NSEI:HONAUT

Stock Analysis Report

Honeywell Automation India

Executive Summary

Honeywell Automation India Limited provides integrated automation and control systems in India and internationally.


Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Honeywell Automation India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HONAUT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

HONAUT

-3.8%

IN Electronic

-0.07%

IN Market


1 Year Return

56.7%

HONAUT

44.5%

IN Electronic

9.5%

IN Market

Return vs Industry: HONAUT exceeded the Indian Electronic industry which returned 44.5% over the past year.

Return vs Market: HONAUT exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

HONAUTIndustryMarket
7 Day-5.7%-3.8%-0.07%
30 Day26.0%21.7%-1.3%
90 Day20.8%17.2%1.9%
1 Year57.0%56.7%45.8%44.5%11.5%9.5%
3 Year243.6%242.1%106.4%101.1%23.6%16.7%
5 Year274.4%271.7%83.6%76.9%35.5%22.9%

Price Volatility Vs. Market

How volatile is Honeywell Automation India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Honeywell Automation India undervalued compared to its fair value and its price relative to the market?

65.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HONAUT (₹34904.55) is trading above our estimate of fair value (₹4081.22)

Significantly Below Fair Value: HONAUT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HONAUT is poor value based on its PE Ratio (66.5x) compared to the Electronic industry average (13.8x).

PE vs Market: HONAUT is poor value based on its PE Ratio (66.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HONAUT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HONAUT is overvalued based on its PB Ratio (16x) compared to the IN Electronic industry average (0.7x).


Next Steps

Future Growth

How is Honeywell Automation India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.5%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Honeywell Automation India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Honeywell Automation India performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HONAUT has high quality earnings.

Growing Profit Margin: HONAUT's current net profit margins (13.7%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: HONAUT's earnings have grown significantly by 31.6% per year over the past 5 years.

Accelerating Growth: HONAUT's earnings growth over the past year (39.4%) exceeds its 5-year average (31.6% per year).

Earnings vs Industry: HONAUT earnings growth over the past year (39.4%) exceeded the Electronic industry 10.6%.


Return on Equity

High ROE: HONAUT's Return on Equity (24.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Honeywell Automation India's financial position?


Financial Position Analysis

Short Term Liabilities: HONAUT's short term assets (₹27.7B) exceed its short term liabilities (₹12.2B).

Long Term Liabilities: HONAUT's short term assets (₹27.7B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: HONAUT is debt free.

Reducing Debt: HONAUT had no debt 5 years ago.

Debt Coverage: HONAUT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HONAUT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HONAUT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HONAUT's debt is covered by short term assets.


Next Steps

Dividend

What is Honeywell Automation India's current dividend yield, its reliability and sustainability?

0.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HONAUT's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: HONAUT's dividend (0.13%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: HONAUT is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: HONAUT is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HONAUT is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HONAUT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

M. Gaikwad (50yo)

3.3yrs

Tenure

₹30,926,000

Compensation

Mr. M. Ashish Gaikwad has been Managing Director and Additional Director at Honeywell Automation India Limited since October 1, 2016 and serves as Head of Process Solutions. Mr. Gaikwad served as General M ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD430.53K) is below average for companies of similar size in the Indian market ($USD757.46K).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Gaikwad
MD, Head of Process Solutions & Non-Independent Executive Director3.3yrs₹30.93m0.0023% 7.0m
Amit Tantia
Chief Financial Officer1.8yrs₹9.02m0.000010% 30.9k
Farah Irani
Compliance Officer & Company Secretary2.8yrs₹2.32mno data
Amita Rajora
Acting Legal Leader0yrsno datano data
Abhishek Kumar
Head of Human Resources0yrsno datano data
Aseem Joshi
Head of Building Solutions0yrs₹9.90mno data
K. Shashikant
Commercial Head of Environmental & Energy Solutions0yrsno datano data
Nikhil Thakkar
Head of Audit & Internal Controls0yrsno datano data
Gajanan Lahane
Head of Global Manufacturing0yrsno datano data
Rahul Sharma
Head of Global Services0yrsno datano data

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: HONAUT's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Gaikwad
MD, Head of Process Solutions & Non-Independent Executive Director3.3yrs₹30.93m0.0023% 7.0m
Neera Saggi
Independent Non-Executive Director1yrs₹470.00kno data
Nisha Gupta
Non-Independent Non-Executive Director5.8yrsno datano data
Suresh Senapaty
Independent Non-Executive Chairman3.9yrs₹2.82mno data
Ashish Modi
Additional Non-Executive Director0.3yrs₹9.80mno data
Akshay Bellare
Additional Non-Executive Director0.3yrsno datano data

2.2yrs

Average Tenure

50yo

Average Age

Experienced Board: HONAUT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Honeywell Automation India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Honeywell Automation India Limited
  • Ticker: HONAUT
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: ₹308.651b
  • Shares outstanding: 8.84m
  • Website: https://www.honeywell.com/worldwide/en-in/hail

Number of Employees


Location

  • Honeywell Automation India Limited
  • 56 & 57, Hadapsar Industrial Estate
  • Pune
  • Maharashtra
  • 411013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517174BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
HONAUTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

Honeywell Automation India Limited provides integrated automation and control systems in India and internationally. The company offers process control, safety, optimization, and simulation, as well as connected Industrial Internet of Things and cyber security solutions. It also provides building management systems, fire detection and alarm systems, access control systems, video surveillance systems, and integrated security and building management systems, as well as aftermarket services for various control systems; and utilities’ operations and maintenance services for mechanical and electrical systems in buildings. In addition, the company offers products in environmental and combustion controls, and sensing and control, as well as engineering services in the field of automation and control. The company was incorporated in 1984 and is based in Pune, India. Honeywell Automation India Limited operates as a subsidiary of Honeywell International Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:14
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.