HINDUSTAN AERONAUTICS LTD Fair Value
HAL · Capital Goods · Current price ₹4,799
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,455 | 24% ROE fading to 12% over ~20 yrs, on ₹614 book |
| Relative P/E | ₹7,602 | EPS × 55.8 peer-median P/E |
| Graham floor | ₹1,372 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹5,467 | Street consensus 12-month target price |
Is HINDUSTAN AERONAUTICS LTD undervalued?
DocStoX estimates the fair value of HINDUSTAN AERONAUTICS LTD at ₹3,583 per share, versus the current market price of ₹4,799. That puts the stock about -25.3% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,455), Relative P/E (₹7,602), Graham floor (₹1,372), Analyst target (₹5,467). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹1,372 (bear) to ₹3,583 (base) to ₹7,602 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on HINDUSTAN AERONAUTICS LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.