On this page ▾
Today's prices ask more of Siemens India than of Hindustan Aeronautics.
At current prices, buyers of Hindustan Aeronautics are assuming about 21% growth against 8% in its own record; for Siemens India it is 35% against 14%. 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: Hindustan Aeronautics is worth about 2.5 times Siemens India on the stock market.
- Record: On revenue the two have grown at much the same pace: Hindustan Aeronautics compounded at about 7% a year (FY2018–FY2026) and Siemens India at about 9% (FY2018–FY2026).
- What to watch: order book execution at Hindustan Aeronautics; industrial capex at Siemens India.
| Hindustan Aeronautics | Siemens India | |
|---|---|---|
| Price | ₹4,810 | ₹3,660 |
| Market cap | ₹3.22L Cr | ₹1.30L Cr |
| P/E | 33.5 | 47.4 |
| P/B | 7.84 | 9.41 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
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.
Automation, rail and infrastructure
Siemens Ltd is the Indian listed arm of Germany's Siemens AG, which owns the majority. It sells factory-automation systems, electrical and building products, smart-grid equipment and rail technology, including locomotives and signalling.
02The records side by side
On revenue the two have grown at much the same pace: Hindustan Aeronautics compounded at about 7% a year (FY2018–FY2026) and Siemens India at about 9% (FY2018–FY2026). By revenue, Hindustan Aeronautics is about 1.3 times the size of Siemens India. Hindustan Aeronautics kept 27.5% of revenue as net profit in FY2026; Siemens India kept 11.1% 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 · Siemens India.
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.
- Industrial capexFactory and infrastructure investment drives demand.
- Rail ordersLarge locomotive and signalling orders add long-term 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.
- Capex slowdownsWeaker private investment hits orders.
- Related-party pricingDealings with the parent affect margins.
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 Siemens India 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 Siemens India at 47.4 times earnings and 9.41 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 Siemens India?
Hindustan Aeronautics (HAL) is a state-owned aerospace company based in Bengaluru and majority-owned by the Government of India. Siemens Ltd is the Indian listed arm of Germany's Siemens AG, which owns the majority.
Are Hindustan Aeronautics and Siemens India valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Hindustan Aeronautics and Siemens India?
Worked backwards from the share price, Hindustan Aeronautics needs about 21% growth and Siemens India about 35% growth, against 8% and 14% in their own records.