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Business News/ Markets / Honeywell Automation share price jumps 15% from intraday lows: Should you Buy, Sell or Hold the stock post Q4 results?
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Honeywell Automation share price jumps 15% from intraday lows: Should you Buy, Sell or Hold the stock post Q4 results?

Stock Market Today: Honeywell Automation share price that declined more than 5% in the morning trades post Q4 results, however reversed the downward trend and jumped 15% from day's lows to scale new 52-week highs. Should you Buy, Sell or Hold the stocks?

Honeywell Automation share price declines 5% post Q4 resultsPremium
Honeywell Automation share price declines 5% post Q4 results

Stock Market Today: Honeywell Automation share price that declined more than 5% in the morning trades on Thursday to lows of 46,253.20 on the NSE post Q4 results, however jumped 15.6% to 52 week highs of 53,484.55. The Q4 results were announced by Honeywell Automation post market hours on Wednesday.

Honeywell Automation reported net profit  at 148.2 crore for the March'2024 quarter grew 32.3% over 112 Crore in the year ago quarter. Honeywell Automation revenues at 950.7 Crore grew 12% over 849.7 crore in the year ago quarter though declined 11.2% sequentially.

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Analysts at Antique Stock Broking however said that the reported revenues were below their estimates of around 1100 Crore.

The operating performance as per Antique analysts also was lower than their estimates adjusted for one-time employee cost reversal of 27.9 crore. Adjusted Ebitda that stood at around 140 crore, up 2.3% year-on-year was below Antique estimate of around 180 crore and adjusted  Ebitda margin declined 140 basis points to 14.9% against their estimates of 16.4%.

The analysts at Antique also added that the last four years of Honeywell’s operating performance has been under severe pressure with sales seeing CAGR (compound annual growth) of 5% and Ebitda CAGR of negative 3% over FY20–24. the same has been impacted by supply-side challenges as chip shortage hurting execution and adverse revenue mix with exports at 44% in FY20 to 41% in FY23.

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Antique Stock Broking has revised earnings marginally upwards for FY25 and FY26 by 3% and 12% respectively to factor in improved business performance given strong domestic capex environment expected to play out. They  maintain HOLD rating on the stock with a revised Target price of 52,328 valuing at 60 times FY26 earnings per share estimates. 

Management changes 

The company announced that resignation of Ashish Gaikwad, Managing Director of the company has been accepted and Atul Vinayak Pai has been appointed as the Managing Director and Key Managerial Personnel under the Companies Act, 2013.

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Ashish Gaikwad however now has new and broader responsibility at Honeywell, as the India Leader for Industrial Automation (IA) business, one of Honeywell International Inc's strategic business group

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 16 May 2024, 10:01 AM IST
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