Honeywell Automation India Ltd.
NSE: HONAUTHoneywell Automation India Ltd.: A 30-second snapshot
Honeywell Automation India trades at ₹28,975, down 15.0% over the past year and 30.1% off its 52-week high, with the price below both the 50-DMA (₹29,700) and 200-DMA (₹33,879). The trailing PE of 50.7x and forward PE of 40.1x stand in contrast to a 5-year earnings CAGR of -8.2% and a quality score of 23/100 — the lowest among its 6 infrastructure-sector peers. Revenue has grown at 7.1% over 5 years while a profit margin of 10.95% and a debt-to-equity of 2.215 characterise a business where top-line expansion has not translated proportionally into earnings or returns on capital.
P/E
50.7
Forward P/E
40.1
ROE
—
Debt / Equity
2.21
Profit Margin
+10.9%
Div. Yield
+0.4%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
36/100
News
1 headlines · 0 positive · 0 negative
Recent context
- ·The sole news item in the measurement window — a Samco list of high-priced NSE stocks published 8 May 2026 — is neutral in sentiment; the near-absence of coverage means no material news catalyst is visible in recent data.
- ·The 10.0% price decline over 3 months and 15.0% decline over 1 year have occurred alongside the stock remaining below the 200-DMA for an extended period, with RSI at 42.32 (neutral range) and the nearest support identified at ₹26,220.
- ·The forward PE of 40.1x against a trailing PE of 50.7x implies the analyst consensus embedded in forward estimates projects meaningful earnings improvement — a view that will be tested against actual results.
Strengths
- +Revenue growth of 7.1% over 5 years indicates the top line has expanded, even as earnings have contracted — pointing to a revenue base that has held ground.
- +Forward PE of 40.1x represents a compression from the trailing PE of 50.7x, suggesting the market is pricing in some improvement in earnings in the near term relative to the current period.
- +FCF was positive in 4 of the available measurement years, indicating the business has generated cash in most periods despite earnings headwinds.
- +Trailing PE of 50.7x is the second-lowest among the 6 sector peers by this metric, sitting below BEL (51.9x), ABB (86.8x), and CGPOWER (108.5x), and above only LT (33.4x).
Weaknesses
- −Quality score of 23/100 ranks HONAUT 6th of 6 peers in the Infrastructure sector — the lowest composite quality reading across the comparison set.
- −5-year earnings growth of -8.2% signals that earnings have eroded over the measurement window, even as the stock carries a premium PE multiple of 50.7x.
- −Debt-to-equity of 2.215 on a rising trend, combined with a consistency score of 43/100, reflects a balance sheet that has grown more leveraged while financial performance has remained uneven.
- −Price is below both the 50-DMA (₹29,700) and 200-DMA (₹33,879), with a 30.1% drawdown from the 52-week high and three resistance levels between ₹31,060 and ₹33,100 above the current price.
Open questions
- ?Does the gap between 7.1% 5-year revenue growth and -8.2% 5-year earnings growth reflect a temporary margin compression cycle or a structural deterioration in Honeywell Automation India's cost structure?
- ?What has driven the rising debt-to-equity trend to 2.215, and does the balance sheet trajectory suggest the leverage is being deployed into capacity that could generate future earnings, or servicing existing obligations?
- ?Given that HONAUT's quality score of 23/100 is the weakest among its 6 infrastructure peers, what specific operational or financial improvements would need to materialise before the stock's metrics converge toward peer medians?
- ?How sensitive is the forward PE compression from 50.7x to 40.1x to the earnings assumptions embedded in analyst estimates, and what is the historical accuracy of those estimates for this stock?
Peer comparison: Infrastructure
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HONAUT | Honeywell Automation India Ltd.You're viewing | 50.7 | — | 23 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹28,975.00
SMA 50
₹29,700.10
SMA 200
₹33,879.30
RSI (14)
42.3 (neutral)
From 52w high
-30.1%
1Y return
-15.0%
3M return
-10.0%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -8.2% against a trailing PE of 50.7x and forward PE of 40.1x: the valuation embeds a recovery that the earnings track record does not corroborate.
- highQuality score of 23/100 ranks HONAUT last (6th of 6) among sector peers; ROE is unreported for the current period and roeYearsAbove15 is 0 across available history, indicating structurally weak capital efficiency.
- mediumDebt-to-equity of 2.215 with a rising debt trend; FCF positive in only 4 of available years; consistency score 43/100 reflects uneven financial performance over the measurement window.
- mediumPrice of ₹28,975 is 30.1% below the 52-week high, 14.4% below the 50-DMA (₹29,700), and 14.5% below the 200-DMA (₹33,879); down 15.0% over 1 year and 10.0% over 3 months, with resistance clustered at ₹31,060–₹33,100.
- lowNews coverage is limited to 1 article in the measurement window — insufficient volume to draw conclusions about near-term news sentiment.
Cross-section contradictions
- 5-year earnings CAGR of -8.2% and zero years with ROE above 15% coexist with a trailing PE of 50.7x and forward PE of 40.1x, a pairing where the valuation premium is not supported by the historical earnings or profitability record.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days