Honeywell Automation India Limited (HONAUT) AI Stock Analysis

• Market Cap: ₹258.33B
• Dividend Yield: 0.32%
• Average Volume (3M): 166.00
• Price to Earnings (P/E): 59.8
• Beta (1Y): 0.71
• Revenue Growth: 13.28%
• EPS Growth: -2.20%
• Country: IN
• Employees: 3,096
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 150.34
• Shares Outstanding: 8,841,523
• 10 Day Avg. Volume: 134
• 30 Day Avg. Volume: 166
• PEG Ratio: 12.86
• Price to Book (P/B): 7.38
• Price to Sales (P/S): 7.12
• P/FCF Ratio: 74.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 577.97
• Revenue Forecast (FY): ₹46.98B

• Rating: 74 Outperform
• Price Target: ₹32,724.00 ▼(-4.04% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Honeywell Automation India Limited demonstrates strong financial performance with robust balance sheet metrics and consistent revenue growth. However, the technical analysis indicates a neutral to slightly overbought condition, and the high P/E ratio suggests potential overvaluation. These factors contribute to a balanced overall stock score.

Positive Factors

Strong balance sheet

The company reports a high equity ratio and very low debt, giving it durable financial resilience. Low leverage reduces refinancing and interest risks, supports capital allocation for projects or services, and preserves flexibility to pursue growth or weather sector downturns over months.

Consistent revenue growth

Multi-year top-line expansion shows sustained demand for automation and services. Recurring aftermarket and services revenue plus steady project wins imply expanding market penetration and a growing installed base that supports predictable medium-term revenue.

Strong cash generation

Robust operating cash conversion and positive free cash flow provide durable funding for maintenance, upgrades, and selective investments without raising external capital. This supports service-led recurring revenue and buffers against project timing variability.

Negative Factors

Margin pressure

Declining operating margins point to longer-term cost or mix pressures that can erode profitability if persistent. Sustained margin compression could reduce reinvestment capacity and weaken returns on new projects absent structural cost control or pricing improvements.

EPS contraction

Negative EPS growth indicates recent bottom-line stress despite revenue growth. Continued EPS contraction can signal rising costs or lower operating leverage, limiting capacity to increase dividends or fund growth from retained earnings over the medium term.

Cyclical, project-driven revenue

Heavy exposure to industrial capex cycles makes revenue lumpy and timing-dependent. Project-led sales create visibility challenges and can amplify downturns in client capex, increasing medium-term volatility in orders, margins and cash flow despite a solid installed base.

Honeywell Automation India Limited Business Overview & Revenue Model

Company Description

Honeywell Automation India Limited provides integrated automation and control systems in India and internationally. The company manufactures and sells electronic systems and components; and trades in, repairs, and maintains machinery, equipment, and supplies. It also provides building management systems, fire detection and alarm systems, access control systems, video surveillance systems, and integrated security and building management systems, as well as aftermarket services for various control systems; and utilities' operations and maintenance services for mechanical and electrical systems in buildings. In addition, the company offers engineering, application software development, project management services, solution consulting, site commissioning for projects, life cycle services, connected process, and building solutions; lifecycle and technology migration services; and industrial cyber security services. Further, it engages in the sensing and internet of things activities. The company was incorporated in 1984 and is based in Pune, India. Honeywell Automation India Limited is a subsidiary of HAIL Mauritius Limited.

How the Company Makes Money

HONAUT primarily earns revenue by selling and implementing automation and control solutions and providing associated services. Key revenue streams include: (1) Products and systems sales: supply of distributed control systems (DCS), programmable logic controllers (PLC) and other control hardware, field instruments (sensors/transmitters), industrial safety products, and building automation products; revenue is recognized from product delivery and/or project milestones depending on contract terms. (2) Project/solution engineering and integration: design, engineering, configuration, integration, installation/commissioning, and project management for automation and building management projects; these are typically contracted as turnkey or milestone-based projects for industrial plants and large facilities. (3) Software and digital solutions: licensing or subscription for industrial software/asset performance and plant operations solutions where applicable; specific product-level monetization details not available: null. (4) Aftermarket, maintenance and lifecycle services: annual maintenance contracts (AMCs), troubleshooting, spares, upgrades/retrofits, calibrations, and other support services that create recurring revenue over the installed base. (5) Exports/related-party and channel-driven sales: where the company supplies goods/services to customers outside India and/or sells via distributors and system integrators; detailed breakdown of the share and specific related-party arrangements not available: null. Earnings are influenced by the size of the installed base (driving services and spares), large capital expenditure cycles in process industries and infrastructure (driving projects), and execution of long-duration contracts. Specific material partnerships contributing to earnings beyond Honeywell group affiliation are not available: null.

