Shares of Honeywell Automation India, a prominent provider of integrated automation and software solutions, experienced a significant surge of over 18% on Thursday following the announcement of its robust fourth-quarter earnings and a substantial dividend declaration. The positive sentiment was further bolstered by an upgrade from brokerage firm JM Financial.
Strong Financial Performance in Q4
Honeywell Automation India reported impressive financial results for the fourth quarter, ending March 31, 2026. The company's net profit saw a 14.15% increase, reaching Rs 159.7 crore, up from Rs 139.9 crore in the same period last year.
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 15.2% to Rs 184.1 crore, compared to Rs 159.8 crore previously.
- The EBITDA margin expanded notably to 15.6% from 13.44% year-on-year, indicating improved operational efficiency.
- Total revenue for the quarter reached a record Rs 1228.2 crore, marking a 6% increase from Rs 1161.1 crore a year ago.
Dividend Announcement and Stock Surge
In addition to the strong earnings, the company's Board of Directors recommended a final dividend of Rs 110 per equity share for the financial year ended March 31, 2026. This translates to an impressive 1,100% of the face value of Rs 10 per share, pending shareholder approval at the upcoming Annual General Meeting.
The positive news propelled Honeywell Automation shares to Rs 35,769.55, an 18.55% jump from its previous close of Rs 30,172.35. This surge increased the firm's market capitalization to Rs 31,033 crore.
Brokerage Upgrade Fuels Optimism
Brokerage firm JM Financial upgraded its rating on Honeywell Automation India to "buy," setting a new price target of Rs 44,000 per share. This target suggests a potential upside of 45.8% from the stock's previous closing price.
JM Financial highlighted that the stock currently trades at 34 times its FY28 estimated price-to-earnings ratio, positioning it as the lowest among its automation sector peers. This attractive valuation was a key factor in the upgrade, signaling confidence in the company's future growth prospects.
About Honeywell Automation India Limited
Honeywell Automation India Limited (HAIL) is a critical player in the industrial automation and control systems sector. As a subsidiary of global technology leader Honeywell International Inc., HAIL delivers a wide array of technologies and solutions designed to enhance productivity, safety, and sustainability across diverse industries, including oil and gas, refining, chemicals, life sciences, and building management.