Mehabe score: 5 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Hindustan Aeronautics is engaged in the business of Manufacture of Aircraft and Helicopters and Repair, Maintenance of Aircraft and Helicopters.(Source : 202003 Annual Report Page No:46)
Main Points
Core Aviation Equipment Supplier
HAL plays a strategic role in India’s defense program being the only Indian company having specialization in aircraft manufacturing and providing its Maintenance and related services. #Site:HAL
Market Cap:
Rs 34,880 cr
Price:
1043.0
Trading pe:
12.2x
Book-value:
418/share
Div yield:
3.19 %
Earning yield:
11.52%
Face-value:
10.0/share
52week high:
1423.55
52week low:
658.00
Technical Analysis
Stock trades at 1043.0, above its 50dma 1016.46. It also trades above its 200dma 941.86. The stock remains bullish on techicals
The 52 week high is at 1423.55 and the 52week low is at 658.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is providing a good dividend yield of 3.19%.
– has been maintaining a healthy dividend payout of 40.39%
Weakness
– Contingent liabilities of Rs.11360.91 Cr.
– has high debtors of 197.22 days.
Competition
– The industry trades at a mean P/E of 19.4x. GMM Pfaudler trades at the industry’s max P/E of 92.12x. HAL trades at a P/E of 12.2x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. HAL has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by ISGEC Heavy: a return of 25.26 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 5425.0 cr compared to Rs 4455.0 cr for period ended Dec 2019, a rise of 21.8%
Operating Profits reported at Rs 1209.0 cr for period ended Dec 2020 vis-vis 871.0 for period ended Dec 2019 .
Operating Margins expanded 273.5 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 25.52 compared to Rs 18.4 for previous quarter ended Sep 2020 and Rs 13.78 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 22265.0 cr for period ended TTM vis-vis sales of Rs 21438.0 cr for the period ended Mar 2020, a growth of 3.7%. The 3 year sales cagr stood at 6.3%.
Net Profit reported at Rs 2853.0 cr for period ended TTM vis-vis sales of Rs 2873.0 cr for the period ended Mar 2020, falling 0.7%.
Company recorded a healthy Net Profit CAGR of 12.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1621.0 cr for period ended Mar 2020 vis-vis Rs -7700.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 23.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 37% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.91% vis-vis 0.3% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 3.63% vis-vis 4.84% for Dec 2020
Conclusion
– Stock is providing a good dividend yield of 3.19%.
– has been maintaining a healthy dividend payout of 40.39% – Contingent liabilities of Rs.11360.91 Cr.
– has high debtors of 197.22 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1016.46 and is trading at 1043.0, thus bullish price action wise.
