Hindustan Aeronautics Limited

Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

# Income Statement
Sales ₹ 15,134.79 ₹ 15,730.03 ₹ 16,758.50 ₹ 17,950.20 ₹ 18,519.25 ₹ 20,008.47 ₹ 21,445.37 ₹ 22,882.36 ₹ 24,620.21 ₹ 26,927.85
Sales Growth - 3.93% 6.54% 7.11% 3.17% 8.04% 7.18% 6.70% 7.59% 9.37%

COGS ₹ 11,719.89 ₹ 12,172.94 ₹ 13,293.97 ₹ 13,839.79 ₹ 14,214.70 ₹ 14,072.16 ₹ 14,931.49 ₹ 16,296.36 ₹ 15,481.96 ₹ 16,164.11
COGS% Sales 77.44% 77.39% 79.33% 77.10% 76.76% 70.33% 69.63% 71.22% 62.88% 60.03%

Gross Profit ₹ 3,414.90 ₹ 3,557.09 ₹ 3,464.53 ₹ 4,110.41 ₹ 4,304.55 ₹ 5,936.31 ₹ 6,513.88 ₹ 6,586.00 ₹ 9,138.25 ₹ 10,763.74
Gross Margins 22.56% 22.61% 20.67% 22.90% 23.24% 29.67% 30.37% 28.78% 37.12% 39.97%

Selling & General Expenses ₹ 1,844.89 ₹ 1,206.27 ₹ 987.03 ₹ 874.66 ₹ 844.32 ₹ 1,367.52 ₹ 1,633.73 ₹ 1,244.62 ₹ 3,718.43 ₹ 4,094.27
S&G Exp% Sales 12.19% 7.67% 5.89% 4.87% 4.56% 6.83% 7.62% 5.44% 15.10% 15.20%

EBITDA ₹ 1,570.01 ₹ 2,350.82 ₹ 2,477.50 ₹ 3,235.75 ₹ 3,460.23 ₹ 4,568.79 ₹ 4,880.15 ₹ 5,341.38 ₹ 5,419.82 ₹ 6,669.47
EBITDA Margins 10.37% 14.94% 14.78% 18.03% 18.68% 22.83% 22.76% 23.34% 22.01% 24.77%

Interest ₹ 8.28 ₹ 14.66 ₹ 5.90 ₹ 16.45 ₹ 34.62 ₹ 177.49 ₹ 359.43 ₹ 266.72 ₹ 65.14 ₹ 64.35
Interest % Sales 0.05% 0.09% 0.04% 0.09% 0.19% 0.89% 1.68% 1.17% 0.26% 0.24%

Depreciation ₹ 602.51 ₹ 806.06 ₹ 862.80 ₹ 680.61 ₹ 946.97 ₹ 1,024.47 ₹ 997.63 ₹ 1,157.19 ₹ 1,109.87 ₹ 1,783.91
Depreciation % Sales 3.98% 5.12% 5.15% 3.79% 5.11% 5.12% 4.65% 5.06% 4.51% 6.62%

Earnings Before Tax ₹ 959.22 ₹ 1,530.10 ₹ 1,608.80 ₹ 2,538.69 ₹ 2,478.64 ₹ 3,366.83 ₹ 3,523.09 ₹ 3,917.47 ₹ 4,244.81 ₹ 4,821.21
EBT % Sales 6.34% 9.73% 9.60% 14.14% 13.38% 16.83% 16.43% 17.12% 17.24% 17.90%

Tax ₹ 885.17 ₹ 784.47 ₹ 1,209.00 ₹ 966.95 ₹ 1,252.43 ₹ 1,396.28 ₹ 1,095.99 ₹ 1,037.93 ₹ 144.65 ₹ 681.77
Effective Tax Rate 92.28% 51.27% 75.15% 38.09% 50.53% 41.47% 31.11% 26.49% 3.41% 14.14%

Net Profit ₹ 74.05 ₹ 745.63 ₹ 399.80 ₹ 1,571.74 ₹ 1,226.21 ₹ 1,970.55 ₹ 2,427.10 ₹ 2,879.54 ₹ 4,100.16 ₹ 4,139.44
Net Margins 0.49% 4.74% 2.39% 8.76% 6.62% 9.85% 11.32% 12.58% 16.65% 15.37%

No of Equity Shares 48.20 48.20 36.15 36.15 33.44 33.44 33.44 33.44 33.44 33.44

Earnings Per Share ₹ 1.54 ₹ 15.47 ₹ 11.06 ₹ 43.48 ₹ 36.67 ₹ 58.93 ₹ 72.58 ₹ 86.11 ₹ 122.62 ₹ 123.79
EPS Growth % - 906.9% -28.5% 293.1% -15.7% 60.7% 23.2% 18.6% 42.4% 1.0%

Dividend per Share ₹ 18.50 ₹ 9.96 ₹ 17.40 ₹ 22.13 ₹ 32.17 ₹ 19.80 ₹ 33.25 ₹ 30.00 ₹ 40.00 ₹ 55.00
Dividend Payout Ratio 1204.19% 64.38% 157.33% 50.90% 87.73% 33.60% 45.81% 34.84% 32.62% 44.43%

Retained Earnings 0.00% 35.62% 0.00% 49.10% 12.27% 66.40% 54.19% 65.16% 67.38% 55.57%

# Balance Sheet
Equity Share Capital ₹ 482.00 ₹ 482.00 ₹ 361.50 ₹ 361.50 ₹ 334.39 ₹ 334.39 ₹ 334.39 ₹ 334.39 ₹ 334.39 ₹ 334.39
Reserves ₹ 14,532.64 ₹ 16,304.07 ₹ 10,657.60 ₹ 12,175.13 ₹ 9,151.26 ₹ 11,740.54 ₹ 12,865.19 ₹ 15,033.79 ₹ 18,929.61 ₹ 23,171.78
Borrowings ₹ 684.16 ₹ 4.53 ₹ 79.80 ₹ 1,022.03 ₹ 904.52 ₹ 4,156.66 ₹ 5,926.97 ₹ 52.71 ₹ 48.64 ₹ 51.00
Other Liabilities ₹ 48,179.62 ₹ 47,251.84 ₹ 45,419.70 ₹ 38,148.85 ₹ 38,043.70 ₹ 35,238.05 ₹ 35,008.40 ₹ 37,601.27 ₹ 40,870.71 ₹ 45,632.41
Total ₹ 63,878.42 ₹ 64,042.44 ₹ 56,518.60 ₹ 51,707.51 ₹ 48,433.87 ₹ 51,469.64 ₹ 54,134.95 ₹ 53,022.16 ₹ 60,183.35 ₹ 69,189.58

