#HAL is not a one trick pony of #Tejas as one would expect. It has various projects in Defence sector. Tejas MK-1 & MK-2 are just two of its top line products in production for Indian Airforce.
#HAL profile is design, manufacture, design, develop, maintain aircrafts, helicopters, aero-engines, avionics, accessories, aerospace structure and Industrial Gas Turbines. It is manufacturing LCA TEJAS, Dhruv Advanced Light Helicopter, LCH & LUH.
It manufactures under license Sukhoi-SU 3KI, Hawk Advance Jet Trainer, Chetak & Cheetal Helicopters. Future projects include HTT-49 Basic Trainer, LCA MK2, Maritime Utility Helicopter & Combat Air Teaming System.
FY 22 Revenues HAL had 64% revenue from Maintenance, Repair & Overhaul of Russian & Western jets in IAF. 36% revenue is from manufacturing. It has 20 production & 10 R&D centre’s across 9 geographic locations across India.
There are 5 complexes #HAL as Bangalore Complex, MiG complex, Helicopter Complex, Accessories Complex & Design Complex. A new facility at Tumkuru to manufacture Helicopters.
It supplies high precision structural & composite work packages, assemblies, avionics to Airbus, Boeing, Rolls Royce & IAI. HAL latest order book has orders 85,000 crores & 75% of which is for manufacturing which is 3.2X its TTM revenues i.e. 26,600 crores.
In pipeline #HAL has 1.24 lakh crores worth orders in manufacturing over next 3 to 4 years for LUH, LCH, Engines for SU-30 & MiG 29. Indian Government has aimed exports it 35,000 crore of Defence equip by FY 25 & HAL is estimated to have 2,500 cr exports by FY 25.
#HAL is planning to diversify into Civil Aviation as well. The company has surplus cash reserves of 14,000 crores of which it is putting 6-7% in R&D for developing in house defence equipments. Defence is a very high entry barrier and thus there is less competition.
HAL is dependent on Government of India & IAF for bulk of its order and is now diversifying into Civil MRO, Freight Conversion of Aircraft, Simulator etc.
On PE ration BEL is 29 & HAL is 14 which means stock is still heavily undervalued compared to average PE ratio 4 def sector
On PE ration BEL is 29 & HAL is 14 which means stock is still heavily undervalued compared to average PE ratio 4 def sector
HAL is likely to be rerated soon. For Its financials are revenue as follows: 
Profit before Tax #HAL
Operating Profit margins of #HAL
ROE & ROCE OF #HAL
It’s debt to equity ratio is ZERO which means its a Debt Free company.
Cash Reserves of #HAL !!!
A niche Defence Sector Monopoly, a zero debt company, with high cash reserves & profits. A company who stock is still undervalued per sector PE & has order book of 3.2X of its 12 months sale is a potential multi-bagger. Thats #HAL in short !!!
This is just analysis of the fundamentals of the #HAL not an investment advice or recommendation. Please do your own research before investing. Thanks 🙏🏼
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