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Today's prices ask more of Hindustan Aeronautics than of Bharat Electronics.
At current prices, buyers of Bharat Electronics are assuming about 25% growth against 16% in its own record; for Hindustan Aeronautics it is 21% against 8%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: Bharat Electronics has grown revenue faster: Bharat Electronics compounded at about 13% a year (FY2018–FY2026) and Hindustan Aeronautics at about 7% (FY2018–FY2026).
- What to watch: order inflow at Bharat Electronics; order book execution at Hindustan Aeronautics.
| Bharat Electronics | Hindustan Aeronautics | |
|---|---|---|
| Price | ₹401 | ₹4,810 |
| Market cap | ₹2.93L Cr | ₹3.22L Cr |
| P/E | 45.8 | 33.5 |
| P/B | 12.21 | 7.84 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
The electronics inside India's defence
Bharat Electronics (BEL) is a state-owned defence electronics company based in Bengaluru and majority-owned by the Government of India. It makes radars, sonars, communication systems, electronic-warfare suites and the electronics for missile systems such as Akash.
India's military aircraft maker
Hindustan Aeronautics (HAL) is a state-owned aerospace company based in Bengaluru and majority-owned by the Government of India. It builds the Tejas light combat aircraft, the Dhruv and Prachand helicopters and trainer aircraft, assembles the Su-30MKI under licence, and makes aero-engines and parts.
02The records side by side
Bharat Electronics has grown revenue faster: Bharat Electronics compounded at about 13% a year (FY2018–FY2026) and Hindustan Aeronautics at about 7% (FY2018–FY2026). By revenue the two are of broadly similar size. Bharat Electronics kept 22.0% of revenue as net profit in FY2026; Hindustan Aeronautics kept 27.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bharat Electronics · Hindustan Aeronautics.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Order inflowNew defence orders set revenue for years ahead.
- MarginsRising localisation and scale have lifted margins steadily.
- Order book executionHAL's revenue for years ahead is already ordered; how fast it delivers decides how fast earnings grow.
- Engine supplyTejas deliveries depend on imported engines, and supply delays have held them back.
05What could go wrong
- One customerRevenue depends on India's defence budget and procurement.
- Order timingLarge orders can slip from one year to the next.
- One customerAlmost all revenue depends on India's defence budget and procurement decisions.
- Programme delaysDevelopment and supply-chain delays are common in aerospace.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bharat Electronics or Hindustan Aeronautics better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bharat Electronics trades at 45.8 times earnings and 12.21 times book value, and Hindustan Aeronautics at 33.5 times earnings and 7.84 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bharat Electronics and Hindustan Aeronautics?
Bharat Electronics (BEL) is a state-owned defence electronics company based in Bengaluru and majority-owned by the Government of India. Hindustan Aeronautics (HAL) is a state-owned aerospace company based in Bengaluru and majority-owned by the Government of India.
Are Bharat Electronics and Hindustan Aeronautics valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Bharat Electronics and Hindustan Aeronautics?
Worked backwards from the share price, Bharat Electronics needs about 25% growth and Hindustan Aeronautics about 21% growth, against 16% and 8% in their own records.