Stock Market Today: Honeywell Automation share price declined 5% in the morning trades on Thursday post Q4 results, that were announced after the market hours on Wednesday.

The Honeywell Automation share price had scaled 52 week high of ₹50,101 on the NSE on Wednesday in anticipation of a good performance before closing at ₹49,285.45 . On Thursday the Honeywell Automation share price that opened lower at ₹47,389.05, dipped to lows of ₹46,253.20.

The reported net profit by Honeywell Automation at ₹148.2 crore grew 32.3% over ₹112 Crore in the year ago quarter. Honeywell Automation revenues at ₹950.7 Crore grew 12% over ₹849.7 crore in the year ago quarter though declined 11.2% sequentially.

Analysts at Antique Stock Broking however said that the reported revenues were below their estimates of close to ₹1100 Crore.

The operating performance as per Antique analysts also was lower than their estimates adjusted for one-time employee cost reversal of ₹27.9 crore. Adjusted Ebitda that stood at around ₹140 crore, up 2.3% year-on-year was below Antique estimate of around ₹180 crore and adjusted  Ebitda margin declined 140 basis points to 14.9% against their estimates of 16.4%.

The analysts at Antique also added that the last four years of Honeywell’s operating performance has been under severe pressure with sales seeing CAGR (compound annual growth) of 5% and Ebitda CAGR of negative 3% over FY20–24. the same has been impacted by supply-side challenges as chip shortage hurting execution and adverse revenue mix with exports at 44% in FY20 to 41% in FY23.

Antique Stock Broking ahs revised earnings marginally upwards for FY25 and FY26 by 3% and 12% respectively to factor in improved business performance given strong domestic capex environment expected to play out. They  maintain HOLD rating on the stock with a revised Target price of ₹52,328 valuing at 60 times FY26 earnings per share estimates.