Honeywell Automation India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Honeywell Automation India Ltd trades at ₹38,955, in a confirmed uptrend and 3 weeks into that stage. That is +12.9% against its own 200-day average. It sits at 94% of a 52-week range of ₹27,030 to ₹39,655. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 15 straight weeks.

Today the stock is in a confirmed uptrend — week 3 of stage 2, confirmed. At ₹38,955 it trades +12.9% versus its 200-day average and sits at 94% of its 52-week range (₹27,030–₹39,655).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +353% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 15 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 37th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Honeywell Automation India Ltd trades at 61.7× P/E, mid-range by its own standards (37th percentile). Its long-run median P/E is 65.9×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 61.7× is mid-range by its own standards (37th percentile), against a long-run median of 65.9× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +0.3% against a −3.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −2.3%/yr price move, ~+3.1%/yr came from earnings growth and ~−5.4 pp from the multiple (compressing); over 10y, of the +14.9%/yr price move, ~+14.2%/yr came from earnings growth and ~+0.7 pp from the multiple (roughly flat). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Honeywell Automation India Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 16.5% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

45.9/100 — rank 2 of 4 in Electronics - Others · 91% evidence confidence

Honeywell Automation India Ltd scores 45.9 out of 100 against the 4 companies it is compared with in Electronics - Others, ranking 2. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 15.9 + 16.9 + 5.1 + 8 = 45.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Honeywell Automation India Ltd reported ₹1,181 Cr of revenue in the Mar 26 quarter, +6.0% year on year. That is the 6th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.9% a year. The last full year, FY26, came in at ₹4,682 Cr. The last four reported quarters add to ₹4,682 Cr.

Honeywell Automation India Ltd reported ₹1,181 Cr of revenue in the Mar 26 quarter, +6.0% year on year. That is the 6th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.9% a year. The last full year, FY26, came in at ₹4,682 Cr. The last four reported quarters add to ₹4,682 Cr.

FY26 revenue came in at ₹4,682 Cr (+11.7% on the year), capping 10 years at 7.9% compound. The latest quarter (Mar 26) printed ₹1,181 Cr, +6.0% year on year — the 6th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +12.1% growth against the decade's 7.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +11.8% over the last 4 quarters against +7.4%/yr over the last 8 — accelerating; TTM profit +0.6% vs +2.5%/yr — stabilising.

→ Revenue grew — did margins hold as it scaled? Next: 16.0% this quarter (+2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Honeywell Automation India Ltd's operating margin is 16.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0% to 19.0%. The current quarter sits inside that band.

Honeywell Automation India Ltd's operating margin is 16.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0% to 19.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 16.0%, +2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0%–19.0%.

Why the margin moved: operating margin went +1.3 pp year on year while gross margin went +1.4 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +14.3% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Honeywell Automation India Ltd earned ₹160 Cr of net profit in the Mar 26 quarter, +14.3% year on year. Full-year FY26 profit was ₹525 Cr. The 10-year compound rate is 14.0%. That is 13.5% of the quarter's revenue. The same quarter a year earlier earned ₹140 Cr.

Honeywell Automation India Ltd earned ₹160 Cr of net profit in the Mar 26 quarter, +14.3% year on year. Full-year FY26 profit was ₹525 Cr. The 10-year compound rate is 14.0%. That is 13.5% of the quarter's revenue. The same quarter a year earlier earned ₹140 Cr.

Mar 26 profit was ₹160 Cr, +14.3% year on year. On the full year, FY26 printed ₹525 Cr (+0.2%), and the 10-year compound rate is 14.0%.

Why profit moved: revenue contributed +6.0% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +0.5% vs revenue +12.1%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 88% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 88% of Honeywell Automation India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹493 Cr of operating cash against ₹525 Cr of profit. After ₹54.0 Cr of capital spending, ₹439 Cr was left as free cash.

FY26: operating cash of ₹493 Cr against reported profit of ₹525 Cr, leaving free cash of ₹439 Cr after ₹54.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 88% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 88%: the cash cycle stretched 112 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a −12-day cycle and ₹214 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Honeywell Automation India Ltd's cash conversion cycle runs −12 days in FY26, up from −124 days in FY21. Capital spending ran ₹214 Cr over the last 3 years. At FY26 sales of ₹4,682 Cr each day of that cycle holds about ₹12.8 Cr, so roughly ₹−154 Cr sits inside the business at any moment.

FY26: debtors at 90 days, inventory at 27 days — roughly 0.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −12 days, looser than FY21's −124.

The full loop: cash goes out to suppliers and production on day 0; stock waits 27 days to sell; customers pay about 90 days after that; and suppliers themselves are paid at 130 days — netting out to the −12-day cycle.

In money terms: at FY26 sales of ₹4,682 Cr, each day of the cycle holds about ₹12.8 Cr — so the −12-day loop keeps roughly ₹−154 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹214 Cr over the last 3 fiscal years against ₹162 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹3.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 17% and the ROIC − WACC spread is +41.3 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Honeywell Automation India Ltd earns a ROCE of 17% in FY26. That is up from a trough of 17% in Dec 13. Return on invested capital clears the cost of that capital by +41.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 11.2% net margin on 0.75× asset turns.

FY26 ROCE is 17%, recovered from a Dec 13 trough of 17% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 11.2% net margin × 0.75× asset turns × 1.40× balance-sheet leverage ≈ 11.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 53.3% − 12.0% = a +41.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.02.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Honeywell Automation India Ltd carries total debt of ₹111 Cr against shareholder equity of ₹4,463 Cr as of Mar 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.02 in FY22 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹111 Cr against shareholder equity of ₹4,463 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.02 (FY22) to 0.02 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions added 1.2 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.2 points of Honeywell Automation India Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 3.9% of the company. Domestic institutions moved −1.1 points over the same window, to 11.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.2 points over 8 quarters to 3.9%; Domestic institutions: −1.1 points over 8 quarters to 11.3%; Promoters: +0.0 points over 8 quarters to 75.0%.

Why the register moved: foreign institutions drove it (+1.2 points), absorbed on the other side by domestic institutions (−1.1 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Honeywell Automation India Ltd: the Z-score reads 13.47. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 13.47 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 13.47.

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