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Honeywell Automation India
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Honeywell Automation India Ltd (HAIL) is a market leader in Electronics-Instrumentation and Process Control Equipment industry. HAIL is leading provider of integrated automation and software solution that improves productivity enhancing comfort and ensuring the safety and security to homes and business premises. The Company's main products are distributed control systems, building control systems and smart transmitters. The Company is engaged primarily in the business of Automation & Control systems on turnkey basis and otherwise.
HAIL incorporated in January 13th, 1984 as Tata Process Controls Private Ltd in Maharashtra. The Company became as a Public Limited Company in May 1987. Initially, the Company promoted by Tata Group. Thereafter it was promoted as a 40:40 Joint Venture Company between Tata Group and Honeywell Asia Pacific Inc, USA. In 2004, Tata Group sold its share holding 40.62 per cent in favor of its foreign joint venture partner. Now Honeywell Asia Pacific Inc, holds 81.24 per cent of Equity Shares of the Company.
Honeywell has set up an impressive 36,000 square feet state-of-the-art manufacturing, design and engineering facilities in the industrial city of Pune in 1988. It is equipped with system integrated services, testing facilities, systems assembly & staging centre, printed wiring assembly manufacturing facility and a smart technology centre.
In March 1993, the company came out with a Right Issue of 2080000 equity shares at a premium of Rs. 25 per share, aggregating Rs. 7.28 crores to part finance normal capital expenditure and long term working capital requirements, totaling Rs. 13.8 crores. The issue was fully subscribed. The allotment of the equity was made in May, 1993.
In 1993-94, the company was awarded the prestigious ISO 9001 certificate. The certification covers the entire of its operations, from design to production, installation, commissioning, and extends into service support functions. The company was the first one and only company in India in the field of Industrial Automation and Control to be awarded this certification.
The company has diversified its operations. It has also setup Software Technology Park (STP) in Pune and are now well established. In 1998-99 the STP operations are expanded at Chennai.
In 2003, the Company's GPS Manufacturing was certified by the DRDO, the premier defense research organization in India. HAIL is also the first automation company in India to have received a double certification of ISO 14001 and OHSAS 18001. It reflects company's commitment towards quality services to its customer.
In 2003-04, Honeywell decided to expand its existing facility to accommodate additional 300 people. It started to construct a new building in the existing premises. A state of the art Experion (new control system) testing centre will be housed in this building.
During the year 2005, Honeywell completed construction of new building, which has provided additional seating space for 425 people and also provides space for the test labs. The company has also set up a new Electronic Hardware Technology Park (EHTP), to facilitate manufacturing and export of Electronic Systems. It launched a new business called Honeywell Security Group (HSG) in 2005, which offers various Electronic security products and systems through a network of channel partners.
In 2006, Honeywell made major capital investment to expand manufacturing and office space.
During year 2019, Honeywell Asia Pacific Inc. (HAPI) was merged into HAIL Mauritius Limited, resulting in change in the immediate promoter of the Company, and an inter-se transfer of 6,631,142 equity shares aggregating to 75% of the shareholding in the Company, from HAPI to HAIL Mauritius.
Honeywell Automation India share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Honeywell Automation India indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Honeywell Automation India is valued compared to its competitors.
Honeywell Automation India PE ratio helps investors understand what is the market value of each stock compared to Honeywell Automation India 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Honeywell Automation India evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Honeywell Automation India generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Honeywell Automation India in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Honeywell Automation India shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Honeywell Automation India compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Honeywell Automation India over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Honeywell Automation India helps investors get an insight into when they can enter or exit the stock. Key components of Honeywell Automation India Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Honeywell Automation India shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Honeywell Automation India ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Honeywell Automation India provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Honeywell Automation India highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Honeywell Automation India .
The balance sheet presents a snapshot of Honeywell Automation India ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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