Buy Honeywell Automation India, target price Rs 45000: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Honeywell Automation India with a target price of Rs 45000. The current market price of Honeywell Automation India is Rs 39981.6.

Honeywell Automation India, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 35242.05 Crore) operating in Engineering sector.

Honeywell Automation India key Products/Revenue Segments include Electronic Components, Sale of services, Traded Goods, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 876.41 Crore, down -16.13 % from last quarter Total Income of Rs 1044.93 Crore and up 26.43 % from last year same quarter Total Income of Rs 693.21 Crore. Company has reported net profit after tax of Rs 112.03 Crore in latest quarter.

The company’s top management includes Mr.Ganesh Natarajan, Mr.Ashish Gaikwad, Ms.Neera Saggi, Mr.Rajesh Rege, Mr.Ashish Modi, Mr.Atul Pai. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 1 Crore shares outstanding.

Investment Rationale
The brokerage retains its Buy rating on the stock with an unchanged PT of Rs. 45,000, as improving growth prospects across end-user industries, asset-light business model, strong parentage, and cash and bank balance of Rs. 2,380 crore justify the stock’s premium valuation.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 31-Mar-2023, while FIIs owned 2.86 per cent, DIIs 12.4 per cent.