Honeywell Automation India - Q3 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs48,258, Upside 14%)

Broadly in-line with estimates; Retain BUY

- Domestic revenue CAGR of 16% over FY21E-23E led by, i) Planned investments into Data Centers, Metro, Airport & Smart Infra projects, ii) Focus on double digit connected software growth, iii) Major beneficiary of India's move to build energy security, drive gas-based economy by encouraging digital solutions & iv) Gaining traction from buoyant sectors like Pharma & Chemical sectors via new product launches.

- Export growth supported by, i) Business integration with Parent's entities by leveraging cost efficient services, ii) New portfolios, offerings and geographic expansion supporting Honeywell's global growth agenda & iii) Supply chain localization.

- Asset light scalable model & robust returns (RoE ex-cash ~71%) justify valuations.

Shares of HONEYWELL AUTOMATION INDIA LTD. was last trading in BSE at Rs.41948.8 as compared to the previous close of Rs. 42556.7. The total number of shares traded during the day was 474 in over 327 trades.

The stock hit an intraday high of Rs. 42426 and intraday low of 41160.5. The net turnover during the day was Rs. 19813623.

Source : Equity Bulls

Keywords