Honeywell Automation shares surge over 11% after JM Financial upgrades, sees 46% upside

Shares of Honeywell Automation India Ltd. gained over 11% on Thursday, May 21, reporting its biggest single-day gain in two years.

Brokerage firm JM Financial upgraded its rating on the stock to "buy" and it has a price target of ₹44,000 apiece, indicating an upside of 45.8% from its previous closing price.

It said the stock trades at 34 times its FY28 estimated price-to-earnings ratio, which is the lowest among its automation peers.

The brokerage said Honeywell Automation's margins have turned the corner based on the fourth quarter results.

The company's revenue was "modestly below" JM Financial's estimate. The brokerage added that the EBITDA margin may recover in FY27 as there is limited need for further loss order provisioning, witnessed in earlier years.

Honeywell Automation's Its profit after tax increased 13.65% to ₹159 crore in the fourth quarter from ₹139.9 crore last year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 15.2% to 184.1 crore from ₹159.8 crore last year.

Its EBITDA margin expanded to 15.6% from 13.44% in the year-ago period.

Shares of Honeywell Automation gained 11.4% to hit an intraday high of ₹33,630 apiece on Thursday. This is its biggest single day gain since May 16, 2024, when it had risen 13.1%.

With this surge, the stock has turned positive for 2026, but is still down 11% over the last 12 months.

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