Honeywell Automation India – Announces Record Dividend of 950%

Indian benchmark indices have kicked off Thursday’s session on a buoyant note amid positive global cues the Nifty and Sensex have gained 0.40% and 0.41%, respectively. Buying interest is visible in the broader market as well with Nifty Midcap and Smallcap advancing 0.40% and 0.53%, respectively.

Amidst the buoyancy in the market, Honeywell Automation India Ltd has left market participants in awe. It has jumped over 7% on Thursday.

The reason behind this strong up-move in the stock price is robust quarterly earnings reported by the company. During the quarter ended March 31, 2023, net sales of the stock has surged 27.2% YoY to Rs 849.68 crore from Rs 667.98 crore in quarter ended March 31, 2022. Quarterly Net profit jumped 54.16% YoY to Rs 112.03 crore. EBITDA stood at Rs 165.53 crore in the quarter ended March 31, 2023 up by 47.1% YoY.

Hold your breath, as we are about to reveal the most fascinating announcement made. The Board recommended a dividend of Rs 95 per equity share of face value of Rs 10 each for the financial year ended on March 31, 2023. This translates to a dividend of 950% on the face value of Rs 10.  

The stock is the second most expensive stock traded on the bourses as it trades above the 40,000 mark. The first expensive stock traded on exchange is MRF. Currently, the stock is trading above its all key short- and long-term moving averages. On Thursday, the stock managed to cross above its long-term moving average of 200-DMA.    

Talking about the stock’s long performance, the stock has delivered handsome returns of 22.35% and 48.45% in the last one and three years, respectively. Meanwhile, in the short-term i.e. in the last one-month the stock is up by 11.39%.   

The company is engaged primarily in the business of Automation & Control systems on a turnkey basis and otherwise.