Stock Performance and Market Context
On 27 Jan 2026, Honeywell Automation India Ltd (Stock ID: 215539) recorded its lowest price in the past year at Rs.31,103. This new low comes after three consecutive days of declines, during which the stock lost 6.25% in value. Today’s performance saw the stock underperform its Industrial Manufacturing sector by 0.35%, continuing a trend of relative weakness.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex recovered from an initial negative opening to close 0.34% higher at 81,815.40 points. Notably, while the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals for the benchmark.
Long-Term Performance and Valuation Concerns
Over the past year, Honeywell Automation India Ltd has delivered a total return of -21.16%, significantly lagging the Sensex’s positive 8.56% return over the same period. This underperformance extends beyond the last 12 months, with the stock consistently trailing the BSE500 index in each of the previous three annual periods.
Financially, the company’s operating profit has declined at an annualised rate of -0.84% over the last five years, indicating subdued growth. The most recent quarterly results, reported in September 2025, were largely flat, offering little impetus for a turnaround in sentiment.
Honeywell Automation India Ltd’s return on equity (ROE) stands at 12.3%, which, when combined with a price-to-book value of 6.6, points to a valuation that is considered very expensive relative to its earnings and book value. Despite this, the stock is trading at a discount compared to the average historical valuations of its peers, suggesting some valuation compression in the sector.
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Sector Position and Market Capitalisation
Honeywell Automation India Ltd remains the largest company within the Industrial Manufacturing sector, with a market capitalisation of approximately Rs.27,718 crores. This represents 27.86% of the sector’s total market cap, underscoring its significant influence. The company’s annual sales of Rs.4,537.80 crores account for 18.79% of the industry’s total revenue, highlighting its substantial operational scale.
Despite its size, the company’s financial metrics have not translated into positive stock performance. Its low average debt-to-equity ratio, effectively zero, indicates a conservative capital structure, which has not been sufficient to offset the pressures from earnings stagnation and valuation concerns.
Comparative Analysis and Ratings
Honeywell Automation India Ltd’s Mojo Score currently stands at 30.0, with a Mojo Grade of Sell, downgraded from Hold on 2 Sep 2025. This downgrade reflects deteriorating fundamentals and market sentiment. The company’s market cap grade is rated 2, indicating a mid-tier valuation relative to its size and sector peers.
The stock’s consistent underperformance against the benchmark indices and peers over the last three years, combined with declining profits of -2.2% over the past year, has contributed to this cautious grading. The stock’s 52-week high was Rs.41,599.80, illustrating the extent of the recent decline to the current low.
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Shareholding and Ownership Structure
The majority ownership of Honeywell Automation India Ltd rests with its promoters, who maintain significant control over the company’s strategic direction. This concentrated shareholding structure is typical for large industrial manufacturing firms in India and provides stability in governance.
While the company’s low leverage reduces financial risk, the lack of growth in operating profits and subdued returns have weighed on investor confidence, as reflected in the stock’s recent price movements.
Summary of Key Metrics
To summarise, Honeywell Automation India Ltd’s stock has reached a 52-week low of Rs.31,103 after a period of sustained decline. The stock’s underperformance relative to the Sensex and its sector, combined with flat recent results and a high price-to-book ratio, have contributed to a cautious market stance. The company’s sizeable market capitalisation and low debt levels provide some financial stability, but the subdued growth in profits and returns on equity remain areas of concern.
Market conditions today saw the Sensex recover from an early dip, led by mega-cap stocks, while Honeywell Automation India Ltd continued to trade below all major moving averages. This divergence highlights the stock’s current challenges within an otherwise resilient market environment.
Investors and analysts will continue to monitor the company’s financial performance and valuation metrics closely as it navigates this period of relative weakness.
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