HINDUSTAN AERONAUTICS LTD Intrinsic Value

HAL · Capital Goods · Current price ₹4,500.7

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DocStoX fair value
₹2,914
low confidence
Current price
₹4,501
Upside to fair value
-35.2%
Verdict
Avoid
Quality score
6.1 / 10
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Is HINDUSTAN AERONAUTICS LTD undervalued?

DocStoX estimates the fair value of HINDUSTAN AERONAUTICS LTD at ₹2,914 per share, versus the current market price of ₹4,501. That puts the stock about -35.2% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹999), Relative P/E (₹7,602), Graham floor (₹1,372). 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 ₹999 (bear) to ₹2,914 (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.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹4,501 versus an intrinsic value of ₹2,914, HINDUSTAN AERONAUTICS LTD currently offers -35.2% of negative margin (i.e. a premium).

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.