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Today's prices ask more of Hindustan Aeronautics than of Larsen & Toubro.
At current prices, buyers of Hindustan Aeronautics are assuming about 21% growth against 8% in its own record; for Larsen & Toubro it is 6% against 16%. 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: Hindustan Aeronautics on discounted cash flow; Larsen & Toubro on estimate withheld.
- Size: Larsen & Toubro is worth about 1.8 times Hindustan Aeronautics on the stock market.
- Record: Larsen & Toubro has grown revenue faster: Hindustan Aeronautics compounded at about 7% a year (FY2018–FY2026) and Larsen & Toubro at about 11% (FY2018–FY2026).
- What to watch: order book execution at Hindustan Aeronautics; order inflow and backlog at Larsen & Toubro.
| Hindustan Aeronautics | Larsen & Toubro | |
|---|---|---|
| Price | ₹4,810 | ₹4,144 |
| Market cap | ₹3.22L Cr | ₹5.70L Cr |
| P/E | 33.5 | 31.9 |
| P/B | 7.84 | 5.22 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Estimate withheld |
01Two businesses
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.
Engineer, builder, IT house and lender
Larsen & Toubro is India's largest engineering and construction company. Its core business wins and delivers large projects — roads, metros, airports, water systems, power transmission, and oil and gas facilities in India and the Middle East. Its hi-tech manufacturing arm makes heavy equipment and defence systems.
02The records side by side
Larsen & Toubro has grown revenue faster: Hindustan Aeronautics compounded at about 7% a year (FY2018–FY2026) and Larsen & Toubro at about 11% (FY2018–FY2026). By revenue, Larsen & Toubro is about 8.6 times the size of Hindustan Aeronautics. Hindustan Aeronautics kept 27.5% of revenue as net profit in FY2026; Larsen & Toubro kept 6.6% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Hindustan Aeronautics · Larsen & Toubro.
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 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.
- Order inflow and backlogMost of L&T's revenue for the next few years is already in its order book. The size and margin of new orders set future earnings.
- Execution marginsConstruction margins are thin, so cost overruns or commodity swings move profit by much more than they move revenue.
05What could go wrong
- One customerAlmost all revenue depends on India's defence budget and procurement decisions.
- Programme delaysDevelopment and supply-chain delays are common in aerospace.
- A slowdown in public capexGovernment infrastructure spending is the biggest single source of domestic orders.
- Working capitalDelayed client payments tie up cash and can strain the balance sheet.
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 Hindustan Aeronautics or Larsen & Toubro 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, Hindustan Aeronautics trades at 33.5 times earnings and 7.84 times book value, and Larsen & Toubro at 31.9 times earnings and 5.22 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 Hindustan Aeronautics and Larsen & Toubro?
Hindustan Aeronautics (HAL) is a state-owned aerospace company based in Bengaluru and majority-owned by the Government of India. Larsen & Toubro is India's largest engineering and construction company.
Are Hindustan Aeronautics and Larsen & Toubro valued the same way?
No. Hindustan Aeronautics is valued on discounted cash flow and Larsen & Toubro on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Hindustan Aeronautics and Larsen & Toubro?
Worked backwards from the share price, Hindustan Aeronautics needs about 21% growth and Larsen & Toubro about 6% growth, against 8% and 16% in their own records.