Shares of Honeywell Automation surged 10.16% or ₹ 3805.05 apiece on Thursday’s early trades to reach an intraday high of ₹ 41258.80 apiece on the National Stock Exchange (NSE) after the company reported robust results for the quarter and year ended March 31, 2023. At 12:38 PM, its shares were trading 9.07% higher at ₹ 40851.00 apiece.
According to an exchange filing, the company reported a 54.16% increase in its net profit to ₹ 112.03 crores for the January to March quarter of 2023 (Q4FY23) from ₹ 72.67 crores reported in the corresponding period a year ago (Q4FY22). Its revenue from operations increased to ₹ 849.68 crores in Q4FY23, against ₹ 667.98 crores in Q4FY22.
For the entire financial year (FY23), Honeywell Automation reported a 29.16% growth in its net profit to ₹ 438.01 crores against ₹ 339.13 crores in the previous financial year (FY22). The company’s revenue climbed to ₹ 3,447.59 crores for the entire year (FY23), against ₹ 2,948.32 crores in the previous year (FY22).
The company’s board has recommended a dividend of ₹ 95 per equity share of the face value of ₹ 10 each, subject to approval by shareholders of the company at its AGM on August 11, 2023. The said dividend, if declared, shall be paid on August 25, 2023.
Honeywell Automation India Ltd was started as a joint venture between the Tata Group and Honeywell. In 2004, Honeywell Asia Pacific Inc. bought the Tata Group’s 39.54% stake and renamed the company Honeywell Automation. The company is primarily engaged in the business of automation and control systems on a turnkey basis. This includes manufacturing of electronic systems and components, repair and maintenance and trading of machinery equipment and supplies.
With a market capitalization of ₹ 33,115 crores, Honeywell Automation is a mid-cap stock. It has a return on equity of 12.52% and an ideal debt-to-equity ratio of 0.02. Its shares are reading at a price-to-earnings ratio of 83.07, which is higher than the industry average of 22.13, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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