Fixed Assets Net Block ₹ 2,088.18 ₹ 7,191.14 ₹ 6,925.20 ₹ 7,349.56 ₹ 7,566.07 ₹ 7,454.30 ₹ 7,351.48 ₹ 7,157.95 ₹ 6,758.14 ₹ 6,827.33
Capital Work in Progress ₹ 184.74 ₹ 216.38 ₹ 1,025.40 ₹ 1,389.40 ₹ 1,457.82 ₹ 1,499.01 ₹ 2,040.11 ₹ 1,948.42 ₹ 2,471.85 ₹ 1,883.91
Investments ₹ 707.43 ₹ 745.31 ₹ 886.40 ₹ 980.74 ₹ 989.37 ₹ 901.79 ₹ 940.15 ₹ 1,054.95 ₹ 1,294.14 ₹ 1,385.39
Other Assets ₹ 14,729.52 ₹ 6,828.70 ₹ 5,543.50 ₹ 5,112.05 ₹ 4,997.30 ₹ 8,592.82 ₹ 11,891.37 ₹ 12,003.99 ₹ 14,448.12 ₹ 19,834.86
Total Non Current Assets ₹ 17,709.87 ₹ 14,981.53 ₹ 14,380.50 ₹ 14,831.75 ₹ 15,010.56 ₹ 18,447.92 ₹ 22,223.11 ₹ 22,165.31 ₹ 24,972.25 ₹ 29,931.49

Receivables ₹ 6,884.06 ₹ 6,242.60 ₹ 4,836.90 ₹ 4,220.16 ₹ 6,750.79 ₹ 12,459.03 ₹ 11,234.73 ₹ 5,669.55 ₹ 4,641.55 ₹ 4,719.07
Inventory ₹ 22,349.51 ₹ 25,146.93 ₹ 23,997.80 ₹ 21,538.76 ₹ 20,148.32 ₹ 20,467.31 ₹ 20,379.20 ₹ 18,020.97 ₹ 16,225.94 ₹ 14,232.87
Cash & Bank ₹ 16,934.98 ₹ 17,671.38 ₹ 13,303.40 ₹ 11,116.84 ₹ 6,524.20 ₹ 95.38 ₹ 297.91 ₹ 7,166.33 ₹ 14,343.61 ₹ 20,306.15
Total Current Assets ₹ 46,168.55 ₹ 49,060.91 ₹ 42,138.10 ₹ 36,875.76 ₹ 33,423.31 ₹ 33,021.72 ₹ 31,911.84 ₹ 30,856.85 ₹ 35,211.10 ₹ 39,258.09

Total Assets ₹ 63,878.42 ₹ 64,042.44 ₹ 56,518.60 ₹ 51,707.51 ₹ 48,433.87 ₹ 51,469.64 ₹ 54,134.95 ₹ 53,022.16 ₹ 60,183.35 ₹ 69,189.58

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# Cash Flow Statement

Operating Activities
Profit from operations ₹ 5,131.00 ₹ 5,340.00 ₹ 6,223.00 ₹ 6,538.00 ₹ 6,754.00 ₹ 9,625.00 ₹ 11,136.00
Receivables ₹ 571.00 ₹ (3,563.00) ₹ (9,335.00) ₹ (1,883.00) ₹ 4,995.00 ₹ 611.00 ₹ (1,749.00)
Inventory ₹ 2,663.00 ₹ 1,837.00 ₹ 198.00 ₹ 49.00 ₹ 2,458.00 ₹ 1,765.00 ₹ 1,922.00
Payables ₹ (347.00) ₹ (98.00) ₹ 963.00 ₹ 1,456.00 ₹ (1,837.00) ₹ 299.00 ₹ 578.00
Other WC items ₹ (7,404.00) ₹ (2,740.00) ₹ (4,651.00) ₹ (2,804.00) ₹ 3,629.00 ₹ (1,092.00) ₹ (294.00)
Working capital changes ₹ (4,517.00) ₹ (4,564.00) ₹ (12,825.00) ₹ (3,182.00) ₹ 9,245.00 ₹ 1,583.00 ₹ 456.00
Direct taxes ₹ (1,037.00) ₹ (1,510.00) ₹ (1,092.00) ₹ (1,820.00) ₹ (875.00) ₹ (1,027.00) ₹ (2,756.00)
Cash From Operating Activities
₹ (4,940.00) ₹ (5,298.00) ₹ (20,519.00) ₹ (1,646.00) ₹ 24,369.00 ₹ 11,764.00 ₹ 9,293.00

Investing Activities
Fixed assets purchased ₹ (1,514.00) ₹ (1,250.00) ₹ (1,390.00) ₹ (1,380.00) ₹ (1,208.00) ₹ (1,500.00) ₹ (1,781.00)
Fixed assets sold ₹ 12.00 ₹ 1.00 ₹ 2.00 ₹ 2.00 ₹ 1.00 ₹ 3.00 ₹ 5.00
Investments purchased ₹ (64.00) ₹ (64.00) - ₹ (74.00) ₹ (66.00) ₹ (235.00) ₹ (91.00)
Investments sold - - ₹ 105.00 - - - -
Interest received - - ₹ 260.00 ₹ 64.00 ₹ 76.00 ₹ 200.00 ₹ 738.00
Dividends received ₹ 3.00 ₹ 1.00 ₹ 2.00 ₹ 1.00 ₹ 1.00 ₹ 2.00 ₹ 2.00
Invest in subsidiaries - - ₹ (20.00) - - - -
Investment in group cos ₹ (2.00) ₹ (2.00) - ₹ (1.00) - ₹ (10.00) -
Acquisition of companies ₹ (30.00) ₹ (5.00) - - - - ₹ (15.00)
Other investing items ₹ 4,616.00 ₹ 1,913.00 ₹ 6,334.00 ₹ 54.00 ₹ 5.00 ₹ (11,250.00) ₹ (4,593.00)
Cash from Investing Activities ₹ 3,021.00 ₹ 594.00 ₹ 5,293.00 ₹ (1,334.00) ₹ (1,191.00) ₹ (12,790.00) ₹ (5,735.00)

Financing Activities
Proceeds from borrowings ₹ 950.00 - ₹ 3,289.00 ₹ 1,753.00 - - -
Repayment of borrowings - - - - ₹ (5,860.00) ₹ (9.00) -
Interest paid fin ₹ (10.00) ₹ (29.00) ₹ (170.00) ₹ (348.00) ₹ (204.00) ₹ (117.00) ₹ (56.00)
Dividends paid ₹ (1,104.00) ₹ (1,295.00) ₹ (798.00) ₹ (1,340.00) ₹ (1,003.00) ₹ (1,338.00) ₹ (1,672.00)
Financial liabilities - ₹ (3.00) - - ₹ (3.00) - ₹ (4.00)
Other financing items - ₹ (1,214.00) - - - - -
Cash From Financing Activities ₹ (164.00) ₹ (2,541.00) ₹ 2,321.00 ₹ 65.00 ₹ (7,070.00) ₹ (1,464.00) ₹ (1,732.00)

