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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 517174 | NSE: HONAUT

Honeywell Automation India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 8:33 am

Market Cap 36,719 Cr.
Current Price 41,537
High / Low 59,994/36,238
Stock P/E69.6
Book Value 4,263
Dividend Yield0.24 %
ROCE19.8 %
ROE14.8 %
Face Value 10.0
PEG Ratio22.85

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Honeywell Automation India Ltd

Competitors of Honeywell Automation India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Honeywell Automation India Ltd 36,719 Cr. 41,537 59,994/36,23869.6 4,2630.24 %19.8 %14.8 % 10.0
Industry Average36,719.00 Cr41,537.0069.604,263.000.24%19.80%14.80%10.00

All Competitor Stocks of Honeywell Automation India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6837378606687867941,0188509321,1041,071951960
Expenses567630738581664666887711812966910781806
Operating Profit11710712287122128130139121138161170154
OPM %17%15%14%13%16%16%13%16%13%13%15%18%16%
Other Income22211425294527273340284244
Interest2111111011111
Depreciation13131413121313141414131413
Profit before tax12411412299137159144152139164174197184
Tax %26%25%26%26%26%26%26%26%26%26%27%25%26%
Net Profit92859073102118106112103122128148136
EPS in Rs103.5296.36101.4982.19115.33133.35120.00126.68116.95137.87144.66167.62154.39

Last Updated: October 18, 2024, 12:37 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 18, 2024, 12:37 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,6611,7072,4042,1882,4102,6903,1753,2903,0432,9483,4484,0584,086
Expenses1,5381,5892,1921,9672,1212,3192,6682,6492,4512,5122,9263,4633,463
Operating Profit123118212221289371506641592436521595623
OPM %7%7%9%10%12%14%16%19%19%15%15%15%15%
Other Income1119-1824372971978482128143154
Interest00033461099694
Depreciation14141715161516414952525453
Profit before tax119123177226307381555687618458591675720
Tax %29%30%36%38%45%34%35%28%26%26%26%26%
Net Profit8586114141169250359491460339438501534
EPS in Rs96.3397.45129.16159.69191.65282.45405.86555.88520.32383.57495.39567.10604.54
Dividend Payout %10%10%10%6%5%11%11%13%16%23%19%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)23.68%19.86%47.93%43.60%36.77%-6.31%-26.30%29.20%14.38%
Change in YoY Net Profit Growth (%)0.00%-3.83%28.07%-4.33%-6.83%-43.08%-19.99%55.51%-14.82%

Honeywell Automation India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:5%
3 Years:10%
TTM:3%
Compounded Profit Growth
10 Years:19%
5 Years:7%
3 Years:3%
TTM:19%
Stock Price CAGR
10 Years:20%
5 Years:9%
3 Years:-1%
1 Year:11%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:14%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:34 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital9999999999999
Reserves6967728731,0131,1711,4101,7392,1692,5702,8283,1803,5973,761
Borrowings0000000817456366080
Other Liabilities4975506017407711,0131,1431,1981,2821,1181,2261,2291,214
Total Liabilities1,2021,3311,4831,7621,9512,4322,8913,4573,9354,0114,4504,8955,064
Fixed Assets72658584798485196217181151170183
CWIP03723181422227
Investments00767983780000000
Other Assets1,1301,2631,3151,5971,7872,2692,7973,2473,7163,8284,2974,7234,874
Total Assets1,2021,3311,4831,7621,9512,4322,8913,4573,9354,0114,4504,8955,064

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1719213166215263312330364264410439
Cash from Investing Activity +666-14046-85-172-443-212-307-106-1182,008
Cash from Financing Activity +-11-11-11-13-11-11-34-70-89-99-102-106
Net Cash Flow38186-13819911980-16548-32591902,342

