Buy Honeywell Automation India; target of Rs 45,000: Sharekhan

Sharekhan is bullish on Honeywell Automation India has recommended buy rating on the stock with a target price of Rs 45,000 in its research report dated May 19, 2023.

Broker Research

May 24, 2023 / 12:31 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Honeywell Automation India

Q4FY2023 performance was healthy, led by strong improvement in margins and net profit. Revenue increased by 27% y-o-y to Rs. 850 crore. Operating profit increased by 59% y-o-y to Rs. 139 crore. OPM came in higher at 16.3% (up 327 bps y-o-y). Net profit increased by 54% y-o-y to ~Rs. 112 crore.. As per the company’s last media interaction, it expects uptick in execution and growth in top line as there are bright spots and opportunities in global markets. Margins are expected to improve from FY2023 levels, as inflation, chip shortage, and supply-chain issues are easing gradually.

Outlook

We retain our 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.

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