Honeywell Automation India Ltd Falls to 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

On the day, Honeywell Automation India Ltd (Stock ID: 215539) underperformed its sector by 0.92%, closing with a day’s low at Rs 31,490.95, down 2.67% intraday. The stock has experienced a consecutive two-day decline, resulting in a cumulative loss of 5.8% over this period. This downward momentum has pushed the share price below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

In contrast, the Sensex opened flat and traded slightly lower by 0.21% at 82,130.63 points, remaining approximately 4.9% below its 52-week high of 86,159.02. While the benchmark index shows some resilience, Honeywell Automation’s performance diverges notably, reflecting company-specific pressures.

Long-Term Performance and Valuation Metrics

Over the past year, Honeywell Automation India Ltd’s stock has declined by 24.80%, significantly underperforming the Sensex, which posted a positive return of 7.29% during the same period. The stock’s 52-week high was Rs 42,000, highlighting the extent of the recent correction.

Financially, the company’s operating profit has contracted at an annualised rate of 0.84% over the last five years, indicating subdued growth. The latest quarterly results for September 2025 were largely flat, offering limited impetus for share price appreciation.

Return on equity (ROE) stands at 12.3%, while the price-to-book (P/B) ratio is elevated at 6.9, suggesting a relatively expensive valuation compared to historical averages. Despite this, the stock currently trades at a discount relative to its peers’ average historical valuations, reflecting market caution.

Sector Position and Shareholding

Honeywell Automation India Ltd is the largest company in the Industrial Manufacturing sector with a market capitalisation of Rs 28,797 crores, representing 28.04% of the sector’s total market cap. Its annual sales of Rs 4,537.80 crores account for 18.81% of the industry’s revenue, underscoring its significant market presence.

The company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure. Promoters remain the majority shareholders, maintaining control over strategic decisions.

Comparative Performance and Market Sentiment

Honeywell Automation’s stock has consistently underperformed the BSE500 benchmark over the last three years. Alongside the 24.80% negative return in the past year, the company’s profits have declined by 2.2%, indicating pressure on earnings growth.

This persistent underperformance contrasts with the broader market’s positive trajectory and highlights challenges in sustaining investor confidence.

Recent Rating and Market Assessment

MarketsMOJO has downgraded Honeywell Automation India Ltd from a Hold to a Sell rating as of 2 September 2025, reflecting a reassessment of the company’s growth prospects and valuation. The Mojo Score currently stands at 30.0, with a Mojo Grade of Sell, indicating a cautious stance on the stock’s near-term outlook.

The market cap grade is rated 2, consistent with its large size but tempered by recent performance metrics.

Summary of Key Metrics

To summarise, Honeywell Automation India Ltd’s stock has reached a 52-week low of Rs 31,490.95, reflecting a combination of subdued profit growth, valuation concerns, and consistent underperformance relative to benchmarks and peers. The stock’s decline over the past year contrasts with the broader market’s gains, while its financial ratios suggest a premium valuation despite recent price weakness.

Trading below all major moving averages and with a recent downgrade in rating, the stock’s current position highlights the challenges faced within the Industrial Manufacturing sector and the company’s specific market dynamics.

Unlock special upgrade rates for a limited period. Start Saving Now →