Net Cash Flow ₹ 2,433.00 ₹ (2,680.00) ₹ (80.00) ₹ 266.00 ₹ 6,864.00 ₹ (4,072.00) ₹ 1,370.00
 Hindustan Aeronautics Limited
Ratio Analysis
Years Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trend Mean Median

Sales Growth 7.11% 3.17% 8.04% 7.18% 6.70% 7.59% 9.37% 7.02% 7.18%
EBITDA Growth 30.61% 6.94% 32.04% 6.81% 9.45% 1.47% 23.06% 15.77% 9.45%
EBIT Growth 57.80% -2.37% 35.83% 4.64% 11.19% 8.36% 13.58% 18.43% 11.19%
Net Profit Growth 293.13% -21.98% 60.70% 23.17% 18.64% 42.39% 0.96% 59.57% 23.17%
Dividend Growth 27.18% 45.37% -38.45% 67.93% -9.77% 33.33% 37.50% 23.30% 33.33%

Gross Margin 22.9% 23.2% 29.7% 30.4% 28.8% 37.1% 40.0% 30.29% 29.67%
EBITDA Margin 18.03% 18.68% 22.83% 22.76% 23.34% 22.01% 24.77% 21.78% 22.76%
EBIT Margin 14.23% 13.57% 17.71% 18.10% 18.29% 17.51% 18.14% 16.79% 17.71%
EBT Margin 14.14% 13.38% 16.83% 16.43% 17.12% 17.24% 17.90% 16.15% 16.83%
Net Profit Margin 8.76% 6.62% 9.85% 11.32% 12.58% 16.65% 15.37% 11.59% 11.32%

SalesExpenses%Sales 4.87% 4.56% 6.83% 7.62% 5.44% 15.10% 15.20% 8.52% 6.83%
Depreciation%sales 3.79% 5.11% 5.12% 4.65% 5.06% 4.51% 6.62% 4.98% 5.06%
OperatingIncome%Sales 14.23% 13.57% 17.71% 18.10% 18.29% 17.51% 18.14% 16.79% 17.71%

Return on capital Employ 18.85% 24.19% 21.84% 20.30% 27.13% 22.32% 20.74% 22.19% 21.84%
Retained Earnings% 49.10% 12.27% 66.40% 54.19% 65.16% 67.38% 55.57% 52.87% 55.57%
Return on Equity% 12.54% 12.93% 16.32% 18.39% 18.74% 21.28% 17.61% 16.83% 17.61%
Self sustained Growth Rate 6.16% 1.59% 10.84% 9.96% 12.21% 14.34% 9.79% 9.27% 9.96%
Interest coverage Ratio 155.33x 72.60x 19.97x 10.80x 15.69x 66.16x 75.92x 59.50x 66.16x

Debtor Turnover Ratio 4.25x 2.74x 1.61x 1.91x 4.04x 5.30x 5.71x 3.65x 4.04x
Credit Turnover Ratio 0.47x 0.49x 0.57x 0.61x 0.61x 0.60x 0.59x 0.56x 0.59x
Inventory Turnover 0.83x 0.92x 0.98x 1.05x 1.27x 1.52x 1.89x 1.21x 1.05x
Fixed Asset Turnover 2.44x 2.45x 2.68x 2.92x 3.20x 3.64x 3.94x 3.04x 2.92x
Capital Turnover Ratio 1.43x 1.95x 1.66x 1.62x 1.49x 1.28x 1.15x 1.51x 1.49x

Debtor Days 86 133 227 191 90 69 64 123 90

Payable Days 776 750 643 596 600 606 619 655 619
Inventory Days 438 397 373 347 287 241 193 325 347
Cash Conversion cycle -252 -220 -42 -58 -222 -297 -362 -207 -222

CFO/Sales 28.58% 28.83% 31.10% 30.49% 29.52% 39.09% 41.35% 32.71% 30.49%
CFO/Total Assets 9.92% 11.03% 12.09% 12.08% 12.74% 15.99% 16.09% 12.85% 12.09%
CFO/Total Debt 502.04% 590.37% 149.71% 110.31% 12813.51% 19788.24% 21835.29% 7969.92% 590.37%
 Hindustan Aeronautics Limited
Forecasting

Sales Forecasting EBITDA Forecasting EPS Forecasting

Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth Year Weight Year EPS EPSGrowth
1 2014A 15134.79 1 2014A 1570.01 1 2014A 1.54
2 2015A 15730.03 3.93% 2 2015A 2350.82 49.73% 2 2015A 15.47 906.93%
3 2016A 16758.50 6.54% 3 2016A 2477.50 5.39% 3 2016A 11.06 -28.51%
4 2017A 17950.20 7.11% 4 2017A 3235.75 30.61% 4 2017A 43.48 293.13%
5 2018A 18519.25 3.17% 5 2018A 3460.23 6.94% 5 2018A 36.67 -15.66%
6 2019A 20008.47 8.04% 6 2019A 4568.79 32.04% 6 2019A 58.93 60.70%
7 2020A 21445.37 7.18% 7 2020A 4880.15 6.81% 7 2020A 72.58 23.17%
8 2021A 22882.36 6.70% 8 2021A 5341.38 9.45% 8 2021A 86.11 18.64%
9 2022A 24620.21 7.59% 9 2022A 5419.82 1.47% 9 2022A 122.62 42.39%
10 2023A 26927.85 9.37% 10 2023A 6669.47 23.06% 10 2023A 123.79 0.96%
11 2024E 27029.80 0.38% 11 2024E 6922.04 3.79% 11 2024E 135.06 9.11%
12 2025E 28308.36 4.73% 12 2025E 7453.79 7.68% 12 2025E 149.22 10.48%
13 2026E 29586.92 4.52% 13 2026E 7985.54 7.13% 13 2026E 163.37 9.48%
14 2027E 30865.49 4.32% 14 2027E 8517.30 6.66% 14 2027E 177.52 8.66%
15 2028E 32144.05 4.14% 15 2028E 9049.05 6.24% 15 2028E 191.67 7.97%
 Hindustan Aeronautics Limited
Common Size Statement
Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 60.45% 56.47% 54.73% 48.42% 43.45% 36.49% 39.57% 37.02% 37.17% 39.15%
Change in Inventory 4.92% 4.27% 3.35% -2.85% -3.94% -5.86% -2.96% -10.74% -2.41% 2.57%
Power and Fuel 1.43% 1.40% 1.40% 1.27% 1.24% 1.16% 0.94% 0.80% 0.81% 0.75%
Other Mfr. Exp 2.73% 2.31% 7.02% 4.68% 4.92% 5.35% 3.94% 3.91% 3.86% 4.51%
Employee Cost 17.74% 21.48% 19.54% 19.88% 23.21% 21.47% 22.21% 18.75% 18.64% 18.18%
Selling and admin 2.66% 1.44% 1.06% 1.21% 1.10% 1.76% 0.72% 0.60% 0.73% 0.79%
Other Expenses 9.53% 6.23% 4.83% 3.66% 3.46% 5.08% 6.90% 4.84% 14.37% 14.42%
Other Income 17.30% 10.44% 9.54% 5.82% 4.11% 1.88% 1.93% 1.57% 4.01% 6.21%
Depreciation 3.98% 5.12% 5.15% 3.79% 5.11% 5.12% 4.65% 5.06% 4.51% 6.62%
Interest 0.05% 0.09% 0.04% 0.09% 0.19% 0.89% 1.68% 1.17% 0.26% 0.24%
Profit before tax 23.64% 20.17% 19.14% 19.96% 17.49% 18.70% 18.36% 18.69% 21.25% 24.11%
Tax 5.85% 4.99% 7.21% 5.39% 6.76% 6.98% 5.11% 4.54% 0.59% 2.53%
Net profit 17.79% 15.18% 11.92% 14.57% 10.73% 11.73% 13.25% 14.16% 20.66% 21.58%
Dividend Amount 5.89% 3.05% 3.75% 4.46% 5.81% 3.31% 5.18% 4.38% 5.43% 6.83%

