Reduce Honeywell Automation India, target price Rs 36,942: ICICI Securities

ICICI Securities has reduce call on Honeywell Automation India Ltd. with a target price of Rs 36942. The current market price of Honeywell Automation India is Rs 41889. Time period given by analyst is year when Honeywell Automation India Ltd. price can reach defined target.

Honeywell Automation India Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 36969.28 Crore) operating in Engineering sector.

Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 902.61 Crore, up 16.61 % from last quarter Total Income of Rs 774.05 Crore and down -1.93 % from last year same quarter Total Income of Rs 920.38 Crore. Company reported net profit after tax of Rs 149.89 Crore in latest quarter.

Investment Rationale
Factoring-in the revenue slippage, the brokerage cuts FY21E and FY22E earnings estimates by 16.7% and 15.1% respectively. Given the rich valuation and near-term uncertainty of growth, the brokerage downgrades the stock to REDUCE (from Hold) with a revised target price of Rs36,942 (earlier: Rs40,679).

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2021, while FIIs held 2.1 per cent, DIIs 12.8 per cent and public and others 10.1 per cent.

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