HONAUT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | HONAUT | Market Cap | 29,289 Cr. | Current Price | 33,062 ₹ | High / Low | 41,600 ₹ |
| Stock P/E | 57.1 | Book Value | 4,738 ₹ | Dividend Yield | 0.32 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 33,720 ₹ | DMA 200 | 36,200 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.46 % | PAT Qtr | 129 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 48.6 | MACD | -187 | Volume | 2,657 | Avg Vol 1Wk | 6,110 |
| Low price | 30,590 ₹ | High price | 41,600 ₹ | PEG Ratio | 3.66 | Debt to equity | 0.02 |
| 52w Index | 22.4 % | Qtr Profit Var | -2.51 % | EPS | 571 ₹ | Industry PE | 29.4 |
📊 Honeywell Automation India (HONAUT) has strong fundamentals and low debt, but high valuation and weak technical indicators limit short-term upside. The RSI at 48.6 indicates neutral momentum, while MACD (-187) signals bearish sentiment. The optimal entry price would be around ₹32,800–₹33,000, near the support zone. If already holding, consider exiting around ₹35,500–₹36,000, close to the 200 DMA resistance level.
✅ Positive
- ROCE (18.4%) and ROE (13.7%) reflect decent efficiency and profitability.
- Debt-to-equity ratio of 0.02 indicates negligible leverage.
- EPS of ₹571 highlights strong earnings visibility.
- FII holdings increased (+0.46%), showing foreign investor confidence.
- Stock trading near long-term support levels offers potential swing opportunity.
⚠️ Limitation
- High P/E (57.1) compared to industry PE (29.4) suggests overvaluation.
- Dividend yield of 0.32% is modest.
- MACD (-187) indicates weak short-term momentum.
- Quarterly PAT declined from ₹120 Cr. to ₹129 Cr. with -2.51% variation, showing earnings pressure.
- 52-week index at 22.4% indicates the stock is far below its peak.
📉 Company Negative News
- DII holdings decreased (-0.46%), showing reduced domestic institutional support.
- Weak technical indicators suggest limited near-term upside.
📈 Company Positive News
- EPS remains strong, supporting long-term profitability.
- FII inflows highlight foreign investor optimism.
- Low debt levels provide financial flexibility.
🏭 Industry
- Automation and industrial technology sector benefits from rising demand in manufacturing and smart solutions.
- Industry PE at 29.4 highlights HONAUT’s premium valuation.
- Sector outlook remains positive with digital transformation and automation adoption trends.
🔎 Conclusion
HONAUT is a fundamentally strong company with negligible debt and solid earnings, but high valuation and weak technical indicators limit short-term upside. For swing trading, entry near ₹32,800–₹33,000 is favorable, with an exit target around ₹35,500–₹36,000. While long-term fundamentals remain strong, traders should remain cautious due to bearish momentum and valuation risks.