Leading integrated automation and software solutions provider, Honeywell Automation India Ltd is another example of how staying invested in a stock for a long period of time can help investors reap good returns. The share price of the company surged from ₹161.98 on July 04, 2002, to ₹ 33,100.00 in twenty years.
Investors who had invested ₹1,00,000 in the shares of the company in July 2002 have holdings worth ₹ 2,04,34,620 as the shares gave multibagger returns of 20334.62%.
Honeywell Automation India Limited (HAIL) was started as a joint venture between the Tata Group and Honeywell. Earlier, it was known as Tata Honeywell Limited and each of them had a 39.54% stake in the company. In 2004, Honeywell Asia Pacific Inc. bought Tata’s stake and the name was changed to Honeywell Automation India Limited.
The company provides process solutions, building solutions, building controls, and home comfort controls. Some of its clients include Reliance, Vedanta, HPCL, TCS, Delhi Airport, AIIMS, ITC Hotel, Kolkata airport, Mahindra & Mahindra, and Kirloskar Oil Engines.
The shares had reached their 52-week high of ₹47,275.95 this year. At that point, they gave multibagger returns of 29086.29%. If ₹ 1,00,000 was invested in the shares at that point, the value of the holdings would have been ₹ 2,91,86,290 when the shares reached their 52-week high this year.
Honeywell Automation India Limited is a large-cap company with a market capitalization of 29,336 crores. It is trading at a TTM PE of 86.69 and has a TTM EPS of 383.57. Its promoter Honeywell International Inc USA is the ultimate holding company of Honeywell Automation Ltd. It holds a 75% stake in HAIL, through its subsidiary in Mauritius. It has a return on equity of 11.95%, an ideal debt to equity ratio of 0.00 and a good current ratio of 3.32.
The company’s net profit declined 26.28% to ₹ 339.13 crores in the year ended March 2022 as against ₹ 460.04 crores during the previous year ended March 2021. Its sales declined 3.10% to ₹ 2948.32 crores in the year ended March 2022 as against ₹3042.78 crores during the previous year ended March 2021.
Written By – Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
