Honeywell Automation India Receives 'Sell' Rating from MarketsMOJO Amidst Poor Long-Term Growth

Honeywell Automation India, a leading player in the electronics-components industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of only 3.91% and operating profit at 6.27% over the last 5 years.
In the latest quarter, the company's results have been flat, with net sales growing at a negative rate of 7.27% and PBDIT and PBT LESS OI at their lowest levels. Additionally, the company's ROE of 14 indicates a very expensive valuation, with a price to book value of 9.9.

Despite generating a return of 13.72% in the past year, the company's profits have only risen by 19%, resulting in a high PEG ratio of 3.7. This underperformance in the market is a cause for concern.

On the positive side, Honeywell Automation India has a high management efficiency with a ROE of 17.31% and a low debt to equity ratio. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

With a market cap of Rs 38,288 crore, Honeywell Automation India is the largest company in the sector, constituting 29.88% of the entire industry. Its annual sales of Rs 4,006 crore make up 20.70% of the industry.

Overall, while Honeywell Automation India may have a strong presence in the electronics-components industry, its recent downgrade to 'Sell' by MarketsMOJO suggests that investors should approach with caution. The company's poor long-term growth and underperformance in the market are key factors to consider before making any investment decisions.