order book, strategic importance in defense, and sharp improvements in profitability, HAL has transformed itself into a serious wealth creator. Let’s decode how its fundamentals and technicals point to potential upside—and where it might go from here.
Fundamental Analysis
Three-Year Financial Snapshot (FY22–FY24 & TTM)
| Metric | FY22 | FY23 | FY24 | TTM |
|---|---|---|---|---|
| Sales (₹ Cr.) | 24,620 | 26,928 | 30,381 | 32,050 |
| Operating Profit (₹ Cr.) | 5,420 | 6,669 | 9,749 | 10,201 |
| Net Profit (₹ Cr.) | 5,086 | 5,811 | 7,595 | 8,651 |
| OPM (%) | 22% | 25% | 32% | 32% |
| EPS (₹) | 76.05 | 86.89 | 113.57 | 129.35 |
| ROCE (%) | 30% | 31% | 39% | - |
| ROE (%) | 28% (3Y Avg) | 29% (Latest) |
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Sales Growth (3Y CAGR): 10%
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Profit Growth (3Y CAGR): 33%
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Stock Price CAGR (3Y): 81%
Balance Sheet Strength
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Borrowings reduced to ₹0 crore, showing HAL is debt-free.
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Reserves climbed from ₹23,172 Cr (FY23) to ₹30,751 Cr (TTM).
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Consistent cash flow from operations, with ₹8,226 Cr in FY24.
Efficiency & Working Capital
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Debtor Days: Improved from 64 (FY23) to 55 (FY24)
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Inventory Days: Stable at ~544
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Cash Conversion Cycle: Reduced to 484 days in FY24 from 581 in FY22
Ownership Trends
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FII holdings increased from 9.07% (Mar ‘23) to 12.08% (Mar ‘25)
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Public shareholding has also steadily climbed, showing broadening investor interest
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Over 13.5 lakh shareholders, more than double since June ‘22
Technical Analysis
As of May 9, 2025, HAL is trading at ₹4,501, with a 15.54% YoY gain and a strong uptrend in the medium to long term.
Key Indicators:
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RSI (Relative Strength Index): 61.33 – Neutral to Bullish
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MACD: 144.17 – Bullish momentum
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ADX: 30.81 – Strong trend
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Supertrend: Active at ₹4,133 – Bullish trigger
Support & Resistance Levels:
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Support: ₹4,223
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Resistance: ₹4,609
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A breakout above resistance could lead to fresh all-time highs.
Conclusion: Ready for Takeoff Again?
HAL isn’t just flying—it’s cruising at a higher altitude with enviable fundamentals, superior profit growth, and a debt-free balance sheet. In addition to increasing FII interest and a strong technical setup, HAL looks like it could break through current resistance levels if Q4 results impress. Investors watching for growth and stability in the defense sector should keep HAL on their radar.
Disclaimer: This is not investment advice. All stock market investments involve risk. Please consult a licensed financial advisor before making any investment decisions.
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