Free Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow123.00118.00212.00221.00289.00371.00506.00560.00518.00380.00485.00535.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days8376528476807282111849983
Inventory Days394033292721232723233325
Days Payable123138114153161201184206225171144120
Cash Conversion Cycle-2-22-28-40-58-100-89-96-92-64-12-12
Working Capital Days733939473421213256605446
ROCE %18%17%26%24%28%30%35%35%26%17%20%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs2.56%2.76%2.87%2.88%3.01%2.86%2.94%3.15%2.91%2.76%2.72%2.68%
DIIs12.38%12.38%12.47%12.45%12.48%12.40%12.44%12.23%11.91%12.20%12.40%12.72%
Public10.05%9.86%9.66%9.66%9.49%9.73%9.62%9.63%10.16%10.03%9.87%9.60%
No. of Shareholders31,63730,55229,10727,55427,65934,14731,94330,94435,49633,18630,02031,097

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life ELSS Tax Saver Fund80,5892.31394.7244,8172024-12-2979.82%
Nippon India Focused Equity Fund73,4524.01359.7644,8172024-12-2963.89%
SBI Magnum Midcap Fund67,7621.49331.8944,8172024-12-2951.2%
Mirae Asset Midcap Fund50,0401.38245.0944,8172024-12-2911.65%
SBI Innovative Opportunities Fund44,8172.69219.5144,8172024-12-290%
Nippon India Multi Cap Fund40,7660.5199.6744,8172024-12-29-9.04%
Nippon India Large Cap Fund40,4110.57197.9344,8172024-12-29-9.83%
SBI Energy Opportunities Fund37,9701.59185.9844,8172024-12-29-15.28%
Kotak Equity Opportunities Fund - Regular Plan37,0000.69181.2244,8172024-12-29-17.44%
Invesco India Contra Fund36,7790.98180.1444,8172024-12-29-17.94%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)567.13495.40383.57520.32555.88
Diluted EPS (Rs.)567.13495.40383.57520.32555.88
Cash EPS (Rs.)630.79554.18442.98575.45602.75
Book Value[Excl.RevalReserv]/Share (Rs.)4097.953606.913209.012917.272464.08
Book Value[Incl.RevalReserv]/Share (Rs.)4097.953606.913209.012917.272464.08
Dividend / Share (Rs.)100.0095.0090.0085.0075.00
Revenue From Operations / Share (Rs.)4611.593899.993335.203442.063721.73
PBDIT / Share (Rs.)832.04732.02583.22761.19831.19
PBIT / Share (Rs.)771.02673.33523.88706.14784.41
PBT / Share (Rs.)766.93668.85517.67699.12776.64
Net Profit / Share (Rs.)569.77495.49383.63520.41555.97
PBDIT Margin (%)18.0418.7617.4822.1122.33
PBIT Margin (%)16.7117.2615.7020.5121.07
PBT Margin (%)16.6317.1415.5220.3120.86
Net Profit Margin (%)12.3512.7011.5015.1114.93
Return on Networth / Equity (%)13.9013.7311.9517.8322.56
Return on Capital Employeed (%)18.4618.4615.9623.3130.30
Return On Assets (%)10.249.848.4511.6314.21
Asset Turnover Ratio (%)0.860.810.740.821.04
Current Ratio (X)3.723.343.232.752.53
Quick Ratio (X)3.593.203.142.682.42
Inventory Turnover Ratio (X)10.8411.1712.8611.7512.03
Dividend Payout Ratio (NP) (%)16.7518.1622.1514.418.09
Dividend Payout Ratio (CP) (%)15.1316.2419.1913.037.46
Earning Retention Ratio (%)83.2581.8477.8585.5991.91
Cash Earning Retention Ratio (%)84.8783.7680.8186.9792.54
Interest Coverage Ratio (X)203.39163.4193.91108.36106.95
Interest Coverage Ratio (Post Tax) (X)140.28111.6162.7775.0872.54
Enterprise Value (Cr.)31189.7929827.0033006.1540119.4121426.61
EV / Net Operating Revenue (X)7.698.6511.1913.196.51
EV / EBITDA (X)42.6046.0964.0259.6229.16
MarketCap / Net Operating Revenue (X)8.389.3411.8813.786.97
Retention Ratios (%)83.2481.8377.8485.5891.90
Price / BV (X)9.4310.1012.3416.2510.53
Price / Net Operating Revenue (X)8.389.3411.8813.786.97
EarningsYield0.010.010.010.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Honeywell Automation India Ltd as of December 31, 2024 is: 44,017.70

