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Honeywell Automation India Ltd. Stock Analysis

Large Cap
Evaluated by 1608 users | BSE: 517174 | NSE: HONAUT |
Consumer Durables - Electronics
Set up in 1987 as a joint venture between the Tata Group and Honeywell with manufacturing, design and engineering facilities in the industrial city of Pune (160 km southeast of Mumbai), Honeywell Automation is today the market leader in most of the business areas it operates in. In 2004...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Honeywell Automation India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.05%18.23%12.6%10.93%17.38%15.05%16.26%19.89%22.51%24.64%
Value Creation Index 0.680.39-0.04-0.17NANANANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3531,6131,6611,7071,9232,1882,4102,6903,1753,290
Y-o-Y Gr. Rt.-19.3%3%2.8%12.7%13.8%10.2%11.6%18%3.6%
Adjusted EPS (Rs.) 121.14119.2794.9291.57130.45159.46200.31289.37397.98539.14
Y-o-Y Gr. Rt.--1.5%-20.4%-3.5%42.5%22.2%25.6%44.5%37.5%35.5%
Book Value per Share (Rs.) 603.27712.95797.68883.45798.071,156.121,332.021,600.441,970.852,457.52
Adjusted Net Profit 10710583.981115141177256352477
Net Op. Cash Flow (Rs. Cr.) 45.6-18.5-17.319210.4166215263312330
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Honeywell Automation India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.4%11.3%10.9%3.6%
Adjusted EPS 18%32.8%39.1%35.5%
Book Value per Share 16.925.222.724.7
Share Price 32.4% 25.8% 23.8% 4.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 22.0418.1212.5710.917.3414.8116.0819.6922.2324.29
Operating Profit Margin (%) 10.788.997.396.948.969.8412.2813.9515.2119.07
Net Profit Margin (%) 7.926.545.054.7466.447.359.5111.0814.49
Debt to Equity 0000000000
Working Capital Days 151185242252195247249259206176
Cash Conversion Cycle 179148-9-16-26-44-49-48
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 75.00%
Institutions 14.61%
Non-Institutions 10.39%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Honeywell Automation India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Honeywell Automation India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Honeywell Automation India Ltd.'s performance infers:

Honeywell Automation India Ltd. earnings have grown by 32.8%, whereas share price has appreciated 25.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Honeywell Automation India Ltd. share prices over the last 10 years. Here is what we found out:

Honeywell Automation India Ltd. share price has appreciated 28.8% annually over the past ten years.

Set up in 1987 as a joint venture between the Tata Group and Honeywell with manufacturing, design and engineering facilities in the industrial city of Pune (160 km southeast of Mumbai), Honeywell Automation is today the market leader in most of the business areas it operates in. In 2004 the joint venture ended, with Honeywell buying out the entire Tata stake.

Honeywell Automation India (HAIL) is a leading provider of integrated automation and software solutions that improve

Set up in 1987 as a joint venture between the Tata Group and Honeywell with manufacturing, design and engineering facilities in the industrial city of Pune (160 km southeast of Mumbai), Honeywell Automation is today the market leader in most of the business areas it operates in. In 2004 the joint venture ended, with Honeywell buying out the entire Tata stake.

Honeywell Automation India (HAIL) is a leading provider of integrated automation and software solutions that improve productivity, enhance comfort and ensure safety and security of homes and business premises. With over 2500 employees and an annual turnover of about Rs. 868 crore, HAIL is headquartered in Pune with 8 offices all over India. HAIL is a listed company on the Indian stock exchanges and is part of Honeywell Inc. the technology leader with 120000 employees across 100 countries worldwide.

Honeywell International is a $36 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London and Chicago Stock Exchanges.

Innovation and adaptability are the hallmarks of HAIL and they aim at creating value for customers in an ever-changing market. The company drives the nation's growth by being responsible to its leadership position in running the 'core' business sectors of the Indian economy, be it infrastructure, petrochemicals, refining, chemicals, mining & metals or automobiles and hospitality.

Honeywell's brands can be seen on the thermostats in buildings, in electronic voting machines, process control systems in refineries and factories or as sensors in automobiles.

HAIL has an impressive 36000 sq ft. state-of-the-art manufacturing facility in Pune, and strict adherence to quality and being receptive to customer needs has helped the Company provide innovative solutions, high-end consulting and engineering designs to organizations, both in India and globally, leading to enormous savings to the customers through better productivity, optimal use of materials and energy, lesser wastage and better maintenance of equipment.

Products and Services offered by the company:

  • Refining, oil and gas, pulp, paper & printing, power generation, power transmission & distribution, chemicals & life sciences, petrochemicals, and metals, minerals and mining.
  • Fire detection systems, security systems - access control systems, CCTV systems & perimeter control systems.a complete range of high quality and optimal cost engineering,
  • Software development & programming and hardware designhome and building control products & solutions.
  • Electromechanical switches, electronic sensors, machine safety, controls, monitoring & lighting: Sensors for test & measurement applications.

Different divisions of the company:

  • Honeywell Process Solutions:  Industry leader in the areas of process knowledge systems, safety systems, simulation technology, wireless field devices, integrated facility and process security systems.
  • Honeywell Building Solutions:  Honeywell Building Solutions (HBS) is the largest and most technically skilled building solutions player in the Indian sub-continent.
  • Global Engineering Services:  Provides a complete range of high quality and optimal cost engineering, software development & programming and hardware design with total focus on quality.
  • Environmental and Combustion Control : In more than 100 million homes and 5 million buildings worldwide, Honeywell's products, components and systems deliver temperature control, comfort, energy conservation and safety. 
  • Sensing and Control: Provides electromechanical and machine safety switches, electronic and test and measurement sensors and vehicle controls, monitoring and lighting products for transportation, aerospace, military, industrial and medical applications.

Honeywell Security Group Protects millions of homes, businesses and government facilities around the world.

Awards & Achievements:

  • It is the first automation and control solutions company in India to receive double certifications of ISO 9001 and OHSAS 18001 certifications.
  • Honeywell Automation India  received the Frost & Sullivan Brand Leadership and the Product Leadership Awards in the Indian DCS Industry 2007
  • Honeywell Safety Manager is first safety system in process industries to Receive NFPA 72 Certification from US certifying body
  • ISCEA awarded the 2007 Ptak Prize to Honeywell, in recognition of significant Supply Chain improvements through Vision, Business Rules, and Technology.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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