Detail about Hindustan Aeronautics Ltd.

 Hindustan Aeronautics Limited( HAL) is a limited Company incorporated in India. It's presently a Government Company within the meaning of Section 2( 45) of the Companies Act, 2013 as the President of India acting through the Ministry of Defense( MoD) holds89.97 equity shares of the Company. 

 Hindustan Aeronautics has been conferred the ‘ Navratna ’ status by the GoI in June 2007 and is the largest DPSU in terms of the value of product according to the MoD Annual Report 2016- 2017. It was the largest aerospace company in the world in terms of profit in 2016 according to Flight International. Its operations are organized into five complexes, videlicet the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex, which together include numerous product divisions and colorful exploration and design centers ( R&D Centres) located across India. It calculates indigenous exploration as well as enters into technology transfer and license agreements to manufacture its products. 

 The business area of the company 

 HAL is engaged in the design, development, manufacture, form, overhaul, upgrade, and servicing of a wide range of products including, aircraft, copters, aero-machines, avionics, accessories, and aerospace structures. The Company has been set up to meet the demand of Indian Defense Forces( videlicet Indian Airforce, Indian Navy, Indian Army, and Coast Guard) in the area of Aerospace. 

Brands

These are the brands of Hindustan Aeronautics Ltd.

 Products and services offered by the company 

 Products 

• Aircrafts 
•  copters 
•  Future Products 
•  Power Point 
• Avionics 
•  System and Accessories 
•  Aerospace 
•  Accoutrements 

 Services 

•  Aircraft MRO 
•  copters MRO 
• Power Plant Services 
•  Systems, Accessories and Avionics 
•  Exports 
• Aerostructures 
•  Software 
•  Dornier- 228 
•  reserves & Services 
•  Copters 
•  Machines 
•  Avionics 
•  Casting/ Forgings 

 Awards 

 FY2019- 20 

•  HAL entered SCOPE Corporate Dispatches Excellence Award 2019 on August 3, 2019 at New Delhi. 
•  HAL entered Karnataka State Export Award for the time 2016- 17 under the PSU order 
•  HAL was conferred with Governance Now 7th 146 award for ‘ Research and Innovation ’ on February 19, 2020. 

Peers

 Strengths

• The company has shown a good profit growth of 29.43% over the past 3 years.
• The company has been maintaining healthy ROE of 24.85% over the past 3 years.
• The company has been maintaining a healthy ROCE of 27.04% over the past 3 years.
• The company is virtually debt free.
• The company has a healthy Interest coverage ratio of 81.31.
• The Company has been maintaining effective average operating margins of 21.91% in the last 5 years.
• The company’s PEG ratio is 0.25.
• The company has good cash flow management; CFO/PAT stands at 1.18.
• The company has a high promoter holding of 75.15%.

 Limitations

• The company has shown poor revenue growth of 7.16% for the past 3 years.
• The company has contingent liabilities of 12,901.14 Cr.
• The tax rate is low at 2.77.