Common Size Balance Sheet

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.75% 0.75% 0.64% 0.70% 0.69% 0.65% 0.62% 0.63% 0.56% 0.48%
Reserves 22.75% 25.46% 18.86% 23.55% 18.89% 22.81% 23.77% 28.35% 31.45% 33.49%
Borrowings 1.07% 0.01% 0.14% 1.98% 1.87% 8.08% 10.95% 0.10% 0.08% 0.07%
Other Liabilities 75.42% 73.78% 80.36% 73.78% 78.55% 68.46% 64.67% 70.92% 67.91% 65.95%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 3.3% 11.2% 12.3% 14.2% 15.6% 14.5% 13.6% 13.5% 11.2% 9.9%
Capital Work in Progress 0.3% 0.3% 1.8% 2.7% 3.0% 2.9% 3.8% 3.7% 4.1% 2.7%
Investments 1.1% 1.2% 1.6% 1.9% 2.0% 1.8% 1.7% 2.0% 2.2% 2.0%
Receivables 10.78% 9.75% 8.56% 8.16% 13.94% 24.21% 20.75% 10.69% 7.71% 6.82%
Inventory 34.99% 39.27% 42.46% 41.65% 41.60% 39.77% 37.65% 33.99% 26.96% 20.57%
Cash & Bank 26.51% 27.59% 23.54% 21.50% 13.47% 0.19% 0.55% 13.52% 23.83% 29.35%
Other Assets 23.06% 10.66% 9.81% 9.89% 10.32% 16.69% 21.97% 22.64% 24.01% 28.67%
 Hindustan Aeronautics Limited
Beta Regression

