HONAUT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a deep-dive fundamental analysis of Honeywell Automation India Ltd (HONAUT), with a numeric rating and strategic investment guidance. I see you're focused on long-term value and timing an entry, so I’ve weighed profitability, capital efficiency, valuation, and business durability to give you a clear verdict. I’ve also incorporated the latest financial updates from September 2025

1

2

.

📊 Fundamental Analysis of Honeywell Automation India Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹125 Cr vs ₹140 Cr — slight decline (↓8.72%), but annual profit rose to ₹523 Cr from ₹501 Cr

2

.

EPS: ₹579 — strong earnings base.

ROE: 13.7%, ROCE: 18.4% — solid, though not exceptional for a premium tech-industrial player.

Leverage & Liquidity

Debt-to-equity: 0.02 — virtually debt-free, excellent financial health.

Dividend Yield: 0.28% — modest, but consistent (₹105/share dividend paid in June 2025)

2

.

Cash Flow

Operating cash flow for FY25: ₹426 Cr — stable, though slightly down from ₹438 Cr in FY24

2

.

Total assets rose to ₹5,604 Cr from ₹4,895 Cr YoY — strong asset growth

2

.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 65.0 Very high vs industry PE of 37.5 — overvalued

P/B Ratio ~8.2 Premium valuation, justified only by brand and earnings quality

PEG Ratio 4.16 Elevated — growth not justifying price

Intrinsic Value ~₹33,000–₹35,000 Below current price — limited upside

🏭 Business Model & Competitive Edge

Segment Focus: Industrial automation, building technologies, and process control — high-margin, mission-critical domains.

Moat: Deep integration with Honeywell global tech stack, long-term contracts, and proprietary platforms.

Growth Drivers

Smart manufacturing, energy efficiency, and digital transformation in industrial setups.

Strong order book and recurring service revenue.

Asset-light model with high scalability.

📈 Technical & Entry Guidance

Current Price: ₹37,600

DMA 50/200: ₹37,631 / ₹38,890 — trading below long-term average, indicating mild weakness.

RSI: 52.7 — neutral zone.

MACD: -256 — bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹34,000–₹36,000 — wait for correction.

Stop Loss: ₹32,000

Target: ₹42,000–₹45,000 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, zero debt, and sector leadership justify long-term holding.

Buy on dips: Preferably near ₹35,000 zone.

Growth Triggers: Industrial digitization, ESG automation demand, and export expansion.

⭐ Fundamental Rating

4.2

Let me know if you’d like a peer comparison with ABB India or Siemens next!

1

NewsBytes

2

Moneycontrol

Edit in a page