HONAUT - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.4
| Stock Code | HONAUT | Market Cap | 29,835 Cr. | Current Price | 33,750 ₹ | High / Low | 43,800 ₹ |
| Stock P/E | 57.8 | Book Value | 4,738 ₹ | Dividend Yield | 0.31 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 35,327 ₹ | DMA 200 | 37,343 ₹ |
| Chg in FII Hold | 0.24 % | Chg in DII Hold | -0.16 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 125 Cr. |
| RSI | 33.5 | MACD | -521 | Volume | 2,207 | Avg Vol 1Wk | 2,889 |
| Low price | 31,025 ₹ | High price | 43,800 ₹ | PEG Ratio | 3.70 | Debt to equity | 0.02 |
| 52w Index | 21.3 % | Qtr Profit Var | 3.82 % | EPS | 584 ₹ | Industry PE | 33.2 |
📊 Honeywell Automation India (HONAUT) shows limited potential for swing trading at present. The stock is trading below both its 50 DMA (₹35,327) and 200 DMA (₹37,343), reflecting bearish technical signals. RSI at 33.5 indicates oversold conditions, while MACD negative (-521) confirms weak momentum. An optimal entry would be near ₹33,000–₹33,200. If already holding, consider exiting around ₹35,000–₹35,500, where resistance from DMA levels is expected.
Positive
- ✅ EPS of ₹584 supports strong profitability.
- ✅ ROCE (18.4%) and ROE (13.7%) show decent capital efficiency.
- ✅ Debt-to-equity ratio of 0.02 indicates very low leverage risk.
- ✅ FII holdings increased by 0.24%, showing slight foreign investor confidence.
Limitation
- ⚠️ High P/E of 57.8 compared to industry average of 33.2 suggests overvaluation.
- ⚠️ PEG ratio of 3.70 indicates growth is not keeping pace with valuation.
- ⚠️ Dividend yield of 0.31% is very low, offering limited income for investors.
- ⚠️ Trading below DMA levels signals weak technical momentum.
- ⚠️ Low trading volume (2,207 vs 2,889 average) shows reduced market participation.
Company Negative News
- ❌ Sequential decline in PAT (₹125 Cr. → ₹120 Cr.) shows short-term earnings pressure.
- ❌ Bearish technical indicators with MACD negative and RSI oversold.
Company Positive News
- 🌟 Strong EPS reflects profitability despite valuation concerns.
- 🌟 Low debt levels ensure financial stability.
- 🌟 Modest quarterly profit growth (+3.82%) provides some earnings support.
Industry
- 🏭 Automation & industrial technology industry trades at PE of 33.2, lower than HONAUT’s PE of 57.8, suggesting relative overvaluation.
- 🏭 Sector growth driven by digital transformation and industrial automation demand supports long-term prospects.
Conclusion
📌 Honeywell Automation India is fundamentally strong but technically weak in the short term. Entry near ₹33,000–₹33,200 is optimal, with exit around ₹35,000–₹35,500. Traders should be cautious of high valuation and weak momentum, while long-term investors may benefit from strong EPS, low debt, and industry tailwinds.
I can also prepare a peer comparison with Siemens or ABB India to highlight relative swing trade opportunities in the automation sector.
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