Hindustan Aeronautics Limited Returns Nifty Returns Beta Drifting

Date Closing Price Weekly Returns Closing Price Weekly Returns Levered Raw Beta 0.76
25-03-2019 344.70 11,623.90 Raw Beta Weight 75.00%
01-04-2019 344.43 -0.08% 11,665.95 0.36%
08-04-2019 346.06 0.47% 11,643.45 -0.19% Market Beta 1.00
15-04-2019 340.33 -1.66% 11,752.80 0.94% Market Beta Weight 25.00%
22-04-2019 330.03 -3.03% 11,754.65 0.02%
29-04-2019 320.32 -2.94% 11,712.25 -0.36% Adjusted Beta 0.82
06-05-2019 310.75 -2.99% 11,278.90 -3.70%
13-05-2019 311.97 0.39% 11,407.15 1.14%
20-05-2019 329.42 5.60% 11,844.10 3.83%
27-05-2019 343.39 4.24% 11,922.80 0.66%
03-06-2019 344.84 0.42% 11,870.65 -0.44%
10-06-2019 332.90 -3.46% 11,823.30 -0.40%
17-06-2019 339.96 2.12% 11,724.10 -0.84%
24-06-2019 346.59 1.95% 11,788.85 0.55%
01-07-2019 338.97 -2.20% 11,811.15 0.19%
08-07-2019 327.70 -3.32% 11,552.50 -2.19%
15-07-2019 328.06 0.11% 11,419.25 -1.15%
22-07-2019 328.79 0.22% 11,284.30 -1.18%
29-07-2019 312.09 -5.08% 10,997.35 -2.54%
05-08-2019 312.89 0.26% 11,109.65 1.02%
12-08-2019 317.45 1.46% 11,047.80 -0.56%
19-08-2019 312.57 -1.54% 10,829.35 -1.98%
26-08-2019 315.44 0.92% 11,023.25 1.79%
02-09-2019 327.07 3.69% 10,946.20 -0.70%
09-09-2019 342.41 4.69% 11,075.90 1.18%
16-09-2019 367.06 7.20% 11,274.20 1.79%
23-09-2019 353.75 -3.63% 11,512.40 2.11%
30-09-2019 337.02 -4.73% 11,174.75 -2.93%
07-10-2019 348.95 3.54% 11,305.05 1.17%
14-10-2019 342.32 -1.90% 11,661.85 3.16%
21-10-2019 363.22 6.11% 11,583.90 -0.67%
28-10-2019 382.53 5.31% 11,890.60 2.65%
04-11-2019 368.32 -3.71% 11,908.15 0.15%
11-11-2019 390.81 6.10% 11,895.45 -0.11%
18-11-2019 385.15 -1.45% 11,914.40 0.16%
25-11-2019 376.04 -2.36% 12,056.05 1.19%
02-12-2019 371.43 -1.23% 11,921.50 -1.12%
09-12-2019 368.47 -0.80% 12,086.70 1.39%
16-12-2019 352.98 -4.20% 12,271.80 1.53%
23-12-2019 348.02 -1.40% 12,245.80 -0.21%
30-12-2019 357.57 2.74% 12,226.65 -0.16%
06-01-2020 357.40 -0.05% 12,256.80 0.25%
13-01-2020 400.03 11.93% 12,352.35 0.78%
20-01-2020 414.46 3.61% 12,248.25 -0.84%
27-01-2020 374.32 -9.68% 11,962.10 -2.34%
03-02-2020 378.28 1.06% 12,098.35 1.14%
10-02-2020 364.07 -3.76% 12,113.45 0.12%
17-02-2020 358.27 -1.59% 12,080.85 -0.27%
24-02-2020 332.44 -7.21% 11,201.75 -7.28%
02-03-2020 301.38 -9.34% 10,989.45 -1.90%
09-03-2020 259.66 -13.84% 9,955.20 -9.41%
16-03-2020 278.02 7.07% 8,745.45 -12.15%
23-03-2020 254.95 -8.30% 8,660.25 -0.97%
30-03-2020 256.80 0.72% 8,083.80 -6.66%
06-04-2020 266.05 3.60% 9,111.90 12.72%
13-04-2020 271.76 2.14% 9,266.75 1.70%
20-04-2020 258.35 -4.93% 9,154.40 -1.21%
27-04-2020 255.83 -0.98% 9,859.90 7.71%
04-05-2020 243.47 -4.83% 9,251.50 -6.17%
11-05-2020 254.23 4.42% 9,136.85 -1.24%
18-05-2020 259.91 2.23% 9,039.25 -1.07%
25-05-2020 269.77 3.79% 9,580.30 5.99%
01-06-2020 306.14 13.48% 10,142.15 5.86%
08-06-2020 317.99 3.87% 9,972.90 -1.67%
15-06-2020 343.26 7.95% 10,244.40 2.72%
22-06-2020 370.39 7.90% 10,383.00 1.35%
29-06-2020 413.58 11.66% 10,607.35 2.16%
06-07-2020 457.51 10.62% 10,768.05 1.51%
13-07-2020 455.27 -0.49% 10,901.70 1.24%
20-07-2020 441.77 -2.97% 11,194.15 2.68%
27-07-2020 423.51 -4.13% 11,073.45 -1.08%
03-08-2020 460.33 8.69% 11,214.05 1.27%
10-08-2020 628.98 36.64% 11,178.40 -0.32%
17-08-2020 588.17 -6.49% 11,371.60 1.73%
24-08-2020 490.90 -16.54% 11,647.60 2.43%
31-08-2020 442.28 -9.90% 11,333.85 -2.69%
07-09-2020 413.95 -6.41% 11,464.45 1.15%
14-09-2020 408.82 -1.24% 11,504.95 0.35%
21-09-2020 372.84 -8.80% 11,050.25 -3.95%
28-09-2020 387.99 4.06% 11,416.95 3.32%
05-10-2020 381.29 -1.73% 11,914.20 4.36%
12-10-2020 361.74 -5.13% 11,762.45 -1.27%
19-10-2020 348.58 -3.64% 11,930.35 1.43%
26-10-2020 333.97 -4.19% 11,642.40 -2.41%
02-11-2020 340.96 2.09% 12,263.55 5.34%
09-11-2020 376.99 10.57% 12,719.95 3.72%
16-11-2020 374.90 -0.55% 12,859.05 1.09%
23-11-2020 397.65 6.07% 12,968.95 0.85%
30-11-2020 409.19 2.90% 13,258.55 2.23%
07-12-2020 416.25 1.73% 13,513.85 1.93%
14-12-2020 419.63 0.81% 13,760.55 1.83%
21-12-2020 399.48 -4.80% 13,749.25 -0.08%
28-12-2020 415.99 4.13% 14,018.50 1.96%
04-01-2021 443.04 6.50% 14,347.25 2.35%
11-01-2021 468.97 5.85% 14,433.70 0.60%
18-01-2021 460.28 -1.85% 14,371.90 -0.43%
25-01-2021 450.37 -2.15% 13,634.60 -5.13%
01-02-2021 491.94 9.23% 14,924.25 9.46%
08-02-2021 498.18 1.27% 15,163.30 1.60%
15-02-2021 515.15 3.41% 14,981.75 -1.20%
22-02-2021 528.07 2.51% 14,529.15 -3.02%
01-03-2021 512.12 -3.02% 14,938.10 2.81%
08-03-2021 515.06 0.57% 15,030.95 0.62%
15-03-2021 501.02 -2.72% 14,744.00 -1.91%
22-03-2021 479.31 -4.33% 14,507.30 -1.61%
29-03-2021 502.26 4.79% 14,867.35 2.48%
05-04-2021 486.21 -3.20% 14,834.85 -0.22%
12-04-2021 469.21 -3.50% 14,617.85 -1.46%
19-04-2021 464.55 -0.99% 14,341.35 -1.89%
26-04-2021 464.40 -0.03% 14,631.10 2.02%
03-05-2021 466.18 0.38% 14,823.15 1.31%
10-05-2021 477.47 2.42% 14,677.80 -0.98%
17-05-2021 498.13 4.33% 15,175.30 3.39%
24-05-2021 499.71 0.32% 15,435.65 1.72%
31-05-2021 516.34 3.33% 15,670.25 1.52%
07-06-2021 507.79 -1.66% 15,799.35 0.82%
14-06-2021 492.40 -3.03% 15,683.35 -0.73%
21-06-2021 503.40 2.23% 15,860.35 1.13%
28-06-2021 518.21 2.94% 15,722.20 -0.87%
05-07-2021 542.71 4.73% 15,689.80 -0.21%
12-07-2021 522.44 -3.74% 15,923.40 1.49%
19-07-2021 535.91 2.58% 15,856.05 -0.42%
26-07-2021 542.23 1.18% 15,763.05 -0.59%
02-08-2021 524.50 -3.27% 16,238.20 3.01%
09-08-2021 528.87 0.83% 16,529.10 1.79%
16-08-2021 546.86 3.40% 16,450.50 -0.48%
23-08-2021 670.70 22.64% 16,705.20 1.55%
30-08-2021 677.16 0.96% 17,323.60 3.70%
06-09-2021 667.18 -1.47% 17,369.25 0.26%
13-09-2021 694.79 4.14% 17,585.15 1.24%
20-09-2021 650.84 -6.33% 17,853.20 1.52%