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 31, 2024, Honeywell Automation India Ltd is Undervalued by 5.97% compared to the current share price 41,537.00

Intrinsic Value of Honeywell Automation India Ltd as of December 31, 2024 is: 45,358.45

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 31, 2024, Honeywell Automation India Ltd is Undervalued by 9.20% compared to the current share price 41,537.00

Last 5 Year EPS CAGR: 3.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.67%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -51.25, which is a positive sign.
  3. The company has higher reserves (1,983.00 cr) compared to borrowings (29.77 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (2.46 cr) and profit (433.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 43.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Honeywell Automation India Ltd:
    1. Net Profit Margin: 12.35%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.46% (Industry Average ROCE: 19.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.9% (Industry Average ROE: 14.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 140.28
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.59
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 69.6 (Industry average Stock P/E: 69.6)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Honeywell Automation India Ltd. is a Public Limited Listed company incorporated on 13/01/1984 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29299PN1984PLC017951 and registration number is 017951. Currently Company is involved in the business activities of Wholesale trade, except of motor vehiclesan d motorcycles. Company’s Total Operating Revenue is Rs. 2948.32 Cr. and Equity Capital is Rs. 8.84 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Instrumentation & Process Control56 & 57, Hadapsar Industrial Estate, Pune Maharashtra 411013HAIL.InvestorServices@Honeywell.com
https://www.honeywell.com/in/en/hail
Management
NamePosition Held
Dr. Ganesh NatarajanChairman(NonExe.&Ind.Director)
Mr. Atul PaiManaging Director
Mr. Ashish ModiNon Executive Director
Mr. Brian RudickNon Executive Director
Mr. Thaj MathewNon Executive Director
Ms. Neera SaggiIndependent Director

FAQ

What is the latest intrinsic value of Honeywell Automation India Ltd?

The latest intrinsic value of Honeywell Automation India Ltd as on 31 December 2024 is ₹44017.70, which is 5.97% higher than the current market price of ₹41,537.00. The stock has a market capitalization of 36,719 Cr. and recorded a high/low of 59,994/36,238 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,761 Cr and total liabilities of ₹5,064 Cr.

What is the Market Cap of Honeywell Automation India Ltd?

The Market Cap of Honeywell Automation India Ltd is 36,719 Cr..

What is the current Stock Price of Honeywell Automation India Ltd as on 31 December 2024?

The current stock price of Honeywell Automation India Ltd as on 31 December 2024 is 41,537.

What is the High / Low of Honeywell Automation India Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Honeywell Automation India Ltd stocks is 59,994/36,238.

What is the Stock P/E of Honeywell Automation India Ltd?

The Stock P/E of Honeywell Automation India Ltd is 69.6.

What is the Book Value of Honeywell Automation India Ltd?

The Book Value of Honeywell Automation India Ltd is 4,263.

What is the Dividend Yield of Honeywell Automation India Ltd?

The Dividend Yield of Honeywell Automation India Ltd is 0.24 %.

What is the ROCE of Honeywell Automation India Ltd?

The ROCE of Honeywell Automation India Ltd is 19.8 %.

What is the ROE of Honeywell Automation India Ltd?

The ROE of Honeywell Automation India Ltd is 14.8 %.

What is the Face Value of Honeywell Automation India Ltd?

The Face Value of Honeywell Automation India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Honeywell Automation India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE