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Hindustan AeronauticsNSE:HAL +0.10%93 Return-on-Tangible-Equity is 44.61% as of Mar. 2026, which is 60% above its 10-year median of 27.82. GuruFocus rates NSE:HAL with a GF Score™ of 93/100 and a GF Value™ of ₹4,730.22 (Fairly Valued). The stock has 4 warning signs investors should review. Among 335 Aerospace & Defense companies, Hindustan Aeronautics ranks better than 76.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hindustan Aeronautics's annualized net income for the quarter that ended in Mar. 2026 was ₹167,843 Mil. Hindustan Aeronautics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹376,282 Mil. Therefore, Hindustan Aeronautics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 44.61%.
The historical rank and industry rank for Hindustan Aeronautics's Return-on-Tangible-Equity or its related term are showing as below:
NSE:HAL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 24.52 Med: 27.82 Max: 33.7
Current: 26.28
During the past 13 years, Hindustan Aeronautics's highest Return-on-Tangible-Equity was 33.70%. The lowest was 24.52%. And the median was 27.82%.
NSE:HAL's Return-on-Tangible-Equity is ranked better than 76.42% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs NSE:HAL: 26.28
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hindustan Aeronautics Return-on-Tangible-Equity Related Terms
Hindustan Aeronautics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hindustan Aeronautics's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:HAL vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Hindustan Aeronautics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hindustan Aeronautics Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hindustan Aeronautics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hindustan Aeronautics's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 44.61% mean?
Hindustan Aeronautics (NSE:HAL) has a Return-on-Tangible-Equity of 44.61% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hindustan Aeronautics and its competitors. This is 60% above median its historical median of 27.82. Over the past decade, Hindustan Aeronautics' Return-on-Tangible-Equity has ranged from 24.52 to 33.70. According to the industry distribution chart, Hindustan Aeronautics ranks #79 out of 335 companies in the Aerospace & Defense industry, placing it in the top 23.6%.
Is Hindustan Aeronautics' Return-on-Tangible-Equity too high?
Hindustan Aeronautics' current Return-on-Tangible-Equity of 44.61% is 60% above median its 10-year median of 27.82. Over the past 10 years, this metric has ranged from a low of 24.52 to a high of 33.70. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.10. Hindustan Aeronautics' value of 44.61% is 450.7% above this industry median. Based on the distribution chart, Hindustan Aeronautics ranks #79 out of 335 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Hindustan Aeronautics has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Aeronautics' Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hindustan Aeronautics ranks #79 out of 335 companies for Return-on-Tangible-Equity. This places Hindustan Aeronautics in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.10. Hindustan Aeronautics' value of 44.61% is 450.7% above this benchmark. Historically, Hindustan Aeronautics' own Return-on-Tangible-Equity has ranged from 24.52 to 33.70 over the past decade. While the company's 10-year median is 27.82 vs. the industry median of 8.10, Hindustan Aeronautics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Aeronautics's current Return-on-Tangible-Equity of 44.61% is 450.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hindustan Aeronautics and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Aeronautics's current Return-on-Tangible-Equity is 44.61%, which is 60% above median its own 10-year median of 27.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Aeronautics stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Aeronautics (NSE:HAL) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,730.22, compared to a current price of ₹4,511.30 — trading 4.6% below its estimated fair value. The current Return-on-Tangible-Equity is 44.61%, which is 60% above median its 10-year median of 27.82 and 450.7% above the Aerospace & Defense industry median of 8.10. Hindustan Aeronautics' overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hindustan Aeronautics (NSE:HAL), the current Return-on-Tangible-Equity is 44.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hindustan Aeronautics (NSE:HAL) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Aeronautics stock appears to be undervalued.
The current stock price of ₹4,511.30 is trading 4.6% below its estimated GF Value™ of ₹4,730.22.
GuruFocus considers Hindustan Aeronautics to be Fairly Valued.
Key valuation signals for NSE:HAL:
Return-on-Tangible-Equity: 44.61% (60% above median its 10-year median of 27.82)
GF Value™: ₹4,730.22 vs. price of ₹4,511.30 (4.6% below fair value)
Industry Position: 450.7% above the Aerospace & Defense median (#79 of 335)
No single metric tells the full story. See the NSE:HAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Aeronautics Ltd operates in the aerospace and defense sector. The company is engaged in the design, manufacturing, and development of products like aircraft, helicopters, systems and accessories, power plants, avionics, materials like castings, rolled rings, rubber products, and aerospace which include structures, tanks, and cryogenic engines. Geographically the company derives revenue from India and other countries, of which a majority of revenue is generated from India.
93GF Score
Get the complete analysis for NSE:HAL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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