27-09-2021 648.82 -0.31% 17,532.05 -1.80%
04-10-2021 656.30 1.15% 17,895.20 2.07%
11-10-2021 701.17 6.84% 18,338.55 2.48%
18-10-2021 644.45 -8.09% 18,114.90 -1.22%
25-10-2021 634.83 -1.49% 17,671.65 -2.45%
01-11-2021 650.30 2.44% 17,916.80 1.39%
08-11-2021 688.08 5.81% 18,102.75 1.04%
15-11-2021 668.10 -2.90% 17,764.80 -1.87%
22-11-2021 624.32 -6.55% 17,026.45 -4.16%
29-11-2021 629.52 0.83% 17,196.70 1.00%
06-12-2021 633.43 0.62% 17,511.30 1.83%
13-12-2021 604.90 -4.50% 16,985.20 -3.00%
20-12-2021 597.47 -1.23% 17,003.75 0.11%
27-12-2021 588.53 -1.50% 17,354.05 2.06%
03-01-2022 611.06 3.83% 17,812.70 2.64%
10-01-2022 663.29 8.55% 18,255.75 2.49%
17-01-2022 686.85 3.55% 17,617.15 -3.50%
24-01-2022 688.08 0.18% 17,101.95 -2.92%
31-01-2022 680.05 -1.17% 17,516.30 2.42%
07-02-2022 669.65 -1.53% 17,374.75 -0.81%
14-02-2022 652.92 -2.50% 17,276.30 -0.57%
21-02-2022 638.77 -2.17% 16,658.40 -3.58%
28-02-2022 666.47 4.34% 16,245.35 -2.48%
07-03-2022 672.59 0.92% 16,630.45 2.37%
14-03-2022 701.80 4.34% 17,287.05 3.95%
21-03-2022 677.21 -3.50% 17,153.00 -0.78%
28-03-2022 740.70 9.38% 17,670.45 3.02%
04-04-2022 786.84 6.23% 17,784.35 0.64%
11-04-2022 814.13 3.47% 17,475.65 -1.74%
18-04-2022 815.00 0.11% 17,171.95 -1.74%
25-04-2022 774.48 -4.97% 17,102.55 -0.40%
02-05-2022 767.29 -0.93% 16,411.25 -4.04%
09-05-2022 733.95 -4.34% 15,782.15 -3.83%
16-05-2022 853.61 16.30% 16,266.15 3.07%
23-05-2022 872.18 2.18% 16,352.45 0.53%
30-05-2022 921.60 5.67% 16,584.30 1.42%
06-06-2022 918.63 -0.32% 16,201.80 -2.31%
13-06-2022 930.39 1.28% 15,293.50 -5.61%
20-06-2022 872.52 -6.22% 15,699.25 2.65%
27-06-2022 842.97 -3.39% 15,752.05 0.34%
04-07-2022 845.50 0.30% 16,220.60 2.97%
11-07-2022 838.46 -0.83% 16,049.20 -1.06%
18-07-2022 907.15 8.19% 16,719.45 4.18%
25-07-2022 983.27 8.39% 17,158.25 2.62%
01-08-2022 970.06 -1.34% 17,397.50 1.39%
08-08-2022 1,099.36 13.33% 17,698.15 1.73%
15-08-2022 1,088.48 -0.99% 17,758.45 0.34%
22-08-2022 1,104.27 1.45% 17,558.90 -1.12%
29-08-2022 1,150.89 4.22% 17,539.45 -0.11%
05-09-2022 1,181.12 2.63% 17,833.35 1.68%
12-09-2022 1,205.18 2.04% 17,530.85 -1.70%
19-09-2022 1,183.86 -1.77% 17,327.35 -1.16%
26-09-2022 1,141.05 -3.62% 17,094.35 -1.34%
03-10-2022 1,193.28 4.58% 17,314.65 1.29%
10-10-2022 1,134.84 -4.90% 17,185.70 -0.74%
17-10-2022 1,166.43 2.78% 17,576.30 2.27%
24-10-2022 1,224.92 5.01% 17,786.80 1.20%
31-10-2022 1,243.42 1.51% 18,117.15 1.86%
07-11-2022 1,203.87 -3.18% 18,349.70 1.28%
14-11-2022 1,273.46 5.78% 18,307.65 -0.23%
21-11-2022 1,326.20 4.14% 18,512.75 1.12%
28-11-2022 1,347.22 1.59% 18,696.10 0.99%
05-12-2022 1,319.37 -2.07% 18,496.60 -1.07%
12-12-2022 1,256.12 -4.79% 18,269.00 -1.23%
19-12-2022 1,184.61 -5.69% 17,806.80 -2.53%
26-12-2022 1,229.34 3.78% 18,105.30 1.68%
02-01-2023 1,213.85 -1.26% 17,859.45 -1.36%
09-01-2023 1,196.19 -1.45% 17,956.60 0.54%
16-01-2023 1,219.70 1.96% 18,027.65 0.40%
23-01-2023 1,194.30 -2.08% 17,604.35 -2.35%
30-01-2023 1,136.80 -4.81% 17,854.05 1.42%
06-02-2023 1,166.35 2.60% 17,856.50 0.01%
13-02-2023 1,281.81 9.90% 17,944.20 0.49%
20-02-2023 1,230.33 -4.02% 17,465.80 -2.67%
27-02-2023 1,307.77 6.29% 17,594.35 0.74%
06-03-2023 1,383.96 5.83% 17,412.90 -1.03%
13-03-2023 1,359.56 -1.76% 17,100.05 -1.80%
20-03-2023 1,247.82 -8.22% 16,945.05 -0.91%
27-03-2023 1,345.10 7.80% 17,359.75 2.45%
03-04-2023 1,363.28 1.35% 17,599.15 1.38%
10-04-2023 1,382.54 1.41% 17,828.00 1.30%
17-04-2023 1,370.62 -0.86% 17,624.05 -1.14%
24-04-2023 1,439.27 5.01% 18,065.00 2.50%
01-05-2023 1,450.41 0.77% 18,069.00 0.02%
08-05-2023 1,465.43 1.04% 18,314.80 1.36%
15-05-2023 1,513.84 3.30% 18,203.40 -0.61%
22-05-2023 1,488.39 -1.68% 18,499.35 1.63%
29-05-2023 1,560.39 4.84% 18,534.10 0.19%
05-06-2023 1,840.06 17.92% 18,563.40 0.16%
12-06-2023 1,893.21 2.89% 18,826.00 1.41%
19-06-2023 1,793.40 -5.27% 18,665.50 -0.85%
26-06-2023 1,867.67 4.14% 19,189.05 2.80%
03-07-2023 1,851.90 -0.84% 19,331.80 0.74%
10-07-2023 1,890.21 2.07% 19,564.50 1.20%
17-07-2023 1,899.08 0.47% 19,745.00 0.92%
24-07-2023 1,935.02 1.89% 19,646.05 -0.50%
31-07-2023 1,847.45 -4.53% 19,517.00 -0.66%
07-08-2023 1,874.30 1.45% 19,428.30 -0.45%
14-08-2023 1,865.82 -0.45% 19,310.15 -0.61%
21-08-2023 1,926.74 3.26% 19,265.80 -0.23%
28-08-2023 1,957.42 1.59% 19,435.30 0.88%
04-09-2023 2,037.88 4.11% 19,819.95 1.98%
11-09-2023 1,959.33 -3.85% 20,192.35 1.88%
18-09-2023 1,921.11 -1.95% 19,674.25 -2.57%
25-09-2023 1,915.06 -0.32% 19,638.30 -0.18%
02-10-2023 1,941.26 1.37% 19,653.50 0.08%
09-10-2023 1,957.94 0.86% 19,751.05 0.50%
16-10-2023 1,897.83 -3.07% 19,542.65 -1.06%
23-10-2023 1,840.60 -3.02% 19,047.25 -2.53%
30-10-2023 1,887.66 2.56% 19,230.60 0.96%
06-11-2023 2,057.86 9.02% 19,425.35 1.01%
13-11-2023 2,109.68 2.52% 19,731.80 1.58%
20-11-2023 2,225.63 5.50% 19,794.70 0.32%
27-11-2023 2,444.23 9.82% 20,267.90 2.39%
04-12-2023 2,713.25 11.01% 20,969.40 3.46%
11-12-2023 2,741.30 1.03% 21,456.65 2.32%
18-12-2023 2,683.72 -2.10% 21,349.40 -0.50%
25-12-2023 2,783.09 3.70% 21,731.40 1.79%
01-01-2024 2,977.22 6.98% 21,710.80 -0.09%
08-01-2024 2,979.90 0.09% 21,894.55 0.85%
15-01-2024 2,984.61 0.16% 21,622.40 -1.24%
22-01-2024 2,882.51 -3.42% 21,352.60 -1.25%
29-01-2024 2,949.52 2.32% 21,853.80 2.35%
05-02-2024 2,944.06 -0.19% 21,782.50 -0.33%
12-02-2024 3,055.84 3.80% 22,040.70 1.19%
19-02-2024 3,022.68 -1.09% 22,212.70 0.78%
26-02-2024 3,157.45 4.46% 22,338.75 0.57%
04-03-2024 3,316.15 5.03% 22,493.55 0.69%
11-03-2024 3,098.85 -6.55% 22,023.35 -2.09%
18-03-2024 3,170.50 2.31% 22,096.75 0.33%
25-03-2024 null null
 Hindustan Aeronautics Limited
Weighted Average Cost of Capital
Peer Comps

