Deep dive into Honeywell Automation and all about Elgi Equipments

In this special show, ‘Inside Out - On The Road ’, the focus is on Honeywell Automation. CNBC-TV18’s Nigel D'Souza visited the Honeywell Automation plant in Pune to get a deep dive into the company. The company has been an underperformer and the stock price move has lagged its peer set in the past one year.

On the margin front, the company which enjoys the best margins among its peers said it has seen a sharp contraction, and now it is delivering mid-teen margins. In the past, it used to deliver high teen margins. One of the key reasons for Honeywell’s better margins in comparison to its peers is that it has a larger proportion of service-based revenues. Even on the valuation front Honeywell traditionally demanded a much high premium in comparison to its peers, but that as well has narrowed considerably.

Honeywell Automation India is a leader in providing integrated automation and software solutions - including process solutions and building solutions. It has a wide product portfolio in environmental and compassion controls, as well as sensing. It also provides engineering services in the field of automation and control to global clients.