 "Honeywell launches electronic product lab in Hyderabad")
Share of Honeywell Automation surged up to 7.6 per cent at Rs 53,000, hitting a 52-week high on the BSE in Thursday's intraday trade. The stock price of the company soared after it staged a strong show in its quarterly earnings for the January-March quarter of the fiscal year 2023-24 (Q4FY24).
Honeywell Automation's board announced a final dividend of Rs 100 per share for the fiscal year 2024 while releasing its Q4FY24 results.
During this period, the company recorded a net profit of Rs 148.2 crore, marking a 32 per cent year-on-year increase from Rs 112 crore in the corresponding quarter of the previous year.
Additionally, revenue from operations witnessed growth, standing at Rs 950.7 crore, up 11.8 per cent YoY compared to Rs 849.7 crore in Q4FY23. Earnings before interest tax depreciation and amortisation margin declined 140 basis points YoY to 14.9 per cent.
In a significant personnel update, the Managing Director, Ashish Gaikwad, tendered his resignation to take on the role of India Leader for Industrial Automation (IA) business within Honeywell International, a key strategic business group.
Consequently, Atul Vinayak Pai has been appointed as the new Managing Director and Key Managerial Personnel for a tenure of 5 years within the company.
Analysts at Antique Stock Broking revised their earnings estimates marginally for FY 25 and FY26 at 3 per cent and 12 per cent respectively to factor in improved business performance given strong domestic capex environment expected to play out.
“We maintain HOLD rating on the stock with a revised TP of INR 52,328 valuing it at 60x (earlier 50x) FY26E EPS of INR 872,” analysts at Antique wrote in a report.
Honeywell Automation provides integrated automation and software solutions, including process solutions and building solutions to its clients. It has a product portfolio in environmental and combustion controls, and also provides engineering services in the field of automation and control to global clients.
At 11:24 AM; the stock of the company was trading 5.26 per cent higher at Rs 51,805.40 per share. By comparison, the S&P BSE Sensex fell 0.26 per cent. The company is presently trading at a price to earnings multiple of 98.45 times.