Honeywell Automation India Limited Financial Statement Overview

Summary

Honeywell Automation India Limited exhibits strong financial health across all verticals. The income statement reflects consistent revenue growth and stable profitability. The balance sheet is characterized by low leverage and high equity, ensuring financial resilience. Strong cash flow metrics further underline the company's capacity to fund operations and growth initiatives.

Income Statement

Honeywell Automation has demonstrated strong revenue growth over the years, with a consistent increase in total revenue from 2022 to 2025. The gross profit margin has been stable, indicating effective cost management. However, the EBIT and EBITDA margins have declined slightly, suggesting increased operational expenses or other cost pressures. The net profit margin remains solid, reflecting effective bottom-line management.

Balance Sheet

The balance sheet is robust, with a high equity ratio indicating strong financial stability. The company's debt-to-equity ratio is very low, reflecting minimal leverage and low financial risk. Return on equity is healthy, showcasing efficient use of equity to generate profits. Overall, the balance sheet positions the company well for future growth and risk management.

Cash Flow

The cash flow statement reflects a positive trajectory in free cash flow, although there was a slight decline from the previous period. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio also supports the company's ability to generate sufficient cash flow, maintaining financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.38B	41.90B	40.58B	34.48B	29.48B	30.43B
Gross Profit	14.62B	16.25B	17.29B	16.03B	13.90B	14.99B
EBITDA	6.04B	5.66B	5.72B	5.00B	4.12B	5.80B
Net Income	5.16B	5.24B	5.01B	4.38B	3.39B	4.60B
Balance Sheet
Total Assets	57.41B	56.05B	48.95B	44.51B	40.11B	39.53B
Cash, Cash Equivalents and Short-Term Investments	35.13B	32.91B	28.22B	23.85B	20.06B	17.96B
Total Debt	1.68B	1.01B	596.00M	363.40M	557.40M	738.90M
Total Liabilities	15.52B	15.66B	12.89B	12.62B	11.74B	13.74B
Stockholders Equity	41.90B	40.38B	36.06B	31.89B	28.37B	25.79B
Cash Flow
Free Cash Flow	2.33B	3.99B	4.07B	3.82B	2.51B	3.16B
Operating Cash Flow	2.42B	4.26B	4.39B	4.10B	2.64B	3.64B
Investing Cash Flow	-2.16B	-142.00M	20.06B	-1.29B	-1.09B	-3.03B
Financing Cash Flow	-1.04B	-1.10B	-1.05B	-1.02B	-985.30M	-894.70M

Honeywell Automation India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34101.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HONAUT, the sentiment is Negative. The current price of 34101.8 is above the 20-day moving average (MA) of 30614.17, above the 50-day MA of 31964.56, and below the 200-day MA of 35724.37, indicating a bearish trend. The MACD of -656.49 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HONAUT.

Honeywell Automation India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HONAUT	74 Outperform	₹258.33B	59.83	―	0.32%	13.28%	-2.20%
CGPOWER	71 Outperform	₹1.11T	89.56	―	0.20%	25.63%	-26.61%
APARINDS	70 Outperform	₹386.31B	40.22	―	0.57%	21.16%	8.27%
POLYCAB	68 Neutral	₹1.11T	46.12	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹842.19B	74.21	―	0.70%	7.26%	3.66%
FINCABLES	66 Neutral	₹134.14B	17.47	―	1.04%	7.42%	-4.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Honeywell Automation India Limited Corporate Events

Honeywell Automation India Closes Trading Window Ahead of Q3, Nine-Month Results

Honeywell Automation India Limited has announced a closure of its trading window for dealing in its equity shares from January 1, 2026 until 48 hours after it declares its financial results for the third quarter and nine months ended December 31, 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. During this period, designated persons, their immediate relatives and other insiders are barred from trading in the company’s shares, underscoring Honeywell Automation India’s adherence to regulatory norms on unpublished price-sensitive information, while the company indicated that the date of the board meeting to review and approve these financial results will be communicated later.