Sharekhan has given Buy recommendation for Honeywell Automation India with a target price of Rs. 56,265 in its research report issued on Mar 12, 2021
Sharekhan’s research report on Honeywell Automation India
The management expects FY2021 performance to be better than FY2020, backed by execution capabilities and growing demand for industrial automation and software solutions. Growth in the domestic business is expected to benefit Honeywell driven by increasing technological capabilities with large opportunities in sectors such as oil & gas, pharma & life sciences, smart cities, airports and building solutions. This provides strong growth visibility for FY2022. Exports to remain steady. New brand to cater to SMEs, providing tailor-made products and solutions. Company foresees huge opportunity ahead and expects business to contribute 10% of revenues in 2-3 years.
Outlook
We retain a Buy on Honeywell Automation India with a revised price target of Rs. 56,265 considering its strong earnings growth potential, led by a domestic economic recovery.