Check Before You Invest : Honeywell Automation India Ltd

Q: Which industry/sub-sector does Honeywell Automation India Ltd belong to?

Honeywell Automation India Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q: Is Honeywell Automation India Ltd a good quality company?

Honeywell Automation India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Honeywell Automation India Ltd undervalued or overvalued?

Honeywell Automation India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 58.77, Historic Median: 80.77. Price to Book, Current: 6.91, Historic Median: 10.87. Price to Sales, Current: 6.59, Historic Median: 10.01. EV to EBITDA, Current: 34.48, Historic Median: 51.25

Q: Is Honeywell Automation India Ltd a good buy now?

Honeywell Automation India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Honeywell Automation India Ltd?

Honeywell Automation India Ltd revenue growth is 3.2% for FY-2025, which is below its 5-year CAGR of 4.95%, indicating slower growth.

Q: Gross Profit margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.1% for FY-2025, which is in line with its 5-year median of 18.1%, indicating stable margins.

Q: Operating Profit Margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.09% for FY-2025, which is in line with its 5-year median of 14.8% indicating stable margins.

Q: Net Profit Margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Net Profit Margin is 12.5% for FY-2025, is in line with its 5-year median of 12.5%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.1, Historic Median: 18.1. Operating Profit Margin (%), Current: 14.09, Historic Median: 14.8. Net Profit Margin (%), Current: 12.5, Historic Median: 12.5

Q: Return on Asset of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Return on Asset is 7.58%, which is below its 5-year historical median of 8.12%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Return on capital employed is 18.72% for FY-2025, which is below its 5-year historical median of 19.72%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Honeywell Automation India Ltd

Snapshot

Q.1 Which industry/sub-sector does Honeywell Automation India Ltd belong to?

Honeywell Automation India Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Honeywell Automation India Ltd a good quality company?

Honeywell Automation India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Honeywell Automation India Ltd undervalued or overvalued?

Honeywell Automation India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	58.77	80.77
Price to Book	6.91	10.87
Price to Sales	6.59	10.01
EV to EBITDA	34.48	51.25

Q.4 Is Honeywell Automation India Ltd a good buy now?

Honeywell Automation India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Honeywell Automation India Ltd?

Honeywell Automation India Ltd revenue growth is 3.2% for FY-2025, which is below its 5-year CAGR of 4.95%, indicating slower growth.

Q.2 Gross Profit margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.1% for FY-2025, which is in line with its 5-year median of 18.1%, indicating stable margins.

Q.3 Operating Profit Margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.09% for FY-2025, which is in line with its 5-year median of 14.8% indicating stable margins.

Q.4 Net Profit Margin of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Net Profit Margin is 12.5% for FY-2025, is in line with its 5-year median of 12.5%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	18.1	18.1
Operating Profit Margin (%)	14.09	14.8
Net Profit Margin (%)	12.5	12.5

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Return on Asset is 7.58%, which is below its 5-year historical median of 8.12%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Return on capital employed is 18.72% for FY-2025, which is below its 5-year historical median of 19.72%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Return on equity is 13.76% for FY-2025, which is below its 5-year historical median of 14.59%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Cash conversion cycle is 17 days, above its 5-year historical median of -5 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.61	0.65
ROE (%)	13.76	14.59
ROCE (%)	18.72	19.72
Cash Conversion Cycle	17 days	-5 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Honeywell Automation India Ltd?

Honeywell Automation India Ltd Debt to cash flow from operations is 0.04, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Honeywell Automation India Ltd?

Q.1 Promoter shareholding and pledge status of Honeywell Automation India Ltd?

Promoters hold 75.00% of the Honeywell Automation India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Honeywell Automation India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Honeywell Automation India Ltd vs industry peers?

Honeywell Automation India Ltd revenue CAGR is 4.95%, compared to the industry median CAGR of 5.73%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.2	5.7
Gross Profit Growth (%)	4.3	21.8
Operating Profit Growth (%)	-0.7	22.5
Net Profit Growth (%)	4.6	35.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.61	1.13
ROE (%)	13.76	4.38
ROCE (%)	18.72	10
Cash Conversion Cycle (days)	17.42	49

Valuation & price assessment

Q.1 Stock return of Honeywell Automation India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.5%	-3.9%	-4.2%	-6.2%

Q.2 Valuation ratios of Honeywell Automation India Ltd vs historical?

The current P/E ratio of 58.77 is lower than its historical median of 80.77, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	58.77	80.77	45.73
Price to Book	6.91	10.87	3.46
Price to Sales	6.59	10.01	1.15
EV to EBITDA	34.48	51.25	19.82

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Check Before You Invest : Honeywell Automation India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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