Name Country Total Debt Total Equity Tax Rate1 Debt/Equity Debt/Capital Levered Beta 2 Unlevered Beta 3
Hindustan Aeronautics Ltd India 0.37 212,140.46 30.00% 0.00% 0.00% 1.54 1.54
Bharat Dynamics India 4.49 30,901.31 30.00% 0.00% 0.00% 1.30 1.30
BEML Ltd India 390.54 12,883.37 30.00% 0.03% 0.03% 0.88 0.88
MTAR Technologie India 249.34 5,242.04 30.00% 0.05% 0.05% 0.83 0.83
Ideaforge Tech India 13.54 3,047.63 30.00% 0.00% 0.00% 0.92 0.92
Paras Defence India 25.36 2,529.54 30.00% 0.01% 0.01% 1.40 1.40

Average 30.00% 0.02% 0.02% 1.07 1.07

Median 30.00% 0.01% 0.01% 0.92 0.92

Cost of Debt Cost of Equity

Pre-tax cost of debt 151.19% Risk free rate 7.05%

Tax Rate 30.00% Equity Risk Premium 8.22%
After Tax cost of debt 105.83% Levered Beta 4 1.20
Cost of Equity 16.88%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.92

Total Debt 0.37 0.00% 0.02% Target Debt/ Equity 0.02%
Market Capitalization 212,140.46 100.00% 99.98% Tax Rate 30.00%
Total Capitalization 212,140.83 100.00% 100.00% Levered Beta 1.20

Debt / Equity 0.00% 0.02% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 16.88%
2. Levered Beta is based on 5 year monthly data Equity Weight 99.98%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 105.83%
Debt Weight 0.02%

WACC 16.90%
 Hindustan Aeronautics Limited
Intrinsic Growth

Calculation of ROIC Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets
Inventories ₹ 20,148.00 ₹ 20,467.00 ₹ 20,379.00 ₹ 18,021.00 ₹ 16,226.00 ₹ 14,233.00
Trade receivables ₹ 6,751.00 ₹ 12,459.00 ₹ 11,235.00 ₹ 5,670.00 ₹ 4,642.00 ₹ 4,719.00
Cash Equivalents ₹ 6,524.00 ₹ 95.00 ₹ 298.00 ₹ 7,166.00 ₹ 14,344.00 ₹ 20,306.00
Short term loans ₹ 38.00 ₹ 17.00 ₹ 12.00 ₹ 10.00 ₹ 64.00 ₹ 14.00
Other asset items ₹ 4,959.00 ₹ 8,576.00 ₹ 11,879.00 ₹ 11,994.00 ₹ 14,384.00 ₹ 19,821.00
Total Current Assets ₹ 38,420.00 ₹ 41,614.00 ₹ 43,803.00 ₹ 42,861.00 ₹ 49,660.00 ₹ 59,093.00

Current Liabilities
Trade Payables ₹ 1,666.00 ₹ 2,633.00 ₹ 4,089.00 ₹ 2,261.00 ₹ 2,560.00 ₹ 3,137.00
Advance from Customers ₹ 4,575.00 ₹ 13,753.00 ₹ 12,601.00 ₹ 5,110.00 ₹ 4,352.00 ₹ 5,540.00
Other liability items ₹ 31,803.00 ₹ 18,852.00 ₹ 18,318.00 ₹ 30,231.00 ₹ 33,959.00 ₹ 36,955.00
Total Current Liabilities ₹ 38,044.00 ₹ 35,238.00 ₹ 35,008.00 ₹ 37,602.00 ₹ 40,871.00 ₹ 45,632.00

Net Working Capital ₹ 376.00 ₹ 6,376.00 ₹ 8,795.00 ₹ 5,259.00 ₹ 8,789.00 ₹ 13,461.00

Non Current Assets

Land ₹ 30.00 ₹ 29.00 ₹ 32.00 ₹ 32.00 ₹ 28.00 ₹ 28.00
Building ₹ 1,099.00 ₹ 1,205.00 ₹ 1,371.00 ₹ 1,428.00 ₹ 1,452.00 ₹ 1,861.00
Plant Machinery ₹ 1,765.00 ₹ 2,037.00 ₹ 2,288.00 ₹ 2,272.00 ₹ 2,361.00 ₹ 2,493.00
Equipments ₹ 4,690.00 ₹ 5,064.00 ₹ 5,435.00 ₹ 5,913.00 ₹ 6,210.00 ₹ 6,750.00
Furniture n fittings ₹ 72.00 ₹ 82.00 ₹ 86.00 ₹ 85.00 ₹ 89.00 ₹ 102.00
Railway slidings - - - - - -
Vehicles ₹ 254.00 ₹ 375.00 ₹ 391.00 ₹ 412.00 ₹ 414.00 ₹ 482.00
Intangible Assets ₹ 1,712.00 ₹ 1,955.00 ₹ 2,061.00 ₹ 2,507.00 ₹ 2,919.00 ₹ 3,287.00
Other fixed assets ₹ 486.00 ₹ 453.00 ₹ 507.00 ₹ 513.00 ₹ 519.00 ₹ 842.00

Gross Block ₹ 10,108.00 ₹ 11,200.00 ₹ 12,172.00 ₹ 13,162.00 ₹ 13,992.00 ₹ 15,846.00

Accumulated Depreciation ₹ 2,478.00 ₹ 3,451.00 ₹ 4,486.00 ₹ 5,605.00 ₹ 6,704.00 ₹ 7,889.00
Net Non Current Assets ₹ 12,586.00 ₹ 14,651.00 ₹ 16,658.00 ₹ 18,767.00 ₹ 20,696.00 ₹ 23,735.00

# Invested Capital ₹ 12,962.00 ₹ 21,027.00 ₹ 25,453.00 ₹ 24,026.00 ₹ 29,485.00 ₹ 37,196.00

EBIT ₹ 2,513.26 ₹ 3,544.32 ₹ 3,882.52 ₹ 4,184.19 ₹ 4,309.95 ₹ 4,885.56

ROIC 19.39% 16.86% 15.25% 17.42% 14.62% 13.13%

Calculation of Reinvestment Rate Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net Capex ₹ (1,249.00) ₹ (1,388.00) ₹ (1,378.00) ₹ (1,207.00) ₹ (1,497.00) ₹ (1,776.00)

Change in Working Capital ₹ 6,000.00 ₹ 2,419.00 ₹ (3,536.00) ₹ 3,530.00 ₹ 4,672.00

EBIT ₹ 2,513.26 ₹ 3,544.32 ₹ 3,882.52 ₹ 4,184.19 ₹ 4,309.95 ₹ 4,885.56

Marginal Tax Rate 25% 25% 25% 25% 25% 25%
EBIT(1-T) ₹ 1,884.95 ₹ 2,658.24 ₹ 2,911.89 ₹ 3,138.14 ₹ 3,232.46 ₹ 3,664.17

Reinvestment ₹ 4,612.00 ₹ 1,041.00 ₹ (4,743.00) ₹ 2,033.00 ₹ 2,896.00

Reinvestment Rate 173.50% 35.75% -151.14% 62.89% 79.04%

4 Year Average 6.63%

4 Year Median 49.32%

Calculation of Growth Rate Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 173.50% 35.75% -151.14% 62.89% 79.04%

ROIC 16.86% 15.25% 17.42% 14.62% 13.13%

Intrinsic Growth 29.24% 5.45% -26.32% 9.19% 10.38%

4 Year Average -0.32%

4 Year Median 7.32%
 Hindustan Aeronautics Limited
DCF Valuation
Calculation of PV of FCFF Mar/23A Mar/24F Mar/25F Mar/26F Mar/27F Mar/28F

EBIT 4885.56 5129.84 5386.33 5655.65 5938.43 6235.35

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 3664.17 3847.38 4039.75 4241.73 4453.82 4676.51
Less: Reinvestment Rate 79.04% 79.04% 79.04% 79.04% 79.04% 79.04%
Free Cash Flow to Firm (FCFF) 768.17 806.58 846.91 889.25 933.72 980.40
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.92 0.79 0.68 0.58 0.50

PV of FCFF 746.01 670.09 601.89 540.64 485.61

Expected Growth 5.00%

Terminal Growth 6.25%
WACC 16.90%

Calculation of Terminal Value

FCFF (n+1) 1,029.42

WACC 16.90%
Terminal Growth Rate 6.25%

Terminal Value 9,668.79

Calculation of Equity Value per Share

PV of FCFF 3,044.24
PV of Terminal Value 4,789.16
Value of Operating Assets 7,833.40

Add: Cash 20306.15

Less: Debt 0
Value of Equity 28,139.55
No of Shares 66.88

Equity Value per Share 420.76

Share price 3169

Discount/Premium 7.53x
 Hindustan Aeronautics Limited

Amount in crores
Comparable Company Valuation

Market Data Financials Valuation

Net
Company Ticker Share Price Shares Outstanding Equity Value Net Debt Enterprise Value Revenue EBITDA Income EV/Revenue EV/EBITDA P/E

Hind.Aeronautics 3170.8 66.88 212055.18 0.37 190673.49 28106.64 8902.98 6144.3 6.78x 21.42x 34.51x
Bharat Dynamics 1686.05 18.33 30902.14 4.49 27093.23 2313.41 468.29 476.7 11.71x 57.86x 64.83x
BEML Ltd 3091.05 4.16 12871.13 390.54 13252.17 3928.61 414.46 182.67 3.37x 31.97x 70.46x
MTAR Technologie 1704.8 3.08 5243.9 249.34 5478.59 633.43 164.02 81.94 8.65x 33.40x 64.00x
Ideaforge Tech 710.35 4.29 3046.36 13.54 2821.08 250.36 60.08 29.13 11.27x 46.96x 104.58x
Paras Defence 649.65 3.9 2533.64 25.36 2546.28 225.36 65.58 32.76 11.30x 38.83x 77.34x
NIBE 1303.4 1.31 1711.65 48.23 1728.03 192.29 24.98 7.62 8.99x 69.18x 224.63x

High 11.71X 57.86X 104.58X

75th Percentile 11.29X 44.92X 75.62X
Average 8.85X 38.41X 69.29X
Median 9.96X 36.11X 67.64X
25th Percentile 7.25X 32.33X 64.20X
Low 3.37X 21.42X 34.51X

HAL Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 279902.49 321526.87 415619.98

Net Debt 0.37 0.37 0.37
Implied Market Value 279902.12 321526.50 415619.61
Shares Outstanding 66.88 66.88 66.88

Implied Value per Share 4185.14 4807.51 6214.41

Undervalued Undervalued Undervalued