Finding a stock that delivers stable returns in today’s volatile market is like finding a needle in a storm. But one company that continues to reward its investors is Hindustan Aeronautics Limited (HAL). This defence sector multibagger has delivered 475% returns in the last 3 years and a whopping 960% in 5 years. So, does it still have growth potential? Let’s break it down.
HAL’s Recent Performance
- Current Share Price: ₹5,050.10 (up 0.75% from the previous close)
- 52-Week High / Low: ₹5,675 / ₹3,045.95
- FIIs (Goldman Sachs) Purchase: 1.04 lakh shares at ₹4,870 per share — total investment of ₹511 crore
Despite short-term market volatility, HAL remains a strong long-term bet for investors seeking consistent growth and exposure to India’s defence sector.
What Does HAL Do?
Hindustan Aeronautics Limited (HAL) is India’s leading aerospace and defence manufacturing company. It designs, manufactures, and services fighter aircraft, helicopters, and their engines for the Indian Armed Forces.
HAL operates across three main business segments:
- Manufacturing: Production of new aircraft and engines.
- Services: Maintenance, repair, and overhaul (MRO).
- Research & Development (R&D): Indigenous projects like HTT-40 trainer aircraft and Light Utility Helicopter (LUH).
Major Milestone
In October 2024, HAL was awarded the “Maharatna” status, becoming the first-ever Defence PSU to receive this recognition — a testament to its scale and strategic importance.
Financial Highlights
- Q4 FY25 Sales: ₹13,700 crore
- Q4 FY25 Profit: ₹3,977 crore
- FY25 Annual Sales: ₹30,981 crore (up 2% YoY)
- FY25 Annual Profit: ₹8,364 crore (up 10% YoY)
- Order Book: ₹1.89 lakh crore (up from ₹94,127 crore in FY24)
HAL’s numbers clearly show steady growth in revenue and profitability, along with a record-breaking order pipeline.
Upcoming Defence Orders
| Project | Units | Value (₹ Crore) |
|---|---|---|
| LCA Tejas Mk1A | 97 | ~65,000 |
| Advanced Light Helicopters (ALH) – IAF/Army | 143 | ~15,000 |
| Dornier Aircraft Upgrade | 40 | ~3,500 |
| Repair and Overhaul Orders | — | ~20,000 |
These upcoming orders reflect HAL’s central role in India’s defence modernization and indigenous manufacturing push under ‘Make in India’.
Investor Confidence
- Promoter Holding (Government of India): 71.64%
- DIIs (Mutual Funds, Insurance Companies): 8.26% and rising
- Market Capitalization: ₹3.3 lakh crore
- Dividend Payout Ratio: 27.4% — ensuring regular income for shareholders
The increasing interest from institutional investors (FIIs and DIIs) shows growing confidence in HAL’s fundamentals and long-term strategy.
Conclusion
With a massive ₹1.89 lakh crore order book, strong government backing, and a relentless focus on R&D and indigenous defence manufacturing, HAL remains one of the most promising long-term investment stories in India’s defence sector.
The company’s consistent growth, robust balance sheet, and leadership in aerospace make it a solid portfolio stock for investors who believe in India’s rising defence capabilities and self-